Environmental Insurance: No Longer Why, But Why Not? For clients dealing with chemicals, oil, gas or hazardous materials, the reasons that independent agents would advise commercial clients to purchase environmental or pollution coverage as part of their overall insurance strategy are obvious.

However, say those agents who specialize in this niche product, an increasingly litigious atmosphere and an expanding list of contaminants makes it increasingly more important for agents to discuss the insurance protection with their middle market clients.

"The better part of my day is spent speaking to clients about why they are not purchasing the coverage," said Ken Anderson, managing director of Arthur J. Gallagher Environmental Risk and Insurance, part of insurance broker Arthur J. Gallagher, based in Chicago. "In general, anyone who has an investment in real property has an environmental exposure."

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