This webinar is intended for US audiences. Some insurance products can be granted on a "worldwide" coverage territory basis. From a risk standpoint, the exposures are generally the same based on operations, regardless of location.

This slide is set in case PJR would like to disclaim perceived endorsements of Ross.

eWaste

Insurance

eWaste is growing fast

Insurance cannot move that fast to keep up

e-Stewards 4.4.8: Insurance

The Standard calls for insurance to be "...adequate to cover the potential risks and liabilities."

This is generally accomplished through the interpretation of risk via the audit. This can be, well...risky.

No "off-the-shelf" insurance products

• Total Pollution Exclusion "TPE"
• "Pollutants" and "waste" broadly defined
• Basically everything a processor touches
• A Building block of all liability policies
• This is why general liability just won't cut it

4.4.8 (a)

We should not get hung up on the "nature" of their operations. From a risk perspective,they are in the waste stream, regardless of the degree of processing.

4.4.8 (b) is very broad...so what is the Standard saying?

• "environmental pollution"
• "occupational health and safety"
• "other emergencies"
• "contractual liability"
• "data privacy breaches"

Both phrases "environmental pollution" and "occupational health and safety" can mean many things. Also, according to whom?

"Contractual Liability" is not an insurable exposure...unless the exposure was already there.

Generally, Professional Liability, or E&O, is NOT the best way to insure against data and privacy breaches.

4.4.9 Site Closure & Financial Surety
This is looking for a "financial instrument"
to "cover costs...of site clean-up."

This is where we have to understand what is being asked of an insurance company. You could be asking them to clean-up something they never intended to cover, simply because your audit found you don't process "HEWs."

Remember the Total Pollution Exclusion?
This is where general liability policies will fail to respond. Despite the fact that an audit found no need for the environmental cover, no other insurance will work to cover clean-up or bodily injury and property damage.

What is a "Financial Instrument?"

• there can be many options (7 in CA)
• some are not available or not easy to obatin
• site pollution polices are most often used
• site pollution policies come in many different forms
• do they cover first and third party? how are they triggered?

Site Pollution Liability Concerns

• sudden and accidental vs. gradual
• both 1st and 3rd party cover
• on and off site clean up costs
• discovery or governmental trigger
• what about non-owned sites

Sudden & Accidental vs. Gradual:
How did it occur and what type of condition is the policy going to cover?
Ideally, BOTH.

1st and 3rd Party Cover:
1st party cover is going to make the processor whole 3rd party cover is going to repay the neighbors or public. Again, both can be had and are ideal.

Off-Site Clean-up costs will extend the financial backing to areas outside the processor's premises.

Coverage Trigger: When will the policy respond?
Governmental Mandate or Discovery of condition?

Non-Owned Disposal Sites are an exposure that all processors have but most do not think about.

Refurbish, Resale, Recycle

• Joint and Several says 'you touch it, you own it'
• You are now "Sony" or maybe "Dell"
• Batteries: Ship, Handle, Label and Store
• Contractual obligations for OEMs
• What does it mean to be a "PRP?"

Considerations for Enterprise Risk Management

• Errors & Omissions
• Workers Compensation
• Transportation Pollution Liability
• Products Pollution Cover
• Other Concerns to address?

Ross Fields, CLCS