POLLUTION LEGAL LIABILITY (PLL)

Pollution Legal Liability (PLL) insurance provides coverage for a variety of pollution conditions that can result in legal liability and expense for mine owners. The insurance is designed to respond to claims for cleanup costs, bodily injury and property damage that occur as a result of either pre-existing or new pollution conditions. The property damage definition normally includes natural resource damages as well as diminution in value of third party property regardless of actual physical injury to third party property. PLL insurance also includes coverage for legal defense costs as well as regulatory agency changes in environmental standards or cleanup responsibilities.

Many of our clients have used the PLL coverage to:

• Support or replace indemnity agreements in Mergers or Acquisitions.
• Satisfy Lender or Stockholder concerns related to unknown environmental liability.
• Protect the ongoing value of real estate.
• Protect their balance sheet against uncertainties associated with regulatory changes and environmental matters.

RECLAMATION BOND PROGRAM

The JCH underwriting process includes a detailed review of the reclamation plan and associated cost estimates that describe the reclamation obligation. Specifically, we review the operator’s internal cost estimate for reclamation work, the life-of-mine plan, and the timing of the reclamation expense. We then develop an insurance policy that provides coverage for future reclamation work and support for the bonds. Should the operator’s financial assurance obligations be increased by the agency, the insurance policy is designed to support the additional bond obligation, thus affording the ability to secure an increase in surety bond capacity without having to post additional collateral.

JCH Environmental Insurance has provided financial assurance and insurance packages for some of the most complex mine operations and transactions in the industry. Our qualified team has the skill set necessary to identify the risks associated with our clients’ operations, and develop successful risk management programs to help our clients control costs and limit risk.

Through our senior staff of geologists, mining industry consultants, legal experts, brokers and underwriters, all of whom are experienced in mine operations, reclamation and closure – your company partners with our highly-specialized industry professionals. Because of our experience, industry knowledge and insurance company relationships, JCH can develop innovative and prudent insurance programs to achieve your company’s financial objectives.