Prepared for the seller
For Coal Products Limited
CPL is selling Cwm Coke Works but does not, on completion, stop being a potential target for environmental claims relating to the land it once operated. The quotation carries an option to add CPL to the same Mosaic policy as a Named Insured, so that protection sits in CPL's own name alongside Bluefield's rather than resting solely on indemnities in the sale agreement.
What being a Named Insured gives CPL
- Cover in CPL's own name under the same policy wording, limits and deductible as Bluefield — no separate placement, no separate wording to negotiate.
- Direct access to the insurer for pollution legal liability claims from third parties, including legal costs, in place of a contractual claim against the buyer.
- The insurer's balance sheet stands behind the risk for the full policy period: Lloyd's security rated A+ by AM Best and AA− by S&P and Fitch.
- The same long-tail structure applies: no retroactive date on the liability sections, and a split period of 5 years for new pollution and 10 years for pre-existing pollution.
Scope of the option
The option is priced on Insured Site 1 — the former CPL coke works and associated land at Cwm — being the land CPL is selling.
- Named insured option
- Coal Products Limited (CPL) — optional addition as Named Insured
- Basis of pricing
- Additional premium of 25% of the premium for Insured Site 1
- Limits shared
- Same limit of indemnity and aggregate as the option selected by Bluefield
- Deductible
- GBP 100,000 each Pollution Incident
- Territory and law
- United Kingdom · English law, jurisdiction of England
- Aggregate limits
- Apply to the whole policy period and are not reinstated
Additional premium to add CPL
Payable in addition to the premium shown on the Bluefield page, and matched to whichever option is bound.
| Option | Term | Each incident | Aggregate | Deductible | Premium |
|---|---|---|---|---|---|
| 1 | 5 years | £5,000,000 | £5,000,000 | £100,000 | £16,250 |
| 2 | 5 years | £10,000,000 | £10,000,000 | £100,000 | £24,862 |
| 3 | 10 years | £5,000,000 | £5,000,000 | £100,000 | £28,600 |
| 4 | 10 years | £10,000,000 | £10,000,000 | £100,000 | £38,039 |
- Insurance Premium Tax of 12% on the 100% gross premium is payable in addition.
- Premium payment terms: 60 days from inception; LSW3001 Premium Payment Clause.
- Terms valid for 60 days from 26 August 2026.
What CPL should be clear about
The policy is not a clean-up fund for what is already known about the site.
- All known and disclosed on-site soil, surface water and groundwater pollution at Insured Site 1 is excluded from on-site clean-up costs (E-SPL-313).
- Pre-existing pollution incidents are excluded from on-site clean-up costs (E-SPL-311).
- PCBs, methane and carbon dioxide gas are excluded to the extent not adequately addressed to date (E-SPL-296, qualified).
- Voluntary site investigation is excluded on the KJ Price Ltd owned portion of the lands (E-SPL-359, qualified).
- Fly-tipping, and failure of engineering and institutional controls, are excluded.
- The aggregate is shared across the whole policy period and across insureds — it is not a per-party limit.
Next step
If CPL wishes to be named, that election needs to be confirmed before binding so the Named Insured schedule and the additional premium can be included in the final terms. The inception date follows contract exchange.