Section 287.372. Conditions of insurance

(a) Except for operators of residual waste land application sites under Chapter 291 (relating to land application of residual waste), the operator shall maintain a comprehensive general liability insurance policy during operation of the facility and until the Department issues a final closure certification under this chapter which satisfies the following conditions:

(1) The commercial insurance provided to satisfy the public liability insurance requirement of this section shall follow the standard commercial or comprehensive general liability policy forms approved by the Insurance Department, and shall include coverage for property damage and bodily injury to third persons.

(2) The insurance policy shall specify that per occurrence and aggregate limits apply to property damage and bodily injury combined.

(i) For coverage which is exclusive of legal defense costs, the minimum amount of coverage for property damage and bodily injury combined shall be $500,000 per occurrence, with an annual aggregate of $1,000,000.

(ii) For coverage which is inclusive of legal defense costs, the minimum amount of coverage for property damage and bodily injury combined shall be $500,000 per occurrence, with an annual aggregate of $1,000,000 which shall be reserved for the payment of claims. The minimum amounts of coverage reserved for the payment of claims may not be reduced for legal defense or claims administration costs.

(3) Each insurance policy shall be issued by an insurer having a Certificate of Authority and a licensed agent authorized to transact the business of insurance in this Commonwealth by the Insurance Department. Insurance may be provided by an excess or surplus lines insurer approved by the insurance Department.

(4) The full policy amount shall be applicable to each facility covered and operated by the operator. There may be no proration of the policy amount of coverage among facilities.

(5) The insurance policy shall provide that the insurer shall notify the Department by certified mail whenever a substantive change is made in the policy, including policy amounts, scope of coverage, tail period, claims procedures, definitions of occurrences or claims, or another provision related to this subchapter.

(6) The amount of coverage provided for property damage and bodily injury may be exclusive or inclusive of legal defense costs.

(7) The insurance policy shall provide for the payment of claims up to the full amount of coverage required under this subchapter, regardless of a deductible amount applicable to the policy. If the policy provides the insurer with a right of reimbursement by the insured for payment of a deductible amount, the policy shall provide that the insurer shall be liable for payment of the deductible amounts. If the policy does not provide the insurer with a right of reimbursement or similar method of recoupment, the insured shall provide additional coverage amounts to meet the requirements of this subsection by the purchase of excess coverage for the deductible amounts.

(b) The operator of a residual waste land application facility for agricultural utilization or land reclamation under Chapter 291, shall maintain liability coverage during the operation of the permitted area and until the Department issues a final closure certification under this chapter. The operator shall submit a certificate from an insurance company licensed or authorized to do business in this Commonwealth, certifying that the operator has a comprehensive general liability insurance in force covering the operator’s residual waste land application operations, which include vehicular activities. The certificate shall provide for third-party personal injury and property damage protection. Minimum coverage for combined personal injury and property damage shall be $500,000. Coverage provided under this paragraph shall comply with the following:

(1) The insurance policy shall follow the standard commercial or comprehensive general liability policy forms approved by the Insurance Department and shall include coverage for property damage and bodily injury to third persons.

(2) The insurance policy shall have the property damage and bodily injury combined within the per occurrence and aggregate minimum coverage amounts, and may be either claims made or occurrence type.

(3) Each insurance policy shall be issued by an insurer having a Certificate of Authority and a licensed agent authorized to transact the business of insurance in this Commonwealth by the Insurance Department. Insurance may be provided by an excess or surplus lines insurer approved by the Insurance Department.

(4) The full policy amount shall be applicable to each facility covered and operated by the operator. There may not be proration of the policy amount of coverage among facilities.

(5) The insurance policy shall provide that the insurer shall notify the Department by certified mail whenever a substantive change is made in the policy, including policy amounts, scope of coverage, tail period, claims procedures, definitions of occurrences or claims or another provision related to this subchapter.

(6) The amount of coverage provided for property damage and bodily injury may be exclusive or inclusive of legal defense costs. When the coverage is inclusive of legal defense costs, the policy shall state that the amount reserved for payment of claims, exclusive of legal defense and claims administration expenses, is not less than the minimum coverage amount for property damage and bodily injury combined.