AIG Environmental Risk Assessment Audits

Farallon has conducted environmental risk assessment audits for AIG Insurance to identify environmental risks and liabilities associated with the operations of a variety of small- to medium-sized businesses for development of environmental insurance coverage costs. The businesses have included regulated and non-regulated operations such as industrial manufacturing and storage, bulk marine fuel storage, chemical blending, container shipping, seafood processing, asphalt plants, and lumberyards located in Washington, Oregon, and Alaska. Farallon coordinated on-site inspections with the owner/operator to evaluate existing operations, reporting requirements, waste-handling practices, and environmental management practices. The audits have identified potential environmental liabilities and risks that could affect insurance coverage costs. Farallon met with each of the owner/operators to discuss BMPs for ongoing operations, revisions to reporting documents, and overall management practices that would result in decreased potential environmental risk that lowered insurance premiums. Farallon contacted each of the owner/operators 6 months after the audit to confirm that the BMPs recommended were being properly implemented.