By Ivy Riggs, Executive Underwriter

“You sold me the wrong policy!” is a terrible claim no producer ever wants to hear from their client…especially when it’s true. But being an expert in all product lines and understanding the nuances of each can be a challenge for even the most diligent of professionals. With highly specialized products like Site Pollution insurance, it can be even more daunting. This overview will briefly explore one of the more common questions fundamental to this product: what is the difference between Sudden & Accidental (S&A) Site Pollution coverage and a gradual or “broad” Site Pollution policy?

This example may help to illustrate some of the key distinctions. Imagine that a manufacturer has a lined pit on their property for the temporary collection of hazardous wastes prior to removal for treatment and disposal. An unusually severe weather event causes the pit to overflow, releasing contaminants onto the property and into a nearby stormwater system which carries the pollutants offsite. This type of event would be considered sudden and accidental under most Site Pollution policies, and even under most General Liability policies that include a small S&A give-back. The key considerations to evaluate when asking whether S&A coverage is “enough” include the anticipated likelihood, frequency, and severity of such events. These answers will help producers and their clients to determine appropriate limits and retentions to address these exposures. Read the full article on the Beacon Hill Associates website.