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Industry risk report: waste management
Risk & Insurance, Oct 1, 2005
INDUSTRY RISK REPORT WASTE MANAGEMENT
While environmental insurance policies are a requirement in the
insurance portfolios of just about every waste management company,
these companies also take out general liability and directors' and
officers' liability policies. When it comes to workers' compensation,
many companies in the waste management sector, however, opt for
self-insurance.
Company Name Location CRO
Allied Waste Industries Scottsdale, Ariz. Lara Baugh, Director,
Risk Management
Casella Waste Systems Rutland, Vt. Richard A. Norris, CFO
CH2M Hill Companies Englewood, Colo. John Rosenquist
Director, Risk
Management
Clean Harbors Inc. Braintree, Mass. William O'Connor, SVP,
Risk Management
Harsco Corporation Camp Hill, Pa. Stephen Baney,
Director, Risk
Management
Republic Service Fort Lauderdale, Fla. David Spruance, Risk
Management Director
TETRA Tech Pasadena, Calif. Richard A. Lemmon, EVP
Administration and Risk
Manager
Waste Connections Inc. Folsom, Calif. Jerri L. Hunt, Human
Resources and Risk
Management
Waste Industries USA Raleigh, N.C. Stephen Grissom, CFO
Waste Management Inc. Houston, Texas Bob Drew, Director,
Safety and Workers'
Comp Administration
2004 Total
Company Name CFO Revenue
Allied Waste Industries Peter S. Hathaway $5,362 million
Casella Waste Systems Richard A. Norris $439 million
CH2M Hill Companies Samuel H. Iappalucci $2,154 million
Clean Harbors Inc. James Rutledge, CFO $643 million
Harsco Corporation Salvatore Fazzolari $2,502 million
Republic Service Tod C. Holmes $2,708 million
TETRA Tech David W. King $1,437 million
Waste Connections Inc. Worthing F. Jackman $629 million
Waste Industries USA Stephen Grissom $291 million
Waste Management Inc. Robert G. Simpson $12,516 million
No. of Primary
Company Name Employees Broker Captives
Allied Waste Industries 26,000 Aon Haul Insurance Ltd.
(Cayman Islands)
Casella Waste Systems 2,600 Champlain Casella Insurance Co.
Captive (Vermont)
Management
CH2M Hill Companies 14,000 Withheld No
Clean Harbors Inc. 3,792 Withheld No
Harsco Corporation 18,500 Marsh Fortunau Insurance Ltd.
(Bermuda)
Republic Service 13,400 Withheld No
TETRA Tech 8,600 Withheld No
Waste Connections Inc. 3,768 Withheld No
Waste Industries USA 1,600 Withheld No
Waste Management Inc. 51,000 Marsh Mountain Indemnity
Insurance Co. (Vermont)
Company Name Risk Exposure:
Allied Waste Industries The company's inability to refinance its
indebtedness; its inability to obtain
required permits or expand existing permitted
capacity; adverse weather conditions and
costly environmental regulations or
environmental liability; work stoppages, which
could disrupt operations and increase
operational costs.
Casella Waste Systems The possibility that the company will not be
successful in making acquisitions of solid
waste assets; environmental regulations and
litigation; fluctuations in fuel costs that
might negatively affect the company's
operating expenses.
CH2M Hill Companies Uncertain demand for the company's services;
difficulties in integrating new acquisitions
into existing company operations; changes and
fluctuations in government spending policies;
changes in government environmental policies
that could have negative effects on the
company's revenue.
Clean Harbors Inc. The company's ability to generate incremental
volumes of waste to be handled through its
facilities from existing and acquired sales
officers and service centers; the company's
ability to minimize disruptions of operations
and downtime and develop the site services
business.
Harsco Corporation The risk of political economic, and social
instability, civil unrest or armed hostilities
in the countries in which the company does
business; the possibility of negative outcomes
in personal injury claims against the company
that could adversely affect its financial
condition; increases in energy prices that
could increase the company's operating costs.
Republic Service Economic conditions that could adversely
affect business, operations and internal
growth; increases in the price of fuel that
would negatively affect the company's
financial results; delays or denials of
regulatory approval to develop or expand
landfills and transfer stations.
TETRA Tech The seasonality of spending cycles of the
company's public sector clients; delays
incurred in connection with the company's
contracts; changes in investors' or analysts'
perspectives of the company; a negative
resolution of an Internal Revenue Service
examination that could harm operating results
of the company's financial position.
Waste Connections Inc. Increases in insurance costs and the amount
that the company self-insures for various
risks could reduce its operating margins and
reported earnings; further increases in the
price of fuel could negatively affect the
business; the company depends on railraods
for its intermodal operations and any
reduction or deterioration in rail service
could negatively impact business.
Waste Industries USA Intense competition from governmental,
quasi-governmental and private sources in
all aspects of its operations; U.S. economic
conditions that may have an adverse effect
on the company's operations; fluctuations in
the price and supply of fuel; the seasonality
of the company's operations, business, and
revenues.
Waste Management Inc. The seasonal nature of the company's business,
as well as changes in general and local
economic conditions; significant increases in
fuel prices; higher costs of obtaining
adequate financial assurance; the inadequacy
of the company's insurance coverage; the
possibility that disposal site developments or
expansion projects will not be completed on
time.
Company Name Risk Strategies:
Allied Waste Industries Allied carries commecial general liability,
automobile liability, workers' compensation,
employers' liability, directors' and
officers' liability, and pollution legal
liability. The company Is fully self-insured
for employee group health claims.
Casella Waste Systems Casella is self-insured for workers'
compensation coverage through its captive
insurance company, Casella Insurance Co. The
company also maintains various insurance
coverages, including a commercial general
liability policy and a property damage
policy. The company also established and
maintains internal risk management programs.
CH2M Hill Companies The company carries professional liability and
general casualty Insurance, which includes
general liability, property, automotive,
fiduciary, workers' compensation, directors'
and officers', contractor's pollution
liability and coverage for terrorist attacks
(but not acts of war).
Clean Harbors Inc. Clean Harbors has a risk management program
in place, which includes the installation of
risk management systems at its facilities
(fire suppression, employee training,
environmental auditing and policy decisions)
restricting the types of wastes handled. The
company also maintains a casualty insurance
program and a workers' compensation program,
as well.
Harsco Corporation The company maintains liability insurance
coverage under various primary and excess
policies. Harsco also retains a significant
portion of the risk for property, workers'
compensation, automobile, general and product
liability losses.
Republic Service Republic has purchased general liability,
vehicle liability, employment practices
liability, pollution liability, directors'
and officers' liability, workers' compensation
and employers' liability insurance coverage.
The company also has an umbrella liability
policy to provide excess coverage over the
limits contained in these primary policies.
TETRA Tech TETRA maintains a comprehensive general
liability policy, with an umbrella policy
that covers losses beyond general liability
limits. The company also has professional
errors and emissions liability and
contractor's pollution liability insurance
policies.
Waste Connections Inc. The company maintains environmental and other
risk management programs, including a worker
safety program that actively encourages safe
practices in the workplace. The company
maintains automobile liability, property,
general liability, workers' compensation and
employer's liability insurance policies.
Waste Industries USA The company is self-insured for medical and
dental exposures up to certain loss
thresholds. The company also maintains risk
management programs, including an
environmental risk management program and a
worker safety program. Waste Industries also
purchases commercial general liability and
property damage Insurance policies.
Waste Management Inc. The company carries a broad range of insurance
coverages, including general liability,
automobile liability, real and personal
property, workers' compensation, directors'
and officers' liability, and pollution legal
liability insurance.
SOURCE: HOOVER'S, RISK AND INSURANCE MANAGEMENT SOCIETY INC
DATABASES; COMPANY FILINGS.
COPYRIGHT 2005 Axon Group
COPYRIGHT 2008 Gale, Cengage Learning
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