New Supply Chain Environmental Liability Cover

Insurance Broker Alliant Insurance Services & Navigators Insurance Company has introduced a New Supply Chain Environmental Liability Cover

It doesn’t take a major oil spill to trigger an environmental claim. It may be as unintentional as an incorrectly positioned valve that causes a toxic release or as seemingly innocuous as contractual inconsistency in a charter party agreement that later results in unknowingly assumed environmental liabilities. Under U.S. law or international laws, environmental liabilities exist without regard to when the act of pollution occurred and regardless of who is responsible for the act.

California based insurance broker Alliant has introduced a new cover to protect commodity owners/traders/buyers/sellers/arrangers from direct and indirect environmental liabilities which result from sudden, accidental or gradual pollution releases whilst the goods or products are making its way through the chain of commerce. This policy complements the assured’s liability insurance policies and supplements deficiencies of its counterparties insurance programs.

Some liabilities assureds may be exposed to and which this policy is specifically designed to cover are:
•    Legal liabilities for hazardous goods or products while be transported, held in storage (temporary or permanent), delayed at customs or held for transshipments;
•    Assureds contractually assumes risk of loss for hazardous goods or products, either on the buy or sell side, regardless of geography;
•    Counterparties inability to fund its share of environmental losses;
•    Counterparties ability to contractually limit its obligations for environmental damages;
•    Legal defense expenses of the assured and other contractually obligated parties, incurred as a result of an alleged environmental act, without regard to fault;
•    Mislabeling, misrepresentation or misdeclared goods is deemed a breach warranty under the COGSA;  
•    The 1994 changes or the Pollution Compromise to the York Antwerp rules preclude an allowance for environmental liabilities from the property involved in the maritime adventure. 
•    Damage to the environment or associated actions which may be brought under Natural Resource Damages or Environmental Damages Act or similar statutes throughout the world.

This policy is designed with the understanding trading activities take place across numerous geographies and modes of transport vary from rail, vessel, barge, truck and pipeline.  Furthermore, this policy underwrites and accepts both direct losses and indirect losses, such as indemnity obligations assumed by assureds.

For further information please contact:

Christopher Alviggi
Alliant Insurance Services, Inc.
[email protected]
Mobile:  (917) 716 - 1420