New Jersey’s Site Remediation Reform Act (SRRA) aimed to relieve the New Jersey Department of Environmental Protection from a backlog of delays in remediation projects at contaminated sites in the state. It shifted the supervisory role of these projects to licensed professional remediation professionals (LSRPs) to ensure that cleanup would proceed in a timely manner. With the transfer of oversight responsibilities came an increased exposure to loss for the LSRP’s. The New Jersey LSRP Association created a Risk Management and Loss Prevention Committee to help identify these new exposures. It found that its members were unsure of whether their existing liability policies provided the coverage needed.
Responding to a request from the New Jersey LSRP Association, Vin Falcigno presented strategies for uncovering SRRA exposures to the LSRP community. The four areas of concern that he highlighted are:
- Civil Actions, Fines & Defense
- Response Action Outcomes (RAO) Re-Openers
- Intentional Acts
- Immediate Environmental Concerns (IEC’s)
Each of the above items are addressed in liability policies but there are inconsistencies in the way each policy relates to these concerns. For example, the definition of a consultant’s professional services varies from policy to policy and in turn broadens or narrows the coverage they afford. It is also important to compare insuring agreements and policy exclusions to ensure an existing policy or one under consideration meets the needs of the LSRP’s risk program. If these needs are not met through existing policy language, it is necessary to then negotiate terms with an insurer to achieve the desired coverage. Contact us for an complimentary analysis of your exposures and review of your existing liability coverage.