There’ll be a lot of complex claim scenarios following the natural disaster named Sandy that struck the heart of America’s most populous region. Among the most complicated will be those that involve the release of hazardous contaminants or pollutants.
Environmental insurance is designed to cover losses like that, and policyholders may be pleasantly surprised to find that the coverage frequently extends beyond the typical perils they were worried about when they bought pollution coverage in the first place. If they’re looking for simple claim adjusting, however, they’ll likely be disappointed.
Issues to consider in environmental claims include:
- Determining the scope and nature of the loss
- Defining the extent and cost of remediation required
- The potential for heavy involvement by government agencies
- Exclusions and loopholes that address pollutants
- The challenge of quantifying something that may be difficult to see, smell or adequately measure
Next week, our monthly Insights e-publication looks at environmental claims post-Sandy in greater detail—but here is a WillisTV video preview of it by my environmental practice colleague Rich Sheldon.