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environmental Strategist, between the lines:  The links below highlight the vast array of environmental exposures impacting fire fighters.  Since 2002, almost two out of every three firefighters who died in the line of duty died of cancer.

What’s causing this tragedy for fire fighters?  In basic terms, when buildings and contents burn, they give off hazardous fumes along with contaminate the ground, ground water, neighboring property’s, waterways, natural resources and more.

Besides the obvious pollution cleanup after a fire, affected property owners can also be impacted by third party pollution liabilities from neighboring properties for bodily injury, property damage, business income and more.

We have strategized in the past, how pollution policies, are designed to fill in coverage gaps created by standard property & casualty policies.

As the old saying goes, there are two reasons a risk is not covered under an insurance policy:

1. Risks carriers can’t insure because the claims / losses can’t be calculated.
2. The risk is better covered under another type of insurance policy.

A great example of #2 are fire policies which generally offer $10,000 for Pollutant Clean-Up and Removal after a fire.  The inadequate limit of $10,000 is designed more to protect the insurance carriers from paying for the true costs of pollution cleanup after a fire.  This leaves property owners unknowingly self-insuring this exposure, which creates an increased E&O exposure for insurance agents.

Note:  Fire departments are immune from pollution liabilities while putting out a fire.

The solution, back stop a fire policy with an environmental site pollution policy to fill in the pollution liabilities coverage gap.

I have been asked about pollution coverage under “Debris Removal”.  Generally, policies contain language that debris removal does not apply to costs to extract pollutants from land or water or remove, restore, or replace polluted land or water.

https://www.fireandemsfund.com/cancer-in-the-fire-industry-and-a-lack-of-public-policy/:  As this link points out, “since 2002, almost two out of every three firefighters who dies in the line of duty died of cancer.”  “It’s not the fire itself, but the fumes that come off burning buildings.”

https://apnews.com/article/582a301c3a064a4f96c4c53b5e5d38a8:  This link discusses how cancer is the No. 1 line-of-duty cause of death for men and women who fight fire structures.  Much of the risk comes from burning plastics, chemicals and toxic materials that fire fighters are exposed to when they respond to a burning structure, car, or dumpster.

https://www.dir.ca.gov/dosh/wildfire/worker-health-and-safety-during-fire-cleanup.html:  Commercial and residential structures are built of materials that may release or break down into hazardous substances when burned.  The article (under Other Hazardous Substances) list some of the potential hazardous substances that may be released during a fire as: Arsenic, Cadmium, lead, manganese, nickel, Zinc, PAHs, PCBs, PBBs, PFAS, PFOAs, Dioxins and Furans.

If you breath air, drink water, consume food, you are impacted by and contribute to our PFAS / PFOA… contamination.  As I have said in the past, PFAS liabilities are going to make asbestos and lead look like elementary environmental issues.

PFAS contamination is not an IF situation.  It’s emerging and ongoing (Forever Chemicals) and impacting each one of us daily.  In Michigan, where I live, we have roughly 200 identified PFAS contaminated sites and guesstimates are this will grow to roughly 11,000, just in Michigan.  In the Sleeping Bear Dunes National Park, they are detecting PFAS chemicals in the rainwater.

Maine To Seek ‘Forever Chemical’ Contamination at Many Sites.  This link talks about PFAS chemicals in sewage sludge and paper mill sludge that has been applied as farm fertilizer.  This agricultural practice takes place around the country.

https://www.insurancejournal.com/news/east/2021/10/15/637444.htm

As environmental Strategist, our job is to assist businesses to manage and transfer their environmental exposures and PFAS is one you need to be prepared to coach client’s and prospects.

As the link below points out the Federal government is going to establish PFAS standards.  You want to make sure you are on the front side of this by getting your insureds to inventory what they use that contain PFAS chemicals and find out what alternatives are available for replacement.

https://www.insurancejournal.com/news/national/2021/10/20/638154.htm

As an example of how real PFAS liabilities are just click on the link below.  You can also go to Google and type “PFAS Liability Payments” and read for yourself all the businesses that are dealing with PFAS liabilities.  PFAS liabilities are going to impact businesses that manufacture, distribute, use, or sell PFAS chemicals or products that contain PFAS chemicals.

https://www.insurancejournal.com/news/southeast/2021/10/20/638080.htm

PFAS Chemicals in Breast Milk

https://www.seattletimes.com/seattle-news/environment/seattle-study-of-breast-milk-from-50-women-finds-chemical-used-in-food-wrappers-firefighting-foam/

environmental Strategist, between the lines:  As the links below point out a chemical leak at a Houston water park left dozens suffering.  “The chemicals involved included hypochlorite solution and 35% sulfuric acid”.  These are very common chemicals used in swimming pools, whirlpool spas, laps pools and of course water parks.

Who are your client’s that can experience the same pollution liability as Six Flags?  High Net Worth Insureds, hotels / resorts, country clubs, municipalities, public schools / colleges, homeowner associations, apartments, condominium associations and much more.  Site pollution liability insurance can protect your insureds for this type of pollution liability.  It also very common to store extra pool chemicals onsite and site pollution coverage addresses that environmental exposure as well.

The second link is a follow up to the first article which identifies the cause of the chemical leak as an improperly installed water filtration system by a contractor they hired.  Besides the bodily injury claims you must think about Six Flags Reputational Risk as well as loss of revenue at its 27 parks due to bad publicity.  Pollution policies offer Image restoration coverage.

Your insured’s that hire third party vendors to maintain and take care of pools / spas…, you want to make sure the vendor has an environmental financial assurance plan in place and Contractors Pollution Liability (CPL) insurance will meet that need.  You want to make sure your insured is listed as an additional insured, and the CPL coverage is primary with a waiver of subrogation.  The CPL can also cover the third-party business interruption experienced by Six Flags.

Do you think a $1,000,000 CPL policy will cover this?  What about the 29 people taken to hospitals or the 200 that have joined in a lawsuit?  Make sure to discuss with your insured’s pollution limits and who they do work for.

Dozens treated after chemical leak at Texas water Park:  Associated Press

Posted: JUL 18, 2021

A chemical leak at a Houston-area water park left dozens suffering from minor skin irritation and respiratory issues Saturday, authorities said.

Twenty-nine people were taken to local hospitals following the incident at Six Flags Hurricane Harbor Splashtown in Spring, the Harris County Fire Marshal’s Office tweeted. Thirty-nine others declined to be taken to a hospital after undergoing decontamination procedures.

A local outlet reports that some of those who became sick were children, including a 3-year-old who was hospitalized in stable condition.

The chemicals involved included hypochlorite solution and 35% sulfuric acid, officials said.

“The safety of our guests and team member is always our highest priority and the park was immediately cleared as we try to determine a cause,” Hurricane Harbor Splashtown spokesperson Rosie Shepard said in a statement, according to news outlets. “Out of an abundance of caution, the park has been closed for the day.”

Authorities are investigating the cause of the incident, which they said was contained to one attraction at the park.

“Grateful for the swift action from first responders today at Splashtown,” Houston’s chief elected official, Lina Hidalgo, tweeted. “We’ve issued a closure order to investigate and ensure the park meets all requirements before reopening again.”

https://www.newsnationnow.com/us-news/southwest/dozens-treated-after-chemical-leak-at-texas-water-park/

Texas water park chemical leak blamed on filtration system:  The Associated Press August 5^th 2021

Six Flags water park says a chemical exposure that send dozens of people to hospitals was caused by “Improper installation” of a water filtration system

Six Flags officials said Wednesday that a third-party service company improperly installed the system at Hurricane Harbor Splashtown, causing pool-sanitizing chemicals to be released in an outdoor kiddie pool area on July 17.

“We have determined that the vapor release involved a low-level mixture of the pool-sanitizing chemicals which was discharged from the bottom of the pool through the water filtration system,” said Jason Freeman, Six Flags Vice President of Safety. “The vapor was well below any reportable quantity.”

About 30 people were hospitalized as a result, and 200 people have joined a lawsuit against Six Flags, which owns the water park, the Houston Chronicle reported. Those who fell ill complained of headaches, vision problems, nausea, vomiting, dizziness and sore throats.

Six Flags did not identify the company that installed the system. The park was reopening to the public Thursday.

https://abcnews.go.com/Entertainment/wireStory/texas-water-park-chemical-leak-blamed-filtration-system-79288878

 

environmental Strategist, between the lines:  In the past eS has sent out Competitive environmental Intelligence (CeI) on PFAS / PFOA… chemicals and how they are so ingrained in the fabric of our society.  PFAS / PFOA… are going to make asbestos and lead look like elementary environmental issues.  Their negative impact on our environment and human health cannot be understated.  No matter where you live, you and your family are exposed to PFAS chemicals daily.

As a refresher, PFAS chemicals are used for their resistance to heat, water, oil and grease.  PFAS are a group of human-made chemicals (more than 4,000) that includes PFOA, PFOS, GenX, and many other chemicals. PFAS have been manufactured and used in a variety of industries around the globe, including in the United States since the 1940s and contaminate soil, ground water, surface water and the air.  PFAS can resist degradation in the environment and bio-accumulate; meaning that they are persistent in the environment and tend to concentrate in blood and organs over time in biological species.  People can be exposed to these chemicals in house dust, indoor and outdoor air, food, and drinking water. Exposure to certain PFAS chemicals has ties to cancer, ulcerative colitis in adults and thyroid disease in children, among other health problems.

PFAS chemicals can be found in:

• Food, packaged in PFAS-containing materials, processed with equipment that used PFAS, or grown in PFAS-contaminated soil or water.
• Commercial / household products, including stain- and water-repellent fabrics, carpets, upholstery, soap, shampoo, clothing, leather, nonstick products (e.g., Teflon), pizza boxes, fast food wrappers, microwave popcorn bags, polishes, waxes, cleaning supplies, paints, textiles, paper & packaging materials, cleaning products, and fire-fighting foams (a major source of groundwater contamination at airports and military bases where firefighting training occurs).
• Workplace, including production facilities or industries (e.g., chrome plating, electronics manufacturing or oil recovery) that use PFAS.
• Drinking water, typically localized and associated with a specific facility (e.g., manufacturer, landfill, wastewater treatment plant, firefighter training facility).
• Living organisms, including fish, animals and humans, where PFAS can build up and persist over time.

In this CeI I am highlighting a few articles that show some of the negative impacts we are beginning to learn about the PFAS family of chemicals.

MDHHS recommends Michiganders avoid foam on lakes and rivers:  This warning was issued by the Michigan Department of Health & Human Services warning people to avoid white foam on lakes and rivers because it’s a sign of PFAS contamination.

Michiganders Avoid foam on lakes and rivers:  https://www.michigan.gov/mdhhs/0,5885,7-339–560802–,00.html?utm_campaign=dhhs+pfas+foam+lakes+rivers+pr&utm_medium=mkt+email&utm_source=govdelivery

It’s Literally raining PFAS around the Great Lakes:  You may not be old enough to remember when the world was combating the effects of Acid Rain, this article points out we now have PFAS rain.

It’s Literally raining PFAS around the Great Lakes:  https://www.mlive.com/public-interest/2021/06/its-literally-raining-pfas-around-the-great-lakes-say-researchers.html

Half of Cosmetics contain PFAS Chemicals:  A major percentage of cosmetics contain PFAS chemicals and people are applying them to their body.  California and Maryland to just name a few States have passed laws to ban certain chemicals in cosmetics.  The bans will not go into effect for a couple of years but obviously they are reacting to a problem they have identified with PFAS.

Half of Cosmetics contain PFAS Chemicals:  https://www.insurancejournal.com/news/national/2021/06/17/618956.htm

Vermont Law restricts sales of products containing PFAS:  Vermont has passed a law to phase out PFAS chemicals in products to better protect Vermonters health and their environment.

Vermont Law restricts sales of products containing PFAS:  https://www.insurancejournal.com/news/east/2021/05/24/615503.htm

When discussing pollution insurance to business owners, most often, the first thing that comes to their mind is first party clean up coverage for a spill.  While that is a coverage benefit, there are many benefits offered in a pollution policy besides just clean up.

As you read, keep in mind, environmental liabilities tend to be a severity versus frequency issue.

For decades, ERMI has pointed out three benefits often overlooked in pollution policies:

1. Defense Costs
2. Environmental claims specialists to assist in handling a claim
3. Third Party Liabilities, i.e., Bodily Injury, Property Damage, Business income…

As the environmental insurance industry continues to mature, it has been able to broaden coverage offerings in their base policy forms that were once induvial endorsements, i.e., Non-Owned Disposal Sites, Mold, Transportation Pollution Liability….

A couple of additional benefits that carriers have been adding to their base policy forms are Reputational Risk Coverage & Emergency Response Costs.  Generally, each coverage will have their own set of limits.  Once Reputational Risk Coverage & Emergency Response Costs limits are exhausted, the primary policy limits step up.

Reputational Risk (Image Restoration) Coverage:  Environmental Insurance carriers have seen firsthand the damage to businesses that did not have an environmental financial assurance plan to proactively address their Reputational Risk after an environmental loss.  Reputational Risk Coverage assists an insured to proactively protect their reputation, prevent adverse events, limit damage, while rebuilding their reputation / brand and consumer confidence after a covered cause of loss.  Insurance carriers become an insureds reputational risk partner in mitigating the profitability risk associated with an environmental reputational crisis.

The strategy here is like Coverage C:  Medical Payments on a Commercial General Liability policy which basically is designed to cover third party BI as a goodwill coverage providing a level of reputational protection to the insured.

Environmental Emergency Response Costs:  Cover expenses incurred with remediation because of pollution conditions that require immediate action.  The intent of the coverage is to minimize the insureds liability and / or impact on the environment.

The Emergency Response Costs strategy is to get remediation professionals responding to an environmental liability when it occurs, instead of having to go through the normal insurance claim reporting process to qualify for coverage.  Insurance carriers understand the faster remediation professionals respond, the better chance there is to reduce the size and amount of environmental liabilities.

When an insured is questioning investing in pollution insurance, make sure they understand the importance these coverage benefits offer as part of the premium and their environmental risk transfer strategy.

In today’s business environment, insureds need to understand why insurance carriers are offering these coverage benefits.  For insured’s that elect to self-insure their environmental liabilities, they still need to have an environmental financial assurance plan in place or risk going out of business when they experience an environmental liability.

Attached is an article I did in 2008 for The National Alliance, it points out how to assist your insureds in identifying and reducing their exposure to environmental liabilities by developing an Environmental Management Strategy (EMS).  It is still very relevant today.