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ACE Group Outlines the Need for Environmental and Pollution Protection Insurance

May 14, 2015

Although environmental coverage has historically been most attractive to manufacturers that had obvious exposures, ACE Group’s William P. Hazelton, executive vice president, environmental and construction, discusses the factors that have expanded environmental and pollution coverage, especially for construction contractors.

In the U.S., environmental coverage, especially for construction contractors, is “a vital component” and is expanding, with increased demand as companies become more multinational. “It’s a coverage contractors have in the U.S. so they buy it while working abroad too,” he added.

Much of the value in environmental coverage is that it’s a multi-year policy, which also covers regulatory risk and damage to reputation, added J. Craig Richardson, senior vice president, environmental risk, for ACE USA. The policies often provide expert catastrophe management services that include public relations assistance and legal counsel as well as business interruption coverage.

Hazelton noted that the recent escalation in the demand for environmental coverage is primarily because most construction contracts now include a requirement for the coverage along with other insurance. About five years ago, contractors didn’t need an environmental policy to bid on many projects, but now they do. “It’s in there almost all the time,” he said.

For more information and to read the article in full, please visit ACE Group Article About Environmental and Pollution Protection Insurance.

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