Firefighters work to extinguish a fire at Gene’s Auto Parts in Traverse City, MI ~ Record Eagle/Tessa Lighlty
What You Need To Be Discussing With Your Clients About The Aftermath Of A Fire and How Pollution Insurance Can Play A Role
The Article and related links below highlight a simple fire that took place at Gene’s Auto Parts near Traverse City Michigan. Gene’s does auto salvage and parts sales. Some of the contaminants that were probably released during the fire would be air emissions from burning tires, plastic, inventory…, cadmium, lead, asbestos, petroleum products, anti-freeze, mercury…. Are these contaminants covered under the fire policies you sell? What is your strategy to fill in this gap?
Businesses that can have similar environmental exposures as Gene’s Auto Parts due to a fire would be auto manufacturers & dealers, commercial truck manufacturers & dealers, agricultural equipment manufacturers & dealers, trucking companies, marina’s & ports….etc
If your client purchases fire insurance and experiences as loss, what happens after the fire department puts out the fire? The water and chemicals used to put out the fire mix with anything which melted or was released during the fire including the charred remains. Often times this leaves behind a toxic goo creating a pollution liability for the property owner. The fire department is immune.
If the property owner does not have a pollution policy and they experience a fire, there are a lot of costs the insured is self-insuring. As your client’s professional risk manager have you informed them of the potential pollution exposures they are self-insuring? What about third party bodily injury from neighbors inhaling fumes? What about third part property damage to neighbors when the goo migrates on to their property, cost for emergency response crews, defense costs, investigation costs, business interruption…?
Insurance professionals that sell fire insurance and do not educate their insureds on the value pollution insurance offers, are opening themselves up to an E&O suit. Not to mention this creates a professional reputational risk exposure as well.
Environmental Risk Managers is here to assist you with all things environmental! Including the aftermath of a fire like this.
Megan Woods, Reporter – 9&10 News
Blair Township fire destroys business, closes busy road
By ERIN SLOAN esloan@record-eagle.com and TESSA LIGHTY tlighty@record-eagle.com
TRAVERSE CITY — Clouds of heavy smoke billowed into the sky over Blair Township when an auto parts shop caught fire, triggering the closure of a major roadway. Fire crews on Friday responded to Gene’s Auto Parts on M-37 shortly before noon, said Blair Township Fire Chief Jim Carroll.
The blaze started in a back building where cars are deconstructed and salvaged, he said.”The building is really hard to get around in inside and we tried to hold it to the back building as long as we could and then it went over our heads into the next building forward,” Carroll said. “We’ve gotten it away from the office.” Chris White, an office employee at the shop, was working in the front office when flames erupted.”We didn’t think that it was going to affect us, but it started spreading so they said ‘get out,’” she said. “Very sad. Very sad how people are going to be out of a job. It’s just scary.” White said she was able to save some files from the office before being evacuated. “We couldn’t get the water into the back part but then things started to get really heavy — smoke and heat so we decided we had to come out,” Carroll said.
The building, which is most likely a total loss, was difficult to maneuver around, especially with the heavy, black smoke that enveloped the property, Carroll said. “It’s one of the biggest I’ve seen,” Carroll said. Crews battled the flames from ladder trucks and the ground outside of the building, but the thick smoke became a concern after one firefighter was sent to a local hospital for observation, he said.No one else was injured before or during the blaze. Carroll was unsure what caused the fire as of Friday afternoon.”It’s all car parts. All the little bangs and beeps and explosions you hear are actually mostly airbags,” he said. “Everything else in there is OK, but there is metal.”
Jack Akers, a resident who lives across the street from the shop, and was a longtime friend to the company’s founder, the late Gene Denman.”It almost makes me cry because I’ve seen (Gene) start it,” Akers said. “I thought they had it under control and it’s just gone, it’s gone. I’m just wondering what in the world the dollar amount is going to come out to.”Akers has watched his friend’s business grow for years from its Acme location to the one between Nimrod and Blair Town Hall roads. The business celebrated 50 years in 2014.”I feel closer to it than anyone else because of the friendship, and we were friends. I’ve seen him grow this business from Acme to here and then see it grown into a million-dollar business. That’s the part that really hurts,” Akers said.American Red Cross Disaster Services arrived on scene as soon as they could to help keep emergency crews fed and hydrated, said Bud Ingram who serves on the organization’s action team.
“We were paged by dispatch to offer assistance,” Ingram said. “We scrambled out to get coffee and pizza for everyone.”Ingram made a stop at a Holiday gas station for donated coffee, and picked up pizza, crackers, sports drinks and bottled water for the crews. M-37 was closed for at least five hours Friday as Blair Township Fire, Grand Traverse Metro Emergency Services and Grand Traverse Rural Fire battled the flames and Grand Traverse County sheriff’s deputies diverted traffic.
