HAZARDS OF HAZARDOUS WASTES.

Several years ago the insurance industry, in an apparent overreaction to the perceived threat of a host of suits against engineers, excluded coverage with respect to most claims concerning discharge of hazardous wastes. Both the professional liability and insurance coverage aspects of hazardous waste claims are considered in the paper. It is shown that the insurance industry has dramatically overreacted to the threat of pollution claims against engineers. There is no actuarial justification for the exclusion, since therehas been virtually no loss suffered by the insurers with respect to such activities. Consulting engineers likewide have overreacted to the insurance companies' position. They perceive themselves as uninsured in a high-risk area. It is demonstrated that they are still substantially insured (if insured by DPIC, CNA or another carrier withnthe liberal exclusion) and that the risk is not nearly as high as perceived.