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Basic Principles of Environmental Insurance


Ensure you have the appropriate coverage with your environmental insurance.

Environmental pollution and contamination and other issues involving environmental damage and impairment arise frequently in business operations worldwide. In addition to major environmental catastrophes such as the Deepwater Horizon Gulf of Mexico oil spill and the Fundao mining damage collapse in Brazil, long term operations also have negatively impacted the environment by way of the use and disposition of various hazardous materials and products. Finding ways to insure the risks associated with environmental impacts is challenging and has become more challenging as environmental risks have received greater public attention and grown in magnitude. This topic will help the persons responsible for identifying and obtaining insurance for environmental risks to understand what insurance products are available in the marketplace to cover such risks, and some of the specifics and details of the available types of coverage. The topic also explains the historical context in which environmental insurance coverage has developed and changed over the last 50 years. This material is critical for businesses addressing difficult issues of environmental risks and seeking to identify and implement creative and effective means of transferring and mitigating such risks through insurance.



John D. Shugrue

John D. Shugrue

Reed Smith LLP

  • Partner in the Insurance Recovery Group
  • Affiliate member of the Energy and Natural Resources Group in Reed Smith's Chicago office
  • Practice focuses on representing policyholders in complex litigation and insurance coverage matters involving general and excess liability, OEE/energy package, D&O, product recall, first-party property/business interruption, pollution liability, E&O, cargo/inland transit, and crime/fidelity coverage
  • In addition to wide experience with all major U.S. insurers, has handled litigation, mediation, and arbitration with Lloyd's and other London, European, and Bermuda market insurers
  • Significant representations have encompassed major U.S. policyholders such as Anadarko Petroleum, Castleton Commodities International, Nicor Gas, International Game Technology, Tribune Company, Kraft Foods, and Republic Services, and have involved claims throughout the U.S. and in Canada, the U.K., Italy, China, Brazil, Nicaragua, Japan, and West Africa
  • Has pursued coverage for his clients relating to some of the largest catastrophic events in recent history, including Deepwater Horizon, Superstorm Sandy, Hurricane Katrina, and a massive dam collapse in Brazil

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