OUTLINE AIG Environmental Background What is Environmental Insurance? Insurance Products Commercial Pollution Legal Liability EAGLE® Other AIG Consultants Background Information AIG Environmental is a division of AIG, Inc, a leading international insurance and financial organization with assets of over $800 billion Writing environmental insurance since 1979 14 offices across the US and Canada with full underwriting staff Dedicated engineering staff (AIG Consultants) exceeds 40 professionals Provide underwriting, claims management, loss-control services, contract review, emergency response network, and connections with AIG’s member companies What is Environmental Insurance? Insurance Definition of Pollution1: The contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insureds to seek coverage under separate “environmental impairment liability” policies. Insurance Definition of Pollutant1: An irritant or contaminant, whether in solid, liquid, or gaseous form, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste (when they can be regarded as an irritant or contaminant). 1 Glossary of Insurance and Risk Management Terms, 10 th Addition. Copyright 2006. Published by International Risk Management Institute. Dallas, TX. Page183 Understanding Your Exposures: Risk Management Low Severity High Clients: Control High Frequency / Low Severity Losses Insurance: Indemnifies for High Severity / Low Frequency Losses Insurance Avoidance Retention Loss Control & EHS&S Mgt Systems Low Frequency High Insurance Products Commercial Pollution Legal Liability® (CPLL) Environmental insurance only Offered to most classes of business EAGLE® (Environmental And General Liability Exposures) Inclusive coverage that combines GL with Pollution Liability, Auto & Umbrella Offered to specific classes of business Other Products (not explained in presentation) Errors & Omissions – for environmental services, firms, labs, & engineers Contractor Operations & Professional Services (COPS) – for contractors and consultants SEAL (Supplemental Environmental Auto Liability) Passport – International Pollution Coverage Commercial Pollution Legal Liability® (CPLL) Pay for the Insured’s Pollution loss as a result of: Bodily Injury Property Damage Clean-Up Costs Standard agreement encompasses: Owned, leased, or managed sites (site-specific) 3rd party locations / Non-owned sites Transportation Contracting Operations Contractual Liability Claims must be first made against the Insured and reported to the Company, in writing, during the Policy Period, or during the extended reporting period if applicable EAGLE® Environmental and General Liability Exposures Specifically designed for companies with chemical exposures Pollution coverage included in general liability, auto, and umbrella policy Recognizes ChemStewards® as risk reduction tool Considers EHS&S Management Systems in underwriting Premium credits offered for verification costs EAGLE® - Flexible Structure General Liability Coverage: A - 3rd Party Bodily Injury & Property Damage B - Personal & Advertising Injury Liability C - Medical Payments Pollution Coverage: D - Gradual Pollution Legal Liability for Designated Locations E - Enhanced Pollution Coverage EAGLE® - Pollution Coverage Pollution (Coverage D1) On Site 3rd Party Claims for Bodily Injury On Site Property Damage On Site Cleanup Costs (optional) Off Site Bodily Injury Off Site Property Damage Off Site Clean Up Cost Non-owned locations can be included Pollution Enhancements (Coverage E) E 1 – Pollution from Hostile Fire E 2 – Products Pollution Liability E 3 – Contractors Pollution Liability E 4 – Pollution from Transported Cargo What is AIG Consultants? Consulting Services for: Environment Healthcare Safety Property Crisis Management 400+ engineers and consultants worldwide 33 countries and 130 jurisdictions ISO9001-2000 certified Supports the AIG Environmental underwriting process with: Technical analysis of the operations Recommendations for improvement AIG Consultants: Customer Services Technical Consultation On-site Consultation or Phone survey Risk Tool – on line risk management loss control information source – www.risktool.com Provides EHS&S web links, training programs, program templates, recordkeeping programs and more All SOCMA members are eligible for COMPLIMENTARY registration on Risk Tool Transportation-Related Services National Safety Council Defensive Driving Course - online training Mock DOT Surveys – overview of fleet compliance practices Driver Monitoring – sticker posting on fleet vehicles with VIN and a toll free 1-800 number PIER (Pollution Incident and Environmental Response) Complimentary 24/7 environmental contracting & consulting services for all customers PIER I – transportation & fleet coverage PIER II – site coverage PATROL (Planning and Tracking Response On Line) – www.aigpatrol.com Top Screen Assessments Terrorism / Security Vulnerability Assessments Disaster Control Continuity Planning Your AIG Team Atlanta: Berkeley Heights: Boston: Chicago: Cleveland: Dallas: Houston: (770) 671-2304 (908) 679-3276 (617) 457-5813 (312) 930-5379 (216) 479-8832 (214) 932-2310 (713) 342-7512 Los Angeles: New York: Philadelphia: San Francisco: St. Louis: Toronto: Homeland Security: (213) 689-3935 (212) 770-2670 (215) 255-6170 (415) 836-2727 (314) 889-7845 (416) 596-4104 (212) 770-8103 Questions? Insurance underwritten by member companies of American International Group, Inc. The description herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for complete details of coverage and exclusions. Coverage may not be available in all states. Issuance of coverage is subject to underwriting. The scenarios summarized above are offered only as examples. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy. Anyone interested in the above product(s) should request a copy of the policy itself for a description of the scope and limitations of coverage. Policy terms may vary bases on individual state requirements and may not be available in all states.