When AIG introduced the “Eagle” program in the early 2000’s, it was the first of its kind. The insurance carrier combined the General Liability (GL) and Pollution Legal Liability (PLL) policy to eliminate coverage discrepancies between standalone GL and PLL policies. They also offered excess and primary auto coverage. Prior to its creation, companies had to purchase separate policies that often came from different insurers.
The combination of coverage led to other insurers adapting the same model, driving down the cost of coverage due to competition. Companies with chemical and manufacturing risk bought into AIG’s program and even organizations with nominal pollution risk found the program to be as competitive as their standalone GL program.
As the popularity of the program grew, Chub, ACE, Ironshore and Zurich were some of the first carriers to mimic AIG’s model. Other carriers followed where many of the programs were started by former AIG Eagle underwriters and management.
With big new business goals, these new entrants created huge pricing and coverage opportunities for companies in the early 2010s. But it was too good to be true. Losses started to outweigh premiums and several programs were restructured or shut down, causing companies to return to AIG, the largest player and originator of the program.
Lockton’s Kansas City office manages several different accounts in the combined GL and PLL arena where they work hand in hand with their Pollution Consultant Matt Pateidl. The Lockton team has seen a flat to slight rate increase on average renewals due to underpricing of policies in the past eight years. These renewals are different than those in the soft standard market.
Finally, while AIG has made no change to the Eagle program, in 2016 they stopped writing pollution coverage. They have made enhancements that are related to professional liability, product recall and blanket location coverage.