Aon Environmental Services Completes Risk Assessment

posted Feb 18, 2013, 8:05 AM by Preserve Woodridge Lake   [ updated Aug 20, 2013, 7:11 AM ]
Aon brokerage was retained to evaluate the cost of securing an insurance policy to cover the risk of a herbicide application to Woodridge Lake. After reviewing the Homeowners Association agreement and the potential application of herbicides in the lake they concluded:
 
"We secured conceptual pricing for spraying operations (application of herbicides). The indication is based on the following:

    - Project value of $50,000 to $75,000
    - Herbicides being applied by a reputable contractor
 
The policy required in this case is an owner controlled Contractor’s Pollution Liability policy. It provides coverage for third party claims for bodily injury, property damage and cleanup costs, including defense costs, if any claims arise in connection with spraying activities. The project term would be 2-4 months. And you would require a 10 years completed operations period to the policy to allow for damages occurring and reported within ten years from the spraying activities since claims related to these activities typically take many years to develop.
 
Environmental policies are subject to minimum premiums which we begin to run into. Pricing by limit option with a 25,000 SIR would be $100,000-125,000 for limits up to $25 million."