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Senior Vice President
National Environmental Practice Leader
Beecher Carlson, San Francisco
rcraig@beechercarlson.com

A Prized Partner

Last year, Rick Craig closed a two-year process on the largest mixed-use brownfield development in Pennsylvania, the 300-acre site of a former chemical plant built in the 1800s. The deal was made challenging because insured parties included a multi-billion dollar foreign company and a local developer. Although the companies formed a combined entity to own the site, both parties had much different risk profiles.

The financing of the project, which included 900,000 square feet of commercial and retail space, 200 homes, 125 apartments and a local municipal building, depended on Craig's ability to secure a pollution legal liability policy. One of the parties raved about Craig's background, including eight years of environmental consulting and real estate work prior to his 10 years of brokerage experience. "He understands the environmental world better than anyone I've met in the insurance world," said the client. "He shined on this project."

The developer for the project, who admitted environmental insurance for the company had previously been handled by others or was secured as an afterthought, said Craig was the consummate professional, taking the time to explain each step of the process. "We had never bought a $45 million pollution policy," said the developer. "We're not easy to work with because our partners are incredibly sophisticated and we're incredibly uneducated."

The developer said he was "elated" and now views Craig as a valued partner. "We went from thinking we don't even need this relationship to we can't do anything without him."

Senior Vice President
Wells Fargo Insurance Services, Phoenix
bill_harvard@wellsfargois.com

Simply "The Best"

For some clients, like one at an REIT with $3 billion in assets who's used Bill Havard on an ongoing environmental claim, it's simple. "We only use one guy, because he is the best," she said. A theme echoed by other clients is Havard's level of knowledge and his responsiveness.

A corporate insurance lawyer said what sets Havard apart is "He's the most responsive of all brokers that I deal with." The lawyer recalled a billion-dollar deal of franchised properties, some of which were former gas stations. Havard executed a complicated categorization of the 300 sites involved, ensuring the due diligence for the underwriters was completed quickly.

For a risk manager at a public transit company, Havard pulled together some innovative environmental terrorism coverage last summer. The product is written as environmental insurance that does not exclude terrorism, which normal environmental policies would do.

"It's something we have wanted for a long time and no one offered it. It was the one exposure to terrorism that we couldn't get covered," the risk manager said.

An urban redevelopment and property management company worked well with Havard on environmental issues prior to construction, but began to experience problems with its permanent book that gave the client "liability heartburn." It was time for an overhaul.

With a permanent portfolio of 14,000 units at 130 sites in 18 states, the client said Havard tackled "without question the most challenging thing we've ever done together."

"He literally went through the records for each of the sites," said the client. "He's tireless."

Senior Vice President
Marsh, Houston
thomas.e.swartz@marsh.com

Dirty Does It

In a profession where egos can be inflated more than the Goodyear blimp, it can be difficult to find a broker willing to do the dirty work.

One client of Tom Swartz's, a risk manager for a public transit authority constructing several light rail projects, said she admires his willingness to roll up his sleeves. The rail projects had been years in the making, with a plethora of environmental asset reports and surveying data conducted. Swartz himself compiled the information necessary for the carriers to make their quotes.

"I remember him sitting here on my computer for hours, copying it on disks, doing a lot of that grunt work so that he could give the carriers exactly what they needed," said the risk manager. Working with the carriers last year, Swartz was able to take advantage of an extremely competitive bid.

"Even when it got down to the final proposal, Tom went back again and got us even better terms and even better pricing," she said. The client ended up with a quote from one of the carriers substantially below original target pricing. The beauty of the quote was that it included an extremely aggressive extended reporting period that would kick in as the various phases of the project got completed--a crucial detail for the client.

Also crucial to the client was Swartz's ability to talk the talk. The construction involved acquiring many properties requiring remediation and Swartz, an engineer by trade, proved he could "speak that language" with the environmental engineers and remediation contractors. He even conducted an "Environmental 101" class for the risk management department.

Managing Director
Aon, Jericho, N.Y.
howard_tollin@ars.aon.com

A Clone-able Character

"He's phenomenal. I wish there more Howards in the world," said one Howard Tollin client, a catastrophe consultant. The client has been especially impressed with Tollin over the last year, as he secured crucial coverage even as the company suffered the death of its CEO and significant financial hardship due to a lack of catastrophe work. "We're one of just a few companies in the country that has a per occurrence policy for mold," said the client. "And we're one of five companies in the country covered for weapons of mass destruction and anthrax. Without a decrease in coverage, he has saved us at least $300,000."

Another colleague, an environmental lawyer who has worked with Tollin on policies for dozens of massively contaminated properties, said Tollin is "without a doubt the most experienced insurance broker in environmental."

A client in the gas station business raved about Tollin's notable work developing a new pollution liability program for his company. "In today's day and age, if you're privately held, you are only as good as the insurance you have in place," said the client. "You can really jeopardize your entire livelihood and Howard makes sure you don't do that."

One of Tollin's ongoing high-profile projects involves working with developer Donald J. Trump on a bankruptcy restructuring plan for the New Jersey Meadowlands golf course and housing development. The development, which previously hit trouble due to gaps in environmental insurance, among other issues, spans four garbage dumps over 785 acres.

Senior Vice President
Willis HRH, New York

Nice Guys Finish First

Whose clients would go so far as adopting their broker? "He is the nicest human being in the world. I'd love to have him as a son," said the risk manager of a high-powered, New York real estate company.

Wagar placed for her what is understood to have been the largest risk transfer program in the environmental insurance market last year, for the World Trade Center site. The risk manager said his work was "extraordinary," considering the $6.5 billion construction project scared off underwriters and capacity in the area had already been drained by the Port Authority. She was under stringent requirements to obtain a $50 million policy on each tower. One broker told her the most insurance she'd be able to obtain would be $25 million total. Her decision to hire Wagar paid off.

"At the end of the day Anthony got us over $200 million of coverage," said the risk manager. "It was $100 million for contractors' pollution and $100 million for site pollution, but from the same carrier, which is not easy. He blew us away."

For another construction project in Lower Manhattan, the risk manager worried the limits for the demolition contractor and asbestos abatement contractor were too minimal and she approached Wagar about buying contingent excess abatement coverage--a concept that had not previously existed. Nonetheless, Wagar obtained a difference in conditions excess policy for abatement and pollution that covered the client's interest above what the contractors had secured. "He did something that had never been done before, got huge limits for me, and did it for an extraordinarily low amount of money," she said.

Senior Vice President
Willis HRH, Chicago
max.west@willis.com

The Unstoppable Closer

When other brokers can't get the job done, Max West has earned a reputation as a closer. "Max is the get-it-done guy," said one client. "He makes a lot of aggressive promises, but somehow he always delivers." This client at an REIT said last year, during the purchase of an environmentally contaminated site, West secured excess indemnity coverage with cleanup of known conditions. "The insurance was how that deal got done," said the client. "It's amazing coverage and we'll make a wheelbarrow-full of money."

Another client in 2008 was a private equity firm attempting to sell a semiconductor company it owned in Germany which had retained an environmentally contaminated property. The buyer wanted the private equity firm to continue ownership of the property and retain all liability for it. "It was a nonstandard program, all the environmental docs were in German, the financial crisis was setting in and getting underwriters in London to concentrate on a measly $10 million liability policy was pretty difficult," said the client.

Calls to the client's house broker at Willis, Marsh and other firms hit dead ends. Once hired, West was able to bring the exhausting six-month process to a close. He maintained his optimism while juggling time zones from San Francisco to Germany.

"The potential to lose momentum on this was huge," said the client. "I credit Max with keeping it going. We ended up making $100 million profit on this sale, which went through Sept. 30, right before the market melted. This would have totally fallen apart if it wasn't for this environmental policy."

Aon
Senior Vice President
Miami

Marsh
Vice President
Los Angeles

Wachovia Insurance Services
Senior Vice President, National Environmental Practice Leader
Washington, D.C.

Aon
Managing Director
San Francisco

Marsh
Managing Director
Philadelphia