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  • Environmental Risk Managers “Business Professionals” Series #2, TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • Environmental Risk Managers “Business Professionals” Series #2, TEAMing with Attorney’s To Drive Insurance Sales

    Of all the “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s, environmental engineers) we are highlighting in the ERMI TEAMing with “Business Professionals” series, attorneys represent the lowest hanging fruit for insurance professionals to TEAM with.

    There are several reasons for this which we will cover in this competitive environmental intelligence but mainly, attorneys tend to specialize in specific areas of law, i.e. general business, estate planning, bankruptcy, patent / trademark, environmental, criminal, international, employee, civil…  This means an attorney is well versed in their specific area of law but possess very little knowledge about assisting their clients to manage and transfer their environmental exposures.  Note:  As highlighted in Series #1, TEAMing With “Business Professionals”, every business and individual is impacted by environmental exposures.

    Historically, once an environmentally reactive business / individual calls their attorney to assist them with an environmental liability, the attorney brings in their firm’s environmental specialist to address the issue.  This business model will generally lead to some form of litigation and what attorney’s clients have learned over the years about environmental litigation is its very time consuming, stresses resources and desired results are generally not achieved

    Insurance professionals are not going to fix a broken business model overnight, but you can fill a huge gap in most attorney’s work, lack of financial assurance to backstop their legal documents.  In today’s business environment, the name of the game for attorney’s is avoid litigation to grow their client base and business.  Insurance professionals are armed with an arsenal of products to assist attorneys to grow their business model.

    The bottom line, today’s transparent business environment has changed the way Attorney’s must address environmental exposures impacting their client’s which means opportunity for insurance professionals.

    Note:  Education is a vital component to building a TEAM relationship with “Business Professionals”.  Throughout the ERMI “Business Professionals” series we will offer coaching tips to assist you in building your relationships with “Business Professionals”.

    ERMI TEAM Relationship Coaching Tip:  In some contracts, attorney’s will require financial assurance to backstop indemnifications contained in the contract.  They will generally achieve this utilizing standard property and casualty and environmental insurances with coverage being evidenced by a certificate of insurance.  The problem this strategy presents in relation to environmental insurance is, an environmental insurance policy will not be issued without the insurance carrier first receiving a completed and signed “warranty” insurance application.  In general terms the application will state that the environmental insurance policy is being issued based upon the signed “warranty” application and that the application will become part of the policy.  The application goes on to say at the time of a loss if it’s discovered the application is not accurate, the insurance carrier can deny coverage.  Without first confirming the “warranty” application is accurately filled out the certificate of insurance may not be worth the paper it is written on and the same is true for the attorney’s financial assurances contained in the contract.  Coaching attorneys to understand warranty applications will fill a gap in their financial assurance strategy in contracts and a gigantic hole in their E&O exposure.

    To support the above statements let’s look at another example.  For years, attorneys have utilized environmental indemnifications in real estate Buy / Sell Agreements, mergers and acquisitions and many other legal instruments.  Generally speaking, attorneys feel content with addressing potential environmental exposures by simply utilizing environmental indemnifications in legal instruments and not backing them up with a financial assurance mechanism (i.e. bond, letter of credit, monies on deposit, insurance).

    Today we know the problems created by this mindset and the fact that environmental indemnifications are a very cursory way of addressing environmental exposures in legal transactions.

    ERMI TEAM Relationship Coaching Tip:  Environmental insurance policies pay for defense costs.  Do you think an attorney would rather collect their fees from a financially solvent insurance carrier or a client that just found out they have contaminated half their towns drinking water?

    For decades, our Federal Government has utilized financial assurance requirements for asbestos and lead abatement contractors, regulated underground storage tanks, hazardous & industrial waste haulers, Landfills…, so why not more attorney’s?

    Insurance professionals have a variety of financial assurance products to assist attorneys to reduce their E&O exposure, one of which is pollution liability insurance.  TEAMing with ERMI will allow you access to the full menu of the environmental insurance products offered by the major environmental insurance carriers.

    ERMI TEAM Coaching Tip:  Talking points with attorney’s.

    To understand why “Best Practices” for attorneys means moving beyond their current litigious business model to possessing a working knowledge of managing and transferring environmental exposures, we first must be on the same page about a few environmental facts.

    1. What is a “Pollutant”? If you look at an environmental indemnification in a contract, it generally describes a Pollutant as smoke, vapors, soot, fumes, acids…..  However, due to the way courts and insurance companies have responded to lawsuits and insurance claims, environmental Strategist™ (eS) has developed a definition that is easier to understand.  eS define a “Pollutant” as a material, substance or product that gets introduced to an environment for other than its intended use or purpose.” In other words, something that ends up where it does not belong can be a pollutant.  eS have examples where fresh water, milk, cheese, fruit, beer and more have all been defined as a “Pollutant”.
    2. Law firms generally utilize specially trained environmental attorney’s to address their client’s environmental exposures when in reality their biggest environmental exposures are with their other legal specialist’s i.e. general business, health, international, labor, estate planning, merger & acquisition, real estate…. In short, nearly every attorney must possess a working knowledge of proactively addressing their client’s environmental exposures.  TEAMing with ERMI insurance professionals can do this.  In short, you become the law firms backroom environmental risk manager on managing and transferring their client’s environmental exposures.
    3. Historically, attorneys have made their money by addressing past environmental problems such as asbestos, lead, mold and so much more. This reactive approach has cost attorneys time, resources, client relationships and much more.  TEAMing with ERMI we can coach attorney’s on proactively managing and transferring their client’s environmental exposures to increase productivity and profits while reducing their E&O exposure.
    4. The inability of at fault parties to meet environmental indemnifications in contracts is a reputational and liability risk for attorney’s. Attorneys not practicing environmental “Best Practices” may find their E&O insurance at risk of claims from disgruntled client’s.

    ERMI TEAM Coaching Tip:  You would be amazed how many contracts Environmental Risk Managers (ERMI) reviews that an attorney constructed requiring the wrong pollution insurance.  On almost a weekly basis ERMI will assist an attorney with correcting their contract to make sure the proper pollution insurance is being requested and put into place.  TEAMing with ERMI we can make sure your legal TEAM members are not opening themselves up to an E&O exposure by requesting the improper environmental insurance.

    Today’s business environment is demanding attorneys know if their work is preserving an asset or creating an environmental liability for their client and themselves.  Insurance professionals TEAMing with attorney’s to manage and transfer the attorney’s clients environmental exposures will position themselves as a trusted advisor and strategic partner while driving the sales of their insurance products.

    In Environmental Risk Managers “Business Professionals” Series #3 we will strategize on TEAM building with Bankers / Financial Institutions.

  • TEAMing With “Business Professionals” To Generate Insurance Sales

    To assist you to grow your insurance sales, environmental Strategist® has developed this competitive environmental intelligence series on executing a TEAM SPORT strategy. 

    After more than 25 years of operating a specialty environmental insurance wholesale operation, I have observed one common denominator successful insurance professionals share, they are continually looking for new opportunities.

    Since every business is impacted by environmental exposures and fewer than 15% of licensed insurance professionals are actively selling environmental insurance products there is huge upside for insurance professionals looking for opportunities.

    environmental Strategist® has developed this five-part educational resource specifically for you to coach up “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s) on the value you can add to their business model.   Through this process “business professionals” will bring you insurance sales opportunities to make sure they are better protecting their E&O exposure while executing environmental “Best Practices” with their client’s.

    As a simple example let’s look at attorney’s that draw up contracts for real estate buy / sell agreements.  It’s hard to find a buy sell agreement that does not contain an environmental indemnification.  However, if a financial assurance mechanism (letter of credit, monies in escrow, insurance, bond…) is not put into place to back stop the environmental indemnification and there is a default, the contract may not be worth the paper it is written on.  This can create and E&O exposure for the attorney since the attorney put the environmental indemnification in the contract, billed their client, but did not back stop it by making sure a financial assurance mechanism was in place to support their contract.  Attorney’s clients have been coming back to their attorneys for the financial solution since the indemnifying party defaulted on the “attorney’s” contract.

    In Series One of our five part series, we are going to review why “business professionals” will bring you sales opportunities utilizing a TEAM SPORT strategy.

    eS TEAM SPORT Strategy:

    Every insurance professional knows referral business is an excellent source for new business sales.  An insurance professional can either ask for referral business or they can produce referral business while assisting “business professionals” to leverage their business model.  A Win / Win strategy and much more professional than asking for referrals to generate new business.

    Producing referral business creates a higher success rate than asking, while at the same time positioning the insurance professional as a trusted advisor and strategic partner.

    Let me digress, the only constant we have is change (opportunity).  The environmental industry has created change (opportunity) in the way businesses operate.  This also creates change (opportunity) for the way business professionals leverage their products or services to proactively address environmental exposures impacting their client’s / prospects.  By following the environmental Strategist® (eS) www.estrategist.com holistic TEAM SPORT strategy you move beyond asking for referral business to “business professionals” asking you to assist them in helping their clients.

    Fortunately, the complexities of addressing environmental issues means there is no one stop shop to be able to get all your answers.  Therefore, the success a business professional has in addressing environmental exposures impacting their client’s, depends upon the TEAM that business professional surrounds themselves with.

    environmental Strategist has branded this a TEAM SPORT strategy.  TEAM SPORT stands for Together Everyone Accomplishes More because Strategic Partners Optimize Resources and Time.

    Who are your TEAM members?

    To answer that, let’s look at what a typical environmentally reactive business does when they find out they have an environmental problem.  Keep in mind, since the business is reactive they are managing the environmental problem after it occurs.

    Probably the first business professional an environmentally reactive business will call is their attorney.  After they call their attorney, they will contact their insurance agent to see if they have any environmental insurance coverage.  When their insurance agent informs them, they do not have any coverage, the reactive business generally will call their attorney back to sue the insurance agent’s E&O.

    Since the environmentally reactive business is unknowingly self-insuring their environmental liabilities, they will need financial resources to correct the problem and pay legal fees, cleanup cost, third party bodily injury, third party property damage…, so they need to involve their financial institution.  However, most financial institutions, once they find out they have a client with an environmental problem, their strategy is to call all obligations due and sever the relationship.

    Since the reactive business has an environmental liability, they need to involve their accountant to accurately express their current financial position.

    If the business owns, buys, sells or manages property they will want an environmentally knowledgeable realtor as part of their TEAM.

    You include the businesses environmental services providers  (environmental engineers, remediation contractors, waste haulers, etc.), and some of the businesses employees.  This rounds out your typical eMS TEAM.

    In Series Two we will review TEAM SPORT strategies for working with attorney’s to generate insurance sales.

    environmental Strategist (eS) business leverage strategy:  In achieving your environmental Strategist (eS) certification @ www.estrategist.com you position yourself as the TEAM leader the other TEAM members report to.  The www.estrategist.com Collaboration Portal is designed to position the eS as the TEAM leader.  Each time you develop a TEAM to assist a client to leverage their business model, other TEAM members will ask you for assistance in helping them with some of their client’s.  The eS producing referral business strategy is a win / win/ win / win for your clients, your TEAM members client’s, TEAM members and you. 

    www.estrategist.com educates business professionals how to leverage their business model by moving beyond asking for referral business.

  • TEAMing With “Business Professionals” To Generate Insurance Sales

    To assist you to grow your insurance sales, environmental Strategist® has developed this competitive environmental intelligence series on executing a TEAM SPORT strategy. 

    After more than 25 years of operating a specialty environmental insurance wholesale operation, I have observed one common denominator successful insurance professionals share, they are continually looking for new opportunities.

    Since every business is impacted by environmental exposures and fewer than 15% of licensed insurance professionals are actively selling environmental insurance products there is huge upside for insurance professionals looking for opportunities.

    environmental Strategist® has developed this five-part educational resource specifically for you to coach up “business professionals” (i.e. attorney’s, accountant’s, banker’s, realtor’s) on the value you can add to their business model.   Through this process “business professionals” will bring you insurance sales opportunities to make sure they are better protecting their E&O exposure while executing environmental “Best Practices” with their client’s.

    As a simple example let’s look at attorney’s that draw up contracts for real estate buy / sell agreements.  It’s hard to find a buy sell agreement that does not contain an environmental indemnification.  However, if a financial assurance mechanism (letter of credit, monies in escrow, insurance, bond…) is not put into place to back stop the environmental indemnification and there is a default, the contract may not be worth the paper it is written on.  This can create and E&O exposure for the attorney since the attorney put the environmental indemnification in the contract, billed their client, but did not back stop it by making sure a financial assurance mechanism was in place to support their contract.  Attorney’s clients have been coming back to their attorneys for the financial solution since the indemnifying party defaulted on the “attorney’s” contract.

    In Series One of our five part series, we are going to review why “business professionals” will bring you sales opportunities utilizing a TEAM SPORT strategy.

    eS TEAM SPORT Strategy:

    Every insurance professional knows referral business is an excellent source for new business sales.  An insurance professional can either ask for referral business or they can produce referral business while assisting “business professionals” to leverage their business model.  A Win / Win strategy and much more professional than asking for referrals to generate new business.

    Producing referral business creates a higher success rate than asking, while at the same time positioning the insurance professional as a trusted advisor and strategic partner.

    Let me digress, the only constant we have is change (opportunity).  The environmental industry has created change (opportunity) in the way businesses operate.  This also creates change (opportunity) for the way business professionals leverage their products or services to proactively address environmental exposures impacting their client’s / prospects.  By following the environmental Strategist® (eS) www.estrategist.com holistic TEAM SPORT strategy you move beyond asking for referral business to “business professionals” asking you to assist them in helping their clients.

    Fortunately, the complexities of addressing environmental issues means there is no one stop shop to be able to get all your answers.  Therefore, the success a business professional has in addressing environmental exposures impacting their client’s, depends upon the TEAM that business professional surrounds themselves with.

    environmental Strategist has branded this a TEAM SPORT strategy.  TEAM SPORT stands for Together Everyone Accomplishes More because Strategic Partners Optimize Resources and Time.

    Who are your TEAM members?

    To answer that, let’s look at what a typical environmentally reactive business does when they find out they have an environmental problem.  Keep in mind, since the business is reactive they are managing the environmental problem after it occurs.

    Probably the first business professional an environmentally reactive business will call is their attorney.  After they call their attorney, they will contact their insurance agent to see if they have any environmental insurance coverage.  When their insurance agent informs them, they do not have any coverage, the reactive business generally will call their attorney back to sue the insurance agent’s E&O.

    Since the environmentally reactive business is unknowingly self-insuring their environmental liabilities, they will need financial resources to correct the problem and pay legal fees, cleanup cost, third party bodily injury, third party property damage…, so they need to involve their financial institution.  However, most financial institutions, once they find out they have a client with an environmental problem, their strategy is to call all obligations due and sever the relationship.

    Since the reactive business has an environmental liability, they need to involve their accountant to accurately express their current financial position.

    If the business owns, buys, sells or manages property they will want an environmentally knowledgeable realtor as part of their TEAM.

    You include the businesses environmental services providers  (environmental engineers, remediation contractors, waste haulers, etc.), and some of the businesses employees.  This rounds out your typical eMS TEAM.

    In Series Two we will review TEAM SPORT strategies for working with attorney’s to generate insurance sales.

    environmental Strategist (eS) business leverage strategy:  In achieving your environmental Strategist (eS) certification @ www.estrategist.com you position yourself as the TEAM leader the other TEAM members report to.  The www.estrategist.com Collaboration Portal is designed to position the eS as the TEAM leader.  Each time you develop a TEAM to assist a client to leverage their business model, other TEAM members will ask you for assistance in helping them with some of their client’s.  The eS producing referral business strategy is a win / win/ win / win for your clients, your TEAM members client’s, TEAM members and you.  

    www.estrategist.com educates business professionals how to leverage their business model by moving beyond asking for referral business.

     

  • Miss-Delivery of Product

    environmental Strategist, between the lines:  Miss-delivery of product is a huge environmental exposure most businesses do not consider.  The article below highlights how in one of the most regulated industries, Nuclear, miss-delivery of products takes place.  How easy is it for less regulated raw materials and products?

    How would you like to find out a delivery made to you by Fed Ex had nuclear contamination because it got contaminated on the truck carrying the mislabeled nuclear material?

    A miss-delivery loss that comes to mind is one where the driver delivering fuel to a county garage, delivered it to the wrong county.  Not the wrong gas station across the street but the wrong county.  Roughly 15 years of cleanup and millions of dollars later the county received a no further action letter.  The problem was such because the county had just had their fuel tanks filled a few days prior and when the driver sat back to read the paper thousands of gallons of gas went over the surface, into municipal and storm sewers before the driver noticed and shut off the gas.

    There are several pollution policies that can cover miss-delivery of products.  What is your clients financial assurance strategy to protect themselves from miss delivery of product/s?

    https://www.usatoday.com/story/news/nation/2017/08/01/nuclear-labs-radioactive-mail/104058890/

  • Miss-Delivery of Product

    environmental Strategist, between the lines:  Miss-delivery of product is a huge environmental exposure most businesses do not consider.  The article below highlights how in one of the most regulated industries, Nuclear, miss-delivery of products takes place.  How easy is it for less regulated raw materials and products?

    How would you like to find out a delivery made to you by Fed Ex had nuclear contamination because it got contaminated on the truck carrying the mislabeled nuclear material?

    Photo Credit: thebalance.com

    A miss-delivery loss that comes to mind is one where the driver delivering fuel to a county garage, delivered it to the wrong county.  Not the wrong gas station across the street but the wrong county.  Roughly 15 years of cleanup and millions of dollars later the county received a no further action letter.  The problem was such because the county had just had their fuel tanks filled a few days prior and when the driver sat back to read the paper thousands of gallons of gas went over the surface, into municipal and storm sewers before the driver noticed and shut off the gas.

    There are several pollution policies that can cover miss-delivery of products.  What is your clients financial assurance strategy to protect themselves from miss delivery of product/s?

    https://www.usatoday.com/story/news/nation/2017/08/01/nuclear-labs-radioactive-mail/104058890/

  • Illicit Abandonment

    environmental Strategist®, between the lines:  Illicit Abandonment is an environmental exposure, which most commercial real estate lessors don’t think about.

    Let me digress, back in 2008 when the economy tanked, we received a call from an insurance agent who explained his client had a leased facility and the tenants went out of business.  When the client went to inspect their property, they found raw materials stored in 55 gallon drums, totes and other storage containers, which were left behind by the bankrupt tenant.  None of the containers were leaking or causing an environmental liability, but to rent the building out the owner had to get rid of the raw materials and it cost more than $80,000.  That is a simple example of illicit abandonment and this exposure can be covered with pollution liability insurance.

    The article below talks about refurbishing of containers, such as 55 gallon drums, and the environmental exposures it creates for workers and neighbors to business those refurbish containers.  The article also talks about how most containers they receive have some residual product left in the containers.

    Photo credit: www.jabat.com

    When you see a facility like the one in this picture, which stores old containers outside over an unsealed surface, over time residuals will leak out and contaminate the ground and ground water.  Under federal law the owner of the property is ultimately responsible for the environmental condition of their property.  What if the contamination migrates onto a neighboring property?

    What the article does not talk about is the huge environmental exposure storage and use of 55 gallon drums, totes, buckets… creates for businesses that use them.  How does the business buy the raw materials; FOB point of shipment, or FOB point of delivery?  Do they store them in a secure area with secondary containment?

    As your client’s professional risk manager, do you go out and inspect their rental properties to make sure a tenant is not creating an environmental exposure for your insured?  What is the tenant’s strategy to meet the environmental indemnification contained in the lease agreement they signed?

    Is the tenant’s financial assurance strategy to go out of business if they create an environmental liability, and leave the property owner with an illicit abandonment exposure?

    Working with Environmental Risk Managers we can coach you and your client’s on better managing and transferring their environmental exposures.

    ERMI Sales Strategy:  Every time you go out and inspect a client’s tenant, it creates a potential new sales opportunity for you with the tenant.  While serving your client’s better, you are also creating a great opportunity to increase your sales.  Win /Win!!!!!

    https://projects.jsonline.com/news/2017/2/15/chemicals-left-in-barrels-leave-many-at-risk.html

  • Illicit Abandonment

    environmental Strategist®, between the lines:  Illicit Abandonment is an environmental exposure, which most commercial real estate lessors don’t think about.

    Let me digress, back in 2008 when the economy tanked, we received a call from an insurance agent who explained his client had a leased facility and the tenants went out of business.  When the client went to inspect their property, they found raw materials stored in 55 gallon drums, totes and other storage containers, which were left behind by the bankrupt tenant.  None of the containers were leaking or causing an environmental liability, but to rent the building out the owner had to get rid of the raw materials and it cost more than $80,000.  That is a simple example of illicit abandonment and this exposure can be covered with pollution liability insurance.

    The article below talks about refurbishing of containers, such as 55 gallon drums, and the environmental exposures it creates for workers and neighbors to business those refurbish containers.  The article also talks about how most containers they receive have some residual product left in the containers.

    When you see a facility like the one in this picture, which stores old containers outside over an unsealed surface, over time residuals will leak out and contaminate the ground and ground water.  Under federal law the owner of the property is ultimately responsible for the environmental condition of their property.  What if the contamination migrates onto a neighboring property?

    What the article does not talk about is the huge environmental exposure storage and use of 55 gallon drums, totes, buckets… creates for businesses that use them.  How does the business buy the raw materials; FOB point of shipment, or FOB point of delivery?  Do they store them in a secure area with secondary containment?

    As your client’s professional risk manager, do you go out and inspect their rental properties to make sure a tenant is not creating an environmental exposure for your insured?  What is the tenant’s strategy to meet the environmental indemnification contained in the lease agreement they signed?

    Is the tenant’s financial assurance strategy to go out of business if they create an environmental liability, and leave the property owner with an illicit abandonment exposure?

    Working with Environmental Risk Managers we can coach you and your client’s on better managing and transferring their environmental exposures.

    ERMI Sales Strategy:  Every time you go out and inspect a client’s tenant, it creates a potential new sales opportunity for you with the tenant.  While serving your client’s better, you are also creating a great opportunity to increase your sales.  Win /Win!!!!!

    https://projects.jsonline.com/news/2017/2/15/chemicals-left-in-barrels-leave-many-at-risk.html

  • Legionnaires

    environmental Strategist, between the lines:  As we have reported in the past, Legionnaires Disease is a bacteria that can create an environmental liability for those using central air conditioning systems, fountains, room-air humidifiers, ice-making machines, whirlpool spas, water heating systems, showers, misting systems typically found in grocery-store produce sections, cooling towers used in industrial cooling systems, evaporative coolers, nebulizers, humidifiers….

    A little background:  Legionnaires is a bacteria that got its name after a 1976 outbreak at an American Legion Convention in Philadelphia.  221 people contracted the bacteria and 34 died.

    What risk management strategy are you implementing to address exposure to Legionnaires Disease for your client’s?  Pollution liability insurance can protect property owners or those with an insurable interest for their exposure to Legionnaires.

    Guests leave Las Vegas’ Rio hotel with Legionnaires’ disease

    https://www.usatoday.com/story/news/nation-now/2017/06/10/legionnaires-disease-las-vegas-rio-hotel/386558001/

  • Legionnaires

    environmental Strategist, between the lines:  As we have reported in the past, Legionnaires Disease is a bacteria that can create an environmental liability for those using central air conditioning systems, fountains, room-air humidifiers, ice-making machines, whirlpool spas, water heating systems, showers, misting systems typically found in grocery-store produce sections, cooling towers used in industrial cooling systems, evaporative coolers, nebulizers, humidifiers….

    Photo Credit: oyster.com

    A little background:  Legionnaires is a bacteria that got its name after a 1976 outbreak at an American Legion Convention in Philadelphia.  221 people contracted the bacteria and 34 died.

    What risk management strategy are you implementing to address exposure to Legionnaires Disease for your client’s?  Pollution liability insurance can protect property owners or those with an insurable interest for their exposure to Legionnaires.

    Guests leave Las Vegas’ Rio hotel with Legionnaires’ disease

    https://www.usatoday.com/story/news/nation-now/2017/06/10/legionnaires-disease-las-vegas-rio-hotel/386558001/