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HomeMy WebLinkAboutMMIA - Pollution CoverageMontana Municipal Insurance Authoritt/ August 21, 2006 Mary Embleton City Clerk-Treasurer City of Laurel PO Box 10 Laurel MT 59044 Re: Addition of Pollution Coverage Dear Ms. Embleton: The Montana Municipal Insurance Authority is pleased to announce it has made a significant addition to the coverage available to members of our Liability Program. We have purchased an independent policy, specifically designed to extend to pollution conditions (with certain exceptions) resulting in damage to others from contaminant release associated With your daily operation and conduct of business. In addition, it will provide some protection for your property. The pollution coverage is completely separate and distinct from the coverage afforded under the MMIA's Liability and Property programs. The MMIA Liability Program is in a very sound financial position, as was noted in the 2006 renewal materials. Therefore, the pollution coverage will be added without any premium adjustment to the membership. The annual cost will be adsorbed in the operating expenses of the Program. As you know, most pollution conditions are excluded from coverage under the MMIA's Memorandum of Liability Coverage and the MMIA's Property Program coverage documents. To prevent any confusion, it should be clearly understood that the new pollution coverage does not diminish or otherwise impact the existing exclusions applicable to the Liability and Property Programs. The new pollution coverage stands alone, uniquely separate, providing coverage by occurrence and event. Here is the important part. While this pollution coverage is available to all members of the Liability Program, to obtain this coverage you must complete a pollution information application (many of you responded to our application requests made earlier this year) and provide further confirmation of your properties schedule immediately. The pollution coverage will only be afforded to properties included in your "pollution property schedule". MMIA will maintain a separate schedule of properties for pollution coverage. Members in the MMIA Property Program - we will use your existing property loss schedules as a starting point to build the Pollution Coverage Schedule. However, member properties not specifically scheduled under the Property Program must be separately identified to be covered under this pollution policy. For those liability members not in the Property Program (and why is that anyway), you will only receive this pollution coverage if you provide a complete schedule of properties for pollution coverage. Because pollution could occur on any of your properties, it is imperative that you identify all real property, even if you have no personal property to report and cover. All municipally owned real property must be scheduled to be eligible for this important pollution coverage! P.O. Box 6669, Helena, Montana 59604-6669 (406) 443-0907 In MT: 1-800-635-3089 Fax (406) 449-7440 So that this is clear, the MMIA must know what and where the covered property is. All real properties owned or in the possession of each Member of its Liability Program, including vacant lots; parks & ponds; properties in adverse possession or otherwise seized; all properties with or without improvements must be identified. If it is not specifically on the Pollution Property Schedule, it is not covered: (NOTE: You not will be assessed additional premium under the Property Program for property loss coverage. The properties on this pollution schedule are separate & distinct). Some members have commented on their perceived lack of exposure to pollution loss. They may have overlooked their community water supply, sewer systems subject to backup, old pre- existing land fills or dumping areas, or annual spraying and painting operations. Swimming pool operations represent a unique exposure because you have hazardous chemicals to deal with. It should be noted that coverage for specific situations Will be controlled by the language in the Pollution Policy. It is important that the appropriate officials, employees, and representatives of the City of Laurel read and understand the policy, its coverages and requirements, its exclusions, and its limitations. In many instances, things like water wells and lagoons or property like old tanks; underground sewer & water lines; streets, roads & alleys; abandon property; etc. have been left off of property schedules. As property owners, it is the sole responsibility of the City of Laurel to make all declarations for coverage. You will be receiving a 'Request for Information packet' in the near future. It will identify properties currently on record with the MMIA, along with further detailed pollution program information. You must respond quickly to properly perfect coverage under the new pollution policy. You will have questions and I'm here to help find answers. Please call me @ (800) 635-3089. Sincerely, ~'ohn D. Creig..--~ Property Program Manager O:~JCraig~Polluflon C~ Lb'August20O6.doc 2