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Commercial Agriculture Faces Emerging Environmental Exposures; ACE Responds with New Pollution Liability Coverage

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ACE Group today announced the introduction of ACE Agriculture Premise Pollution Liability coverage — a new, best-in-class product that provides limited pollution liability protection in conjunction with ACE’s Agribusiness Commercial General Liability policy. The expanded coverage offers commercial companies that process and distribute agricultural products with pollution-liability protection for sudden and accidental as well as gradual environmental liabilities, such as pesticides, chemicals, fertilizer, and other hazardous materials.

The agriculture industry interacts more closely with the natural environment than almost any occupational group. According to the United States Department of Agriculture, the industry contributed $775.8 billion to the U.S. Gross Domestic Product (GDP) in 2012.1 The addition of this environmentally-focused product from ACE provides insurance and risk management solutions to off-set emerging exposures.

“As sophisticated as the commercial agriculture industry is today, environmental risks and regulations have become just as complex, leaving companies susceptible to catastrophic pollution losses,” said Philip Twietmeyer, Senior Vice President, ACE Agriculture. “In recognition of the need to mitigate emerging pollution exposures, we are pleased to be able to provide our clients and brokers with this new, enhanced admitted coverage for pollution liabilities.”

Key features of the optional Agriculture Premise Pollution Liability coverage include:

  • Minimum Premiums starting at $1,500
  • Limit of Liability Options – $250,000 per claim/$250,000 aggregate and $500,000 per claim/$500,000 aggregate
  • First and third party coverages for new pollution conditions on a gradual basis, including:
    • Bodily injury and property damage to the personal property of a third party on, at, or under a covered location
    • Bodily injury, property damage, and remediation costs arising out of pollution conditions migrating from a covered location
    • Damages and claim expenses resulting from a government action arising out of a pollution condition on, at, under, or migrating from a covered location
    • Coverage for emergency response costs arising out of pollution conditions on, at, under, or migrating from a covered location
  • Access to report pollution emergencies via ACE ALERTSM
  • Dedicated environmental claims specialists
  • Backed by ACE Group’s financial strength and excellent reputation

To read more detail about the coverage expansion including conditions, click here. Insurance is provided by insurance companies within ACE Group. All products may not be available in all jurisdictions. The product information above is a summary only. The insurance policy actually issued contains the terms and limits of the contract.

ACE Environmental Risk, is a division of ACE USA, and part of ACE Group. ACE Environmental Risk offers a full range of environmental liability solutions designed to minimize bottom-line impacts, and provide hands-on management for those liabilities. For more information about ACE Environmental Risk and its range of products and services, please visit our website.

ACE’s agriculture businesses, Rain and Hail, and ACE Agribusiness, headquartered in Johnston, Iowa, is one of the largest providers of multi-peril crop insurance and a leading provider of crop hail and commercial agricultural insurance to farmers and businesses in the United States and Canada.

About ACE Group

ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE:ACE) and is a component of the S&P 500 index. Additional information can be found at www.acegroup.com, or follow ACE on Twitter, https://twitter.com/ACEGroupNA.

1 http://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy.aspx

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