NEW YORK CITY—Guiding you through risks and potential underwriting perils, Lance J. Ewing of AIG provides his market-spanning insights. A recipient of the Risk Manager of the Year for Business Insurance and Risk Innovator of the Year awards, Ewing is an internationally recognized authority on insurance, risk management, crisis management and risk financing, among many other insurance and risk-related subjects. At AIG, he serves as the leader for Hospitality and Leisure, as well as the Real Estate Industry Practice Groups.
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Dear Insurance Leader,
Our company provides real estate management for commercially owned office buildings and condos. Occasionally we do some construction work. Do we really need pollution insurance coverage?
—Concerned Building Operator
Dear Operator,
Almost every company and industry needs environmental or pollution coverage. Contractors Pollution Liability (CPL) provides coverage to contractors for loss resulting from pollution conditions caused by covered operations including work performed by subcontractors.
Covered losses may include third-party claims for bodily injury, property damage, and environmental damage including third-party claims against the Insured alleging improper supervision of subcontractors. Coverage is also available for those emergency response costs incurred by the Insured in response to pollution conditions requiring immediate action. CPL is available on either a claims-made or occurrence basis.
For example a real estate company submitted a proposal for a $250,000 purchase and $2.5 million redevelopment of a city-owned site.
Formerly a brownfield property, the site had recently been designated “clean” by the EPA. The clean up was integral to a citywide plan for revitalization. After lengthy negotiations over a 12-month period, the company and city sealed the deal and construction began.
Shortly after breaking ground, a bulldozer uncovered several barrels of chemicals, probably buried during a past operation. While removing the barrels, one of them spilled. The chemicals flowed into an unprotected drainage pipe that dumped into a nearby river. A few days later, neighbors called local authorities and complained about unpleasant odors. Further investigation linked the odors to the chemical spill. Ten households alleged bodily injury and property damage and sued the company. The court ordered the company to clean up the river. Clean up and claim settlement cost the company $450,000. Thus, the need for them to purchase pollution coverage.
Laws in the US and even other countries are becoming more stringent related to environmental and pollution related incidents. Having the right insurance can be critical not only for coverage but for the reputation risk of your company.
Be sure to consult with your insurance agent/broker or your insurance carrier.
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Lance Ewing
Lance J. Ewing has extensive executive experience in the field of risk management and insurance including his current role as Vice President for AIG Property/Casualty. Lance leads the Hospitality & Leisure, as well as the Real Estate Industry Practice Groups for AIG. Prior to this position he served in senior risk management capacities for Caesars Entertainment Inc. (fka Harrah’s), GES Exposition Services and for the City of Philadelphia School District. Mr. Ewing additionally worked for various insurance companies including Lumbermen's Underwriting Alliance, Pennsylvania Hospital Insurance Company (PHICO) and New York Lumberman's Insurance Trust in risk management and loss control capacities. Mr. Ewing received his Master's degree in Law & Justice from the University of Pittsburgh and completed his second Master's degree in Occupational Safety Engineering. In addition to his Associate in Risk Management (ARM) designation and his International Certified Risk Manager (CRM) designation, he is a matriculated Chartered Property Casualty Underwriter (CPCU) candidate and has completed his Enterprise Risk Management Professional designation (ERMP). Lance was National President 2003-2004 for the Risk & Insurance Management Society (RIMS) and was also the Chief Risk Officer (CRO). He teaches risk management as a faculty member for the National Alliance for Insurance Education & Research. He also served as a Board member for the Certified Insurance Counselor (CIC) Board. Mr. Ewing was a member of the Willis Client Advisory Board, the Zurich Client Board and the AIG Advisory Board. Other board positions previously held include the Spencer Educational Foundation, the National Fire Protection Association (NFPA) Safety to Life Committee, the Environmental Risk Management Committee of the ASTM and the Public Risk Insurance Management Association. He has a scholarship in his name (Lance J. Ewing Educational Scholarship) for the Certified Risk Management International designation. Mr. Ewing was honored as the 2008 Risk Innovator of the Year and was the 2007 Risk Manger of the Year (Business Insurance). He has authored several articles on insurance, risk management, crisis management and workers' compensation. He is a frequent speaker on enterprise risk management, claims, disaster recovery and risk financing. In addition, he has testified in both Federal and State hearings on risk management legislation. He has spoken internationally to promote insurance and risk management in Croatia, Romania, Kosovo, Turkey, Spain, Italy, Switzerland, United Kingdom, Canada, Mexico, Bermuda, Australia, India, China and Japan. Mr. Ewing continues to be a strong and outspoken supporter of the insurance and risk management industry.
