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The environmental marketplace has evolved during the past few years to better meet the needs of insureds. Increasing capacity and broadening coverages continue to complement standard lines of coverage while filling in the gaps from traditional exclusions. That has not and will not change with the exit of a single carrier. AIG announced that as of Feb. 1, 2016, it will no longer be writing monoline site environmental liability/pollution legal liability (PLL) coverage. To help you understand how AIG’s announcement will affect your business, we offer these FAQs.

Are any AIG policies being cancelled immediately?
No. AIG is committed to servicing all policies currently in place until the expiration.
No Cancellations

What current policies will not be renewed?
AIG is nonrenewing 100 percent of its PLL book of business effective at the expiration of those policies.
Nonrenewal of policies

If you have a PLL policy with AIG, what should you expect?

  • Nonrenewal notices will be sent out on existing policies to comply with policy requirements. You will receive these directly from AIG.
  • Effective immediately, no new PLL business will be underwritten.
  • Extensions are being granted on upcoming renewals within the next 60 days.
  • Midterm endorsements, including acquisitions of new locations, will be issued on a timely basis per the terms and conditions of the policy.
  • There are no plans to attempt to cancel any policies for any reasons other than the standard language in the policy.
  • If you have a multiyear term policy and want to cancel the policy with AIG early, AIG is willing to work with Lockton on a case-by-case basis regarding return premium so we can move the policy to another carrier.

Which AIG environmental policies can be renewed?
AIG’s decision does not impact its global-based environmental policies, tank guard, combined general and pollution legal liability (EAGLE), and contractor’s pollution liability (CPL) policies. However, some policy terms may change, making the placement less desirable.

How should we determine whether or not to move our policies to another carrier?
This decision should be discussed with your Lockton team members. They will be working in collaboration with the Lockton Environmental Practice to help assess which carrier will best meet your business needs.

“The exit of AIG does not represent the viability of the environmental marketplace.”

The exit of AIG does not represent the viability of the environmental marketplace. There are more than 20 carriers with comparable forms that Lockton has been and will continue to work with as we broker this highly specialized line of coverage. Often written as a long-term solution to specific needs, PLL policies will continue to be a valuable risk management tool.


For additional resources, Lockton’s environmental practice can offer further support:

Lockton Environmental Practice