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Senior Vice President
Alper Services, Chicago

A Brownfields Champion

Converting vacant manufacturing sites to 21st century uses incurs untold risks in the area of environmental liabilities, and Todd Adams, senior vice president of Alper Services in Chicago, has developed the expertise to make all the parties involved comfortable with them.

Ray Stillwell, a partner in St. Louis-based Green Investments, recalled that his first encounter with Adams resulted in not only an overall favorable impression of his new broker, but the best package of coverage available.

"Part of our purchase agreement with the sellers of these sites is to indemnify them from environmental liabilities. And we do that with rather customized environmental liability policies and letters of credit," he said.

Adams, a 15-year industry veteran, has become an important member of the Green team in the arduous negotiations between the buyers and sellers, Stillwell said.

"There is a lot of work involved in reviewing all of the environmental reports and getting an understanding of the known environmental conditions, and the risk that there may be or unknown situations," Stillwell said.

For several years, Adams had to, in Stillwell's words, "earn the business by competing out the bids each year."

"Todd would always come in with good products at competitive prices. So, once we got a comfort level with him, we decided we did not want him wasting time competing when we really wanted him focused on getting the best deal," he said.

Managing Director
Arthur J. Gallagher, Norwalk, Conn.

Other Brokers Don't Come Close

Many a multimillion-dollar, private-equity deal has hinged on the critical issue of whether the buyer or seller will be responsible for the innumerable environmental liability issues that a property can amass through the years.

Now celebrating his 20th year as an insurance broker, Edward Babington, or "Sam" to his friends and colleagues, has the confidence of his clients that he will produce a fair solution for both the buyer and seller. And more importantly, everyone will be keenly aware of their respective responsibilities.

"He seems to know our business better than we do in these matters," said the head of one major private-equity concern. "We have used other brokers in the past, and it was not even a close call."

The executive recalled one particularly thorny set of negotiations in which Babington came up with an unusually creative so-called bridge product that "filled in the gaps between the buyer and seller so that the deal could proceed."

The expertise exhibited by Babington, a managing director with Arthur J. Gallagher, goes beyond environmental issues to general financial analysis capabilities. Among his most significant accomplishments was creating a complex program for a company about to go public that had to cover past tail liability and workers' compensation escrows.

Once the specific issues were identified, Babington was able to bundle liability exposures and reduce the amount of collateral needed to insure the client's workers' comp exposure.

Senior Vice President
Aon, West Palm Beach, Fla.

Broker Made for Her Environment

Jeff Wood, vice president of global risk management with the packaging company Greif Inc., praised Veronica Benzinger, senior vice president with Aon, as "one of the best" brokers he's every worked with, and he did so without even a hint of equivocation.

Wood recalled a number of instances in which the broker's savvy and diligence provided a means to avoid impasses in acquisition negotiations and other issues related to the potential risk involved in the transfer of environmental liabilities. In particular, he recalled a deal that almost doubled the company's size. The potential acquisition was sensitive to any physical environmental testing of their sites. Greif was unwilling to assume unknown risks and was introduced to Benzinger while exploring insurance risk transfer options.

Benzinger coordinated an effort that resulted in the placement of a $350 million policy covering unknown conditions at more than 140 global locations.

A significant amount of the policy was manuscripted, which allowed the policy to be tailored to track directly with the terms of the purchase agreement, Wood said.

With nearly three decades of experience, Benzinger as vice president has now moved into the leadership ranks within Aon's Environmental Services Group and often acts as an unofficial mentor to younger members of the team.

Benzinger's commitment to the environment extends to her personal life and her passion for scuba diving. She often takes part in coastal and inland waterways cleanup efforts, along with coral reef restoration projects.

Vice President
HUB Intl. Northwest, Bothell, Wash.

Hustling to Expose Clients to Underwriters

When you connect with an insurance broker who scours the globe for 20 markets instead of just a couple, it is amazing how new worlds open up to you and your business.

Seattle-area construction executive John Salinas discovered that critical piece of information when he was introduced to Chad Epple and saw how much a little hustle goes a long way in fattening the bottom and top lines.

"In the past three years up to meeting Chad, we had only been brought out to three markets," he said. "And that was very frustrating knowing that we were not being properly put out to market."

Together Salinas and Epple drilled down to the nuts and bolts of what kind of work Salinas' company would be doing that year in order to structure general liability coverage in the most advantageous manner.

In addition, Epple was able to secure surety coverage of up to $25 million, "which was double what anyone was able to do for us in the past," Salinas said.

Epple, a vice president with HUB International Northwest, takes pride in the fact that, with his wide client base in the construction industry and broad experience on the underwriting side of the business, he can provide a depth of service that other brokers may not be able to, such as advising on lines of credit negotiations.

Senior Vice President
Beecher Carlson, San Francisco

Carrying Experience from Both Sides

Kyle Strand's environmental expertise and diligence allows him to go that extra mile for clients, such as Phoenix-based Cole Real Estate Investments. For a portfolio of more than 500 retail properties that has now more than doubled in size, Strand designed a program with one carrier that automatically adds properties, except in those cases where there are unique issues.

"Kyle becomes our advocate in these situations, working with the underwriter and the consultant who conducted the environmental site assessment and Cole's legal team to get the best outcome for the company," said Sharon Johnson, director of risk management for Cole.

Moreover, Strand's drafting of a mold maintenance and remediation manual should help keep losses to a minimum in this troublesome area, Johnson noted.

Strand's three years of brokerage experience is backed by seven years on the other side of the table as an underwriter for Liberty Mutual and Chubb, giving him perspective when issues arise, such as when publicly traded companies must report insurance liabilities to the SEC.

Strand, senior vice president for Beecher Carlson, recalled the instance of one such company that had two large claims looming after years of virtually no loss history. Obtaining renewal was further challenged by the fact that very little environmental due diligence had been done by the previous broker. In the end, Strand obtained coverage at 20 percent less than what the client had allocated, not only for currently insured properties but for new properties coming into the program as well.

Senior Vice President
Willis, Chicago

The Epitome of Execution

While still in his 30s, United Kingdom native Max West has made quite a name for himself negotiating the stateside complexities of environmental liabilities for companies. One chemical company executive noted how West put the hours in with him even before negotiations started to be certain he grasped the different environmental issues that the more than 250 properties in question possessed.

"Max did a really good job of carrying our story to them so that we could get an indication of what could be insured and what could not," the executive said.

Valerie Baxa, vice president for a Chicago-based First Industrial Real Estate Trust, agreed that West is the one to turn to for environmental coverages, especially when they must be obtained yesterday. "I assume that is based on his strong rapport with both his clients and the underwriters," she said. "Max is epitome of execution. We have come to rely on him, and he has never missed the mark."

West's work was instrumental in a town in the Midwest being able to hold on to a crucial manufacturing facility. West, senior vice president with Willis, customized an environmental insurance package that would pay for cost overrruns above $4 million on environmental issues up to $8 million over the 10 years of the policy.

This enabled the town to save more than 1,500 jobs and be able to stay within its environmental remediation budget. West regularly educates colleagues and clients on new environmental issues and how insurance may address those issues.

Category: Environmental

A Leader in Making Others feel Secure

Max West took it upon himself to help secure the selection of Connersville, Ind., as the manufacturing location for the first automobile built specifically for use by police officers.

The proposed site had brownfield pollution issues and the city could not afford another penny of remediation costs. The umbrella policy created by West saved the day, as well as helping to keep 1,500 jobs in the state of Indiana. The policy capped the cost of remediation at $4 million and anything over that up to $8 million over the next 10 years would be covered by insurance.

West, based in Chicago, also acts as a go-between for companies seeking environmental remediation partners and regularly educates his colleagues and prospects on new developments in environmental risk issues. In addition, he's a board member of the Friends of the Chicago River, which is engaged in trying to clean up that high-profile waterway.

West appeared for three straight years on Willis' Exceptional Producer Council. The holder of a bachelor's degree with honors in environmental management from the Southampton Institute in England, West's academic background has dovetailed nicely with his professional career.

West began his insurance career as an environmental underwriter with AIG--now Chartis--and spent six years in the Marsh environmental practice before moving on to Willis in 2006. West's work experience has placed him on three continents, Europe, North America and Australia, but he proudly and humorously bills himself as "Max West--America's Guest."

One client, Valerie Baxa, president of First Industrial Real Estate, said of him: "Max is continually able to secure the best coverage, options and pricing for environmental insurance products.''

Assistant Director
Aon
Chicago

Senior Vice President
Beecher Carlson
Atlanta

Senior Vice President
Willis
Radnor, Pa.

Managing Director
Aon
San Francisco

Managing Director
Marsh
Philadelphia