MANAGING LIABILITY AND PROTECTING YOUR ASSETS Presenters: Barry Steinberg / Kutak Rock Bob Hallenbeck / XL Group – Environmental SEPTEMBER 27,2013 8:30 – 10:00AM

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 3 3 I. What should insurance do for your organization?  Control liability  Limit exposures  Protect financial stability  Provide risk management tools  Help you avoid catastrophic losses  Protect Directors and Officers

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 4 4 II. Who can you protect?  The LRA itself  The LRA Board  LRA employees  Tenants  Vendors  Contractors  Passers-by  Adjacent property owners

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 5 5 III. Which insurance policies should be considered, and what do they cover?  Property – your site and what’s on it that you own or lease  General Liability – what happens on your site  Workers Comp – what happens to workers on the site  Auto – vehicles you own and their drivers  Directors & Officers – actions taken by your Board of Directors  Errors and Omissions – actions taken by professional staff and outside consultants

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 6 6 IV. Are there any other insurance policies you should know about and do you acquire or require them to be obtained?  Tenants  Contractors  Subcontractors  Vendors  Architects  Engineers  Consultants  Environmental Risk – CGL Exclusion

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 7 7 V. What kind of environmental risk will I encounter?  Known conditions  Unknown conditions  Breach of Land use restrictions  Level of cleanup needed  Government continuing obligations  Government right of access  Adjacent property migration – to and from

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 8 8 VII. How can I mitigate environmental risk?  Review of government documents  ECP  Regulator concerns  Due diligence  Inadequacy of the CERCLA requirement  No intrusive testing  Petroleum is not a CERCLA hazardous substance  Obtain your own database  Insurance

2013 ADC BASE REDEVELOPMENT FORUM | PAGE 9 9 VII. Government Continuing Obligations  CERCLA warranty – when does the government respond?  330 – the OSD effort to limit it