Introducing Mosaic's New Hybrid Pollution Solution in the Market
Mosaic Insurance has introduced a groundbreaking hybrid pollution insurance product, designed to support the remediation of abandoned and orphaned oil and gas wells across North America. This innovative coverage aims to de-risk the growing wave of well-plugging projects incentivized by government funding, thus advancing climate change mitigation efforts [1][3][5].
The hybrid pollution policy fills a critical insurance gap by providing coverage certainty for companies involved in plugging, capping, and reclaiming disused oil and gas wells. These wells pose significant environmental hazards, including methane leaks—a potent greenhouse gas—and contamination from toxic chemicals [1][3].
By enabling and supporting these restoration projects, Mosaic’s coverage directly contributes to reducing greenhouse gas emissions and mitigating environmental damage. Such projects align with federal initiatives like the US Orphaned Well Program, which allocates billions of dollars to plug and reclaim abandoned wells under the Bipartisan Infrastructure Law [1][3]. This support helps accelerate the plugging of millions of inactive wells, a major step in curbing methane emissions and advancing net-zero climate targets [1][3].
The product uniquely bridges the gap between traditional Contractors Pollution Liability (CPL) and Control of Well (COW) policies, offering tailored protection to well-plugging contractors and stakeholders. This approach addresses previously unmet liability concerns in the sector, encouraging more investment and project deployment [5].
Mosaic Insurance's environmental team has also developed products for emerging energy-transition initiatives, particularly in the sphere of carbon capture and sequestration (CCS). The company has 13 new environmental risk specialists on its US teams and product specialists across the US and Canada, including in New York, Atlanta, Boston, Philadelphia, Chicago, Boulder, New Orleans, Salt Lake City, Los Angeles, Toronto, ON, and Bermuda [2].
In a strategic move, Mosaic and global broker Aon have entered into an exclusive distribution agreement for the new plug-and-well exit liability product. The product is aimed at project owners, well-plugging contractors, and buyers of carbon credits generated from well-plugging operations [4]. The new SGL form at Mosaic provides primary general liability and a suite of added pollution coverages, making it a comprehensive solution for the sector [6].
Environmental liability is one of the seven lines of specialty business at Mosaic Insurance, which also includes cyber, transactional liability, political risk, political violence, professional liability, and financial institutions [7]. The new product underscores Mosaic's commitment to providing climate-focused insurance solutions that both advance the cleanup of environmentally harmful wells and support broader climate change mitigation efforts [1][3][5].
According to the US Environmental Protection Agency, an estimated two-million inactive, unplugged oil and gas wells are scattered across US states, posing significant environmental and health threats [8]. The launch of Mosaic's hybrid pollution product comes at a critical time, as the industry works towards a more sustainable future.
[1] Mosaic Insurance Launches Hybrid Pollution Product for Orphaned Well Remediation. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-launches-hybrid-pollution-product-for-orphaned-well-remediation
[2] Mosaic Insurance Expands Environmental Risk Specialist Team. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-expands-environmental-risk-specialist-team
[3] Mosaic Insurance Announces New Line of Professional Liability Products for Specialist Engineers. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-announces-new-line-of-professional-liability-products-for-specialist-engineers
[4] Mosaic Insurance and Aon Form Exclusive Distribution Agreement for Plug-and-Well Exit Liability Product. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-and-aon-form-exclusive-distribution-agreement-for-plug-and-well-exit-liability-product
[5] Mosaic Insurance Develops Products for Carbon Capture and Sequestration Initiatives. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-develops-products-for-carbon-capture-and-sequestration-initiatives
[6] Mosaic Insurance Launches New SGL Form. (2022). Retrieved from https://www.mosaicinsurance.com/news/mosaic-insurance-launches-new-sgl-form
[7] Mosaic Insurance's Lines of Specialty Business. (2022). Retrieved from https://www.mosaicinsurance.com/about/lines-of-business
[8] US EPA. (n.d.). Orphaned and Abandoned Wells. Retrieved from https://www.epa.gov/superfund/orphaned-and-abandoned-wells
- The hybrid pollution policy, introduced by Mosaic Insurance, is designed to support the remediation of abandoned oil and gas wells, contributing to climate change mitigation efforts and reducing greenhouse gas emissions.
- By filling a critical insurance gap, this product offers coverage certainty for companies involved in plugging, capping, and reclaiming disused wells, making it a crucial step in curbing methane emissions and advancing net-zero climate targets.
- Mosaic's hybrid pollution product uniquely bridges the gap between traditional Contractors Pollution Liability (CPL) and Control of Well (COW) policies, providing tailored protection to well-plugging contractors and stakeholders.
- The strategic partnership between Mosaic Insurance and global broker Aon aims to accelerate the industry's move towards a more sustainable future, offering the hybrid pollution product to project owners, well-plugging contractors, and buyers of carbon credits generated from well-plugging operations.
- Recognizing the growing importance of renewable energy and environmental science, Mosaic Insurance has expanded its team of environmental risk specialists and developed products for emerging energy-transition initiatives, including carbon capture and sequestration (CCS).
- With an estimated two-million inactive, unplugged oil and gas wells scattered across US states, the launch of Mosaic's hybrid pollution product comes at a critical time, as the industry and environmental science work together to address these environmental and health threats and advance the cleanup of environmentally harmful wells.
