New Day was retained to design an Environmental Casualty and Legacy Pollution Legal Liability program for a private equity firm who purchased 3 oil & gas waste companies that operated out of 18 different locations in 3 states. Due to the complexity of the deal and the challenging environmental exposures, New Day conducted extensive marketing to obtain the optimal solution for both the operational and legacy environmental exposures.
New Day performed a policy review of the environmental casualty coverages for the three oil and gas waste companies each of which were written with different carriers. At the completion of the policy review, New Day discussed coverage enhancements with the environmental casualty marketplace and a decision was made to work with a market that could write both the going forward environmental casualty program as well as the legacy environmental coverage to eliminate any coverage discrepancies in the event of a future claim.
New Day coordinated review of the due diligence provided in three different data rooms and arranged and moderated a conference call between the private equity firm, their attorney and the current insured to discuss the outstanding environmental issues associated with the properties. This call assisted the market with understanding the environmental regulations unique to this type of risk and the nuances concerning the environmental exposures, allowing them to develop comprehensive environmental casualty and legacy environmental programs.
New Day successfully placed environmental casualty coverage that included a combined primary general liability and pollution legal liability program and a $25 million limit excess policy covering 18 properties, while the legacy pollution legal liability policy covered unknown legacy environmental issues as well as liability coverage for known environmental issues associated with the portfolio. The legacy environmental coverage was written with a $10 million each incident/$10 million aggregate limit for a 10-year policy term.