SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo Insurance, part of Wells Fargo & Company (NYSE: WFC), today announced the launch of its Prop 65 insurance program1, the first liability insurance program tailored to provide financial protection for product manufacturers, distributors, and formulators of products that contain any of six plasticizers covered under California Proposition (Prop) 65.
The average settlement cost for these claims exceeds $80,0002 with fines costing as much as $2,500 per exposure per day, according to Wells Fargo Insurance. Existing general liability, product, and pollution policies currently do not provide coverage, which puts companies at financial risk if faced with a Prop 65 civil lawsuit. Under Wells Fargo Insurance’s program, companies can now mitigate risk by securing coverage to provide protection from the costs associated with defending a Prop 65 lawsuit specific to plasticizers, including fines, penalties, legal costs, and expenses. The coverage is serviced by Safehold Special Risk, Inc., a division of Wells Fargo Insurance, and underwritten by Hiscox, a leading specialist insurer.
“At Wells Fargo Insurance, we continually look for ways to innovate and provide our customers with the right services and resources,” said Glynis Priester, Wells Fargo Insurance Environmental National practice leader. “We recognized a need existed with our customers and in the marketplace and we worked closely with SPI, The Trade Association of the Plastics Industry to craft the program.”
California Proposition (Prop) 65 was passed into law in 1986 and requires product manufacturers, distributors, and formulators to provide “clear and reasonable” warnings on products sold in California that contain chemicals known to be carcinogenic, or cause birth defects, if exposure to those chemicals from the product exceeds the safe harbor level. Currently, California Prop 65 covers more than 800 chemicals. Wells Fargo’s Prop 65 insurance program provides coverage related to the following plasticizers:
“This was a true team effort across Wells Fargo Insurance and is a testament to the breadth of our resources and expertise,” John Paulk, Jr., vice president and programs leader of Safehold Special Risk added. “We’re excited to offer the industry’s first Prop 65 insurance program as we continue to help our customers protect what they value most.”
The Wells Fargo program is endorsed by SPI and offered as a business benefit by SPI to its members.
Wells Fargo’s Environmental National Practice helps customers with financial underwriting and insurance, including pollution legal liability, guaranteed fixed price cleanup, environmental surety, and lender liability.
About Wells Fargo Insurance4
Recently named Best Insurance Broker in the U.S. by Global Finance Magazine5, Wells Fargo Insurance provides solutions for a wide range of customers, including retail consumers, high net worth individuals, small businesses, as well as middle market and large corporate customers. Wells Fargo Insurance writes or places approximately $11 billion of risk premiums annually in property, casualty, benefits, international, personal lines, and life products and also includes one of the nation’s leading crop insurance providers, Rural Community Insurance Services (RCIS).
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE: HSX). There are three main underwriting divisions in the Group - Hiscox London Market, Hiscox Re and Hiscox Retail (which includes Hiscox UK and Europe, Hiscox Guernsey, Hiscox USA and subsidiary brand, DirectAsia). Hiscox underwrites internationally traded, bigger ticket business and reinsurance through Hiscox Re and Hiscox London Market. Through its retail businesses in the UK, Europe and the US Hiscox offers a range of specialist insurance for professionals and business customers, as well as homeowners.
For further information, visit www.hiscoxgroup.com.
1 This broker communication is for informational purposes only. The coverage afforded by the products described herein is subject to and governed by the terms and conditions of each policy issued. This information may not be used to modify any policy that might be issued. The products described are underwritten by a Hiscox syndicate at Lloyd’s, London, and is available in the US on a surplus lines basis. The publication and delivery of this information is not intended to be a solicitation by Lloyd’s for the purchase of insurance on any US risk.
2 This figure was calculated by Wells Fargo Insurance using data provided on the California Attorney General’s website.
3 recently added to Prop 65 list in December 2014
4 Products and services are offered through Wells Fargo Insurance Services USA, Inc., and through Safehold Special Risk, Inc., dba Safehold Special Risk & Insurance Services, Inc. in California, a non-bank insurance agency affiliate of Wells Fargo & Company, non-bank affiliates of Wells Fargo & Company. Products and services are underwritten by unaffiliated insurance companies except crop and flood insurance, which may be underwritten by an affiliate, Rural Community Insurance Company. Some services require additional fees and may be offered directly through third-party providers. Banking and insurance decisions are made independently and do not influence each other.
5 Ranking includes Wells Fargo Insurance Services USA, Inc., Wells Fargo Insurance Services of West Virginia, Inc., Wells Fargo Insurance, Inc., and Rural Community Insurance Company