HETI works with insurance company underwriting and loss control/engineering personnel to provide the technical data and analysis needed to evaluate potential environmental insurance risks - helping them make knowledgeable underwriting decisions and avoiding unnecessary and unforeseen problems.
These assignments - ranging from pre-bind telephone surveys and technical file reviews…to site surveys and cleanup cost cap evaluations - follow the format supplied by our customers to rate risk as well as to provide loss control measures to mitigate identified exposures.
Representative Projects *
Site Surveys, Various Facilities (Multi-State) - Leading environmental insurance carriers have hired HETI to conduct site surveys at various facilities - to assess environmental risks and evaluate known contamination, where applicable…prior to binding pollution liability coverage. Facilities surveyed included: a steel coil coating facility, adjacent to a creek in Mississippi; a California-based, surfboard core manufacturer that used highly toxic chemicals in the manufacturing process; an oily wastewater treatment and disposal facility, located on an 100-year-old oil refinery property; a Wisconsin petroleum products terminal; a piston casting and refinishing plant in Kentucky; and saltwater disposal well facilities and barge unloading dock in Louisiana. HETI presented written reports for each facility to the carriers' environmental underwriters - offering substantive recommendations, where applicable, to aid in the coverage decision-making process. Recommendations ranged from implementation of a facility inspection program and improved housekeeping…to proper chemical storage/handling procedures and secondary spill containment…to verification of subcontractor insurance coverage.
Pollution Liability/Microbial Risk Assessment, Various Sites (Multi-State) – An environmental insurance company has retained HETI to assist in the underwriting decision-making process by conducting a number of Environmental Liability and Microbial Risk Assessments of prospective insureds – owner-controlled insurance program (OCIPs) that include developers and contractors involved in wrap-around construction projects – and by providing consultation in mold prevention. Risks have included a luxury resort located in southern California and a resort hotel/country club in North Carolina.
The scope of work has normally consisted of: a meeting with property management personnel and a site survey to gather information about the site – including site facilities (construction and property features, etc.), hazardous materials exposures, occupancy, premises protection, building preventive maintenance, general housekeeping, water intrusion and mold management, and loss history – and an evaluation of the exposure of employees, building occupants/guests and the public to property damage and bodily injury caused by mold growth, pollution hazards, and chemicals used on the premises. The purpose of the risk assessment and consultation has been to reduce the prospective insured’s exposure to environmental losses and/or water intrusion, water damage, and subsequent microbial growth in the built environment.
After completing the review/inspection, HETI provides a comprehensive report to the underwriter, including opinions on whether the prospective insured is an acceptable risk for pollution liability/mold coverage, and site-specific recommendations to mitigate pollution and mold exposures on the property. HETI’s professional opinions and consultative services…along with the prospective insureds’ compliance with HETI’s recommendations…have resulted in binding tens of thousands of dollars in environmental/mold premium.
Underwriting Support, Beverage Bottling Company (Southeastern U.S.) – HETI was retained by a major environmental insurance carrier to provide underwriter support for a pollution liability policy that would cover approximately 75 beverage bottling/warehouse facilities throughout the Southeast. During the course of the project, HETI responded to the ever-changing requirements of the potential insured and their broker – initially evaluating environmental exposures, and then bodily injury/property damage risks, for an expanding group of facilities. HETI also conducted telephone surveys and made requests for data/information from the insured to assist in the underwriting process. Based on HETI’s evaluations and assistance, the carrier ultimately bound this significant account – after about a year of discussion and negotiation.
Pre-Bind Telephone Surveys, Various Operations (Multi-State) - HETI has been contracted by various environmental insurance companies to conduct pre-bind telephone interviews…on a rush basis…to supplement information provided to the underwriters in the account applications. Key personnel at casino sites, metal products manufacturing sites, plastic/polymer manufacturers, steel mini-mills, tire recyclers, water treatment plants, wood preserving facilities, and various industrial/manufacturing operations were interviewed to obtain information regarding environmental and general liability exposures. HETI provided the results of these surveys - in five business days…or less - to assist in the underwriting process.
Site Surveys, Various Industrial Facilities (Multi-State) - A major environmental insurance carrier retained HETI to conduct site surveys to evaluate general, fleet, products, and pollution liability risks - in connection with new and renewal insurance coverage. Facilities evaluated included chemical manufacturing and distribution sites, coal-fired power plants, fertilizer manufacturing plants, hazardous waste management facilities, paint manufacturing sites, paper mills, petroleum products blending operations, solid waste landfills, tanneries, large groundwater remediation sites, general manufacturing facilities, and used oil and solvent recycling sites. For some facilities, an assessment of emergency procedures was also provided. HETI prepared written reports for each facility - presenting recommendations to the client designed to assist them in making informed underwriting decisions and to reduce the likelihood of incidents resulting in claims against the policies.
Site Closure Evaluation, Hazardous Waste TSDFs (Multi-State) - HETI personnel assisted a major insurance carrier in reviewing an account seeking coverage for closure of a portfolio of twelve hazardous waste treatment, storage and disposal facilities. The review consisted of an assessment of the feasibility of the proposed closure plan, an evaluation of estimated closure costs, and the identification and ranking of uncertainties that could impact the cost of site closure. HETI provided a report listing potential issues for each facility and identifying circumstances that could significantly impact the cost of site closure.
Pre-Bind Technical File Review, Industrial Account, (Multi-State) - A major environmental insurance carrier contracted HETI to evaluate a pollution liability insurance application by a multi-facility corporation. HETI evaluated the materials provided by the insurance company on eight industrial sites in Alabama, Connecticut, Georgia, Massachusetts and Oregon…and provided a comprehensive report addressing the insurer's specific questions. HETI performed this task on a fast-track basis - issuing a report within one week of receipt of the materials. As a result, the carrier chose to proceed with insuring the risk and asked HETI to provide a recommendation on exclusions to the insurance coverage.
* This is a brief description of selected Environmental Liability Risk Assessment assignments completed by HETI. For a more complete discussion of our capabilities, please contact us for a copy of our Statement of Qualifications.