XL Insurance, the global brand used by member insurers of XL Capital, has entered into an agreement with program administrator, JGS Insurance, to offer stand-alone environmental insurance coverage to members of JGS Insurance's Preferred Property Program, a risk purchasing group of condominium, homeowners and community associations.

XL Insurance’s environmental policy, underwritten by Greenwich Insurance Company, provides coverage for remediation expense, bodily injury and property damage, and legal defense for pollution conditions resulting at or from the insured location. Greenwich Insurance Company is one of the member insurers of the XL Capital group of companies.

Rich Corbett, head of the global environmental insurance unit at XL Insurance, said: Community and homeowner associations may also find themselves liable for pollution incidents that can result from using pesticides and fertilizers for lawn maintenance, storing pool chemicals, various construction activities and other property management activities. Pollution incidents occur less frequently than other loss events, but when they do occur they often carry an expensive price tag.