American Wholesalers Underwriting, a program administrator, has added environmental insurance coverage in its Wholesalers' Insurance Program (WIP), an insurance program targeting the durable and non-durable goods wholesale distribution industry.

American Wholesalers Underwriting has partnered with XL Insurance’s Environmental group to create an environmental insurance program specifically designed for wholesalers providing coverage for pollution liability and clean-up expenses including remediation expense, bodily injury and property damage, and legal defense for pollution conditions resulting at or from an insured warehouse or distribution center.


The common environmental risks faced by warehouses and distribution centers include, spills or leaks during the loading or unloading of materials from trucks and railcars; contamination as a result of a fire at the facility; waste from on-site vehicle or forklift maintenance and storage; and gradual leaks from containers stored at the facility.


American Wholesalers said that WIP is an insurance program designed to meet the needs of durable, non-durable and food distribution industries. In addition to environmental insurance coverage, XL Insurance’s North American Program group provides WIP with property, inland marine, auto, general liability, and umbrella coverages with various industry specific extensions. Workers’ compensation is also available.


John Shea, COO of American Wholesalers Underwriting, said: Warehouses and distribution centers are often tasked with storing or moving products that could pose pollution risks. Environmental incidents tend to be high cost events that can severely impact a wholesaler’s profitability.


“This program offers wholesalers an affordable option to enhance their environmental risk management efforts with insurance that can help quickly and effectively address an environmental incident should it occur.