oEPA
United States
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9477.04(84)
TITLE: Insurance Coverage Limits
APPROVAL DATE: n-20-84
EFFECTIVE DATE: n-20-84
ORIGINATING OFFICE: office of Solid Waste
Q FINAL
D DRAFT
STATUS:
I 1
A- Pending OMB approval
[ ] B- Pending AA-OSWER approval
f ] C- For review &/or comment
[ ] D- In development or circulating
REFERENCE (other document!): headquarters
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
-------
PARTS 264 AND 265 SUBPART H - FINANCIAL RESPONSIBILITY
DOC: 9477.04(84)
Key Words:
Regulations:
Subject:
Addressee:
Originator:
Source Doc:
Date:
Summary:
Insurance
40 CFR 264.147, 265.147
Insurance Coverage Limits
Charles W. Shipley, 1 Williams Center, Suite 1770, Tulsa, OK 74172
George A. Garland, Chief, Financial Responsibility and Assessment
Branch
#9477.04(84)
11-20-84
Under 40 CFR 264.147 and 265.147, all owners or operators of hazardous
waste management facilities must demonstrate financial responsibility for sudden
accidental occurrences in the amount of $1 million per occurrence and $2 million
annual aggregate. In addition, the owner or operator of a surface impoundment,
landfill, or land treatment facility must demonstrate financial responsibility
for non-sudden accidental occurrences in the amount of $3 million per occurrence
and $6 million annual aggregate.
Two separate insurance policies, one to cover sudden accidental occurrences
(with limits of at least $1 and $2 million) and one to cover non-sudden accidental
occurrences (with limits of at least $3 and $6 million), may satisfy the liability
coverage requirements. Also, a single insurance policy, covering both sudden and
non-sudden accidental occurrences, may satisfy 'the liability coverage requirements
if the policy provides coverage for at least the sum of the sudden and non-
sudden minimum limits (with limits of at least $4 and $8 million).
-------
9477.04 (8
N07 2 0 :
X
I
">
.
<_l.
!-••
Charles W. Shipley oa
1 Williams Center 2
Suite 1770 ^
Tulsa, OK 74172 o.
' CO
Dear Mr. Shipley: w
This letter is in response to your question to ny staff jS
regarding insurance coverage limits required under the KCRA ^
Subpart H regulations, t-
As you know, 40 CFk 264.147 and 265.147 require all owners iŁ
or operators of hazardous waste management facilities to demon- oo
strate financial responsibility for bodily injury and property **
damage to third parties caused by sudden accidental occurrences
in the amount of $1 million per occurrence and $2 million annual
aggregate. In addition, the owner or operator of a surface
impoundment, landfill, or land treatment facility must demonstrate
financial responsibility for bodily injury and property damage
to third parties caused by nonsudden accidental occurrences in
the amount of $3 million per occurrence and $6 million annual
aggregate. An owner or operator has several options to satisfy
this liability coverage requirement.
An owner or operator who chooses to meet both the sudden
and nonsudden requirement solely through the purchase.of insurance
may obtain a single insurance policy to cover both sudden and
nonsudden accidental occurrences. This policy, however, must
provide coverage for at least the sum of the sudden and nonsudden
minimun limits. In other words, such a policy must provide
coverage for at lease $4 million per occurrence with an annual
aggregate of at lease $8 million. The liability limits
of $4/$8 million are consistent with our regulations and provide
adequate coverage. Of course, an owner or operator may satisfy
the liability coverage requirement by obtaining two separate
insurance policies, one to cover sudden accidental occurrences
(with limits of aŁ least S1 and $2 million) and one to cover
nonsudden accidental occurrences (with limits of at least $3
and $6 million).
-------
We are aware thac chis option Is not specifically addressed
in §§ 264.147 or 265.147 of the regulations. The required
wording for the endorsement and the certificate of insurance
(SS 264.151 (i)(1) and 264.151 (j) (1)) , however", states that:
The coverage applies at [list EPA Identification
Number, name, and address for each facility] for
[insert "sudden accidental occurrences," "nonsudden
accidental occurrences," or "sudden and nonsudden
accidental occurrences"] (emphasis added).
If you have further questions, please feel to contact me at
(202) 382-4761.
Sincerely,
George A. Garland
Chief, Financial Responsibility
and Assessment Branch
------- |