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Tire Sales & Service Companies
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Most commercial insureds assume that claims arising from their operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves most all commercial insureds exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Tire Sale & Service Companies

May include, but are not limited to; Leaking underground fuel and waste oil storage tanks; Untested underground fuel & waste oil/solvent tanks and pipes; Underground tanks which were removed/abandoned; Lack of information on existing and former underground tanks (e.g. age, contents, size, construction, cathodic protection, etc.); Poor housekeeping resulting in oil, fuel, and cleaning solvents being spilled; Leaking grease traps or oil/water separators that seriously pollute the soils and/or groundwater; Leaks from hydraulic fluid storage tanks; Accumulated old batteries which contain leached acidic liquids; Wastewaters flowing from service bays into the sanitary sewers; Electrical equipment containing PCBs; Wash waters from a car wash discharged into a storm sewer; No auditing of waste handling & disposal companies; Poor information on the possible adverse reactions and interactions of chemical compounds that accidentally commingle during a fire; Devaluation of property due to known or perceived pollution conditions; Other pollutants include asbestos, lead, mercury, cadmium, oil, diesel, etc.

Environmental Claim Scenarios
1. During the night, a fire broke out at an auto service garage. As the fire department put out the fire, their high-pressure hoses forced melting plastics, metals, insulation, roofing, drywall, chemicals, oils, and other materials to build up inside the building’s foundation, creating a toxic “sludge”. Some of the toxic “sludge” escaped the building and migrated onto to neighboring properties. The auto garage was responsible for all clean-up costs, 3rd party property damage, 3rd party business interruption, and natural resource damages, which totaled over $5,000,000. NOTE: fire departments are immune to pollution claims arising from their work while putting out fires.
2. A tire service station hired a waste hauler to transport their used materials, such as oils and lubricants, to a 3rd party disposal site. While in transport, the carrier got into an accident, causing the materials being hauled to spill. Under CERCLA, the tire service station must contribute for their apportionment of the load for cleanup cost, since federal law states that you own your waste from cradle to grave. Cost to settle the claim for the tire service station was $100,000.
3. A tire service and car wash garage had a wash bay’s piping system that released a substantial amount of cleaning solvents into soil and ground water. The cost to remediate the soil and ground water cost $250,000.
4. A tire service company was sued when contamination was discovered in the drinking water at a new residential development. After further investigation, it was determined that the pollutants were not used as part of the tire service company’s operations, not was their property the source of the contamination. The tire service garage was released from the lawsuit. However, they had already expensed over $60,000 in legal defense fighting the claim.
5. The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank was cracked. A release from the tank spilled 8,000 gallons into the containment. The diesel seeped into the underlying soils and required costly excavation and removal. The total cost of the claim exceeded $320,000.
6. At a tire service station, hydraulic fluid from a vehicle lifts escaped and seeped into the ground. Because lifts can be below ground as well as above ground, hydraulic fluid leaks could easily go undiscovered for long periods of time. Fortunately for this insured, the leak was quickly detected. Total cost for environmental testing and cleanup was only $75,000.
7. An unknown party illegally placed drums containing liquid waste into a dumpster at a behind an auto repair & service garage. The drums were not leaking, but the waste had to be properly disposed of. Cost to properly dispose of the waste was around $40,000.
8. While moving a shipment of tires, a forklift operator accidentally hit an anti-freeze fluid line. Cost to properly cleanup the antifreeze was roughly $25,000.
Benefits of Environmental Liability Insurance

Unlike most liability exposures impacting tire sales and service companies, pollution losses are not a frequency risk, but a severity risk. Because all tire sales and service companies face notable environmental exposures, consideration needs to be given to the economies of scale afforded with Environmental Liability Insurance as part of your risk transfer strategy, versus self-insurance.

Furthermore, many insureds only consider the cleanup costs associated with a pollution event. However, often the cleanup costs are far less than other costs that can arise from the loss.

Overlooked Benefits of Environmental Liability Insurance:
- Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
- Claim Management: All policies come with specialists to assist you in handling a claim. Who oversees communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
- Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Products

Premise Pollution Liability (PPL)

PPL is for businesses that are susceptible to economic loss caused by pollution that actually or allegedly originated from their operations. This coverage is for those who own, operate, lease, or have any other insurable interest in real property and the operations. Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions. Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site cleanup costs, legal defense expenses, non-owned disposal sites, transportation and more. PPL can be offered on multiyear terms. Most PPL policies cover above ground storage tanks.

Transportation Pollution Liability (TPL)

Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of their cargo. Broadened auto pollution liability (typically Form CA 9948) affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo.

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured while performing contracting services in the field should they cause or exacerbate an environmental condition. This coverage would be applicable for auto / equipment repair & service operations that provide “in the field” services at their customer’s locations.

CPL can be offered on a claims made or occurrence basis. Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage, and more. Contractors incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues. A major environmental liability exposure faced by all contactors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits. Do your subs/vendors have CPL insurance if they cause an environmental loss?

Underground Storage Tanks (UST)

Financial responsibility requirements ensure that owners and operators of underground storage tank systems have the ability to financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground system.
May 16, 2022
Sheet Metal Fabrication & Installation Companies
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. In other words, something that ends up where it doesn’t belong. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many commercial insureds assume that claims arising from their operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves commercial insureds with gaps in coverage. What pollutants are impacting your business?

Environmental Exposures Impacting Integrated Sheet Metal Companies

Include, but are not limited to: Spills from underground and/or aboveground storage tanks; Leaks from hydraulic fluid and lubricant storage tanks; Waste storage/handling practices; Transporting materials; Causing a pollution event while performing installation work at customer locations; Raw materials stored and utilized in large quantities; Wastewaters generated from cooling water; Unsealed truck ramps; Uncertainties about the historical use and conditions of property; Inadequate or no auditing of hazardous and non-hazardous waste handlers, transporter and disposal companies; Nuisance odors; Adverse reactions and interactions of chemical compounds that accidentally commingle during a fire; No emergency response training for employees; Halon releases from fire suppression equipment; Old septic systems; Utilities that cross property; Natural resource damages; Asbestos / lead containing materials; Silica; Mold; Vapor intrusion; Products cleaning and chemical treatments (wastewaters generally contain heavy metals, oil, grease and organic compounds); Uncontained floor drains around the plant; Obsolete and remote equipment storage (bone) yards where contaminants percolate into the soil/groundwater; Devaluation of property value to known or perceived pollution conditions; Illegal disposal of waste on your property by unknown 3rd parties (midnight dumping); and more…

Environmental Claim Scenarios

Premise Pollution Liability (PPL)
- During the night, an unknown party illegally placed drums of hazardous waste into a dumpster behind a sheet metal fabrication facility. The containers were not leaking, but the cost to properly dispose of the illegally dumped waste cost the property owner over $50,000.
- A sheet metal company operated a machine to cut sheet metal, a portion of which was located beneath the floor. For more than 20 years, lubricating oil from the machines moving parts seeped into the surrounding soils. When a nearby homeowner’s down gradient well used for potable water was tested, it contained total petroleum hydrocarbons. After further investigation, it was found the sheet metal company property was the source of the pollutant. Cost of remediation and 3rd party bodily injury claims exceeded $5,000,000.
- A sheet metal company was sued when contamination was discovered in the drinking water at a nearby residential development. After further investigation, it was determined that the pollutants did not originate from the sheet metal company’s property, removing them from the suite. However, the sheet metal company had already expensed over $50,000 fighting the claim.
- A sheet metal fabrication facility caught on fire. The fire department’s high-pressure hoses forced melting plastics, metals, insulation, roofing, drywall, chemicals, and other materials to build up inside the building’s foundation, creating a toxic “sludge”. Some of the “sludge” escaped the building and migrated onto to neighboring properties. The property owner was responsible for clean-up, 3rd party property damage & business interruption, and natural resource damages, which totaled over $3,500,000. NOTE: fire departments are immune to pollution claims arising from their work while putting out fires.
Contractors Pollution Liability (CPL)
- While working at a customer’s location, a contractor unknowingly drilled through a water pipe located beneath the floor. Over time, a substantial amount of mold developed within the building. The mold was discovered after a number of employees complained of rashes and wheezing. The contractor was held liable for the clean-up, 3rd party bodily injury and business interruption. Total cost of the loss exceeded $1M.
- While moving a large metal coil at a jobsite, the forklift operator hit a hydrofluoric acid aboveground storage tank releasing dangerous fumes into the neighboring community. Area residents and businesses were evacuated and several people were treated at the local hospital for fume inhalation. Claims for bodily injury and business interruption topped $400,000.
Transportation Pollution Liability (TPL)
- A sheet metal company hired a waste hauler to transport their waste materials to a 3rd party disposal site. During transportation the hauler got into an accident, causing the truck to overturn and spills its load into a nearby stream. Under CERCLA, the commercial insured must contribute for their apportionment of the load for cleanup cost since federal law states that you own your waste from cradle-to-grave. Cost to settle the claim for the insured was over $300,000.
- A contractor got into an accident while transporting raw materials to a jobsite, causing the fluids being hauled to spill. Costs for remediation and natural resource damages exceeded $90,000.
Benefits of Environmental Liability Insurance

Unlike most liability exposures impacting sheet metal companies, pollution losses are not a frequency risk, but rather a severity risk. Since every sheet metal company has numerous environmental liabilities, consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insurance.

Furthermore, most commercial insureds only consider the remediation costs associated with a pollution event. However, often times the clean-up costs are far less than other costs that can arise from the loss.

Overlooked Benefits of Environmental Liability Insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages

Premise Pollution Liability (PPL)

PPL is for insureds susceptible to economic loss caused by pollution that actually or allegedly originated from their operating locations. This coverage protects insured’s for environmental conditions that arise as a result of the operations on their property, or migrate onto their property from a neighbor. Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions. Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site clean-up costs, legal defense expenses, non-owned disposal sites, transportation and more. PPL can be offered on multi-year terms, and multiple properties can be packages together on a single policy. Most PPL policies cover above ground storage tanks.

Contractors Pollution Liability (CPL)

CPL Coverage protects insureds for pollution conditions they may cause or exacerbate while performing work at a 3rd party locations, weather the work is performed by the insured, or on their behalf. For sheet metal fabricators, CPL would cover them while performing installation and maintenance at customer locations, should they cause or exacerbate a pollution event while working.

Products Pollution Liability

Products Pollution Liability is for insureds that make and/or distribute a product, that if faulty, could cause a pollution incident. This coverage can be written on a stand-alone policy, or included on an environmental impairment liability policy. For Environmental Insurance markets to consider offering this coverage, they typically prefer products be intended for commercial use, as opposed to mass distribution to the general public.

Transportation Pollution Liability (TPL)

Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of their cargo. Broadened auto pollution liability (typically Form CA 9948) affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo.

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of underground storage tank systems have the ability to financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground system.
May 16, 2022
Sewer Cleaning Contractors
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many non-environmental contractors assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these contractors exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Sewer Cleaning Contractors

Include, but are not limited to: Spills during the loading, unloading, and transportation of cargo; Storm water run-off; Faulty hose hook-up and/or pump failures, which allow pollutants to be released; Natural resource damages; Damaging underground utilities; Contaminating water sources; Vandalism; Exacerbating pre-existing unknown pollution conditions; 3rd party business interruption; Odor drifting; Vapor intrusion; Illegal disposal of waste by 3rd parties; Legal defense for 3rd party nuisance claims; Mold; Lead; Asbestos; Non-owned disposal site liability; Pollution events impacting your owned operating facility; etc.

Environmental Loss Examples
1. A sewer cleaning contractor got into an auto accident and the truck caught on fire. The burning cargo created toxic fumes and when the fire department put out the fire it created contaminant runoff that flowed into a nearby stream. Cost to remediate the site and claims from third parties for bodily injury and property damage due to exposure to toxic fumes exceeded $800,000.
2. While cleaning a municipal sewer, the contractors hose / pumped system failed, allowing hundreds of gallons of waste to release in the surrounding area. Cost to remediate the waste exceeded $90,000. Serval area businesses were forced to shut down during the cleanup, costing the contractor an additional $200,000 in 3rd party business interruption claims.
3. A sewer cleaning contractor was sued by a municipality after a ruptured underground utility line was discovered at one of the contractor’s job sites, which had created a pollution situation. It was later determined that the contractor was not responsible for the line rupture. However, the contractor had already paid over $30,000 in legal defense costs.
4. A sewer cleaning contractor used an aboveground diesel tank at their operating location for fueling their vehicles. One day it was discovered that the secondary containment of the 10,000-gallon tank was cracked. A release from the tank spilled 8,000 gallons into the secondary containment, allowing several thousand gallons of fuel to seep into the underlying soils. Costs for investigation and remediation exceeded $320,000.
5. During the night, an unknown party illegally placed drums of hazardous waste into a dumpster behind a sewer cleaning contractor’s operating facility. The containers were not leaking, but the cost to properly dispose of the illegal dumped waste cost the contractor roughly $50,000.
Benefits of Environmental Liability Insurance

Because environmental losses are a severity risk (versus a frequency risk), sewer cleaning contractors generally lack the financial strength to self-insure their environmental liabilities. Since every sewer cleaning contractor is impacted by environmental liabilities, consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy versus self-insurance.

Three Overlooked Benefits of environmental liability insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy.

CPL can be offered on a claims made or occurrence basis. Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage ….

Contractors incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contractors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits. Do your subs/vendors have CPL insurance if they cause an environmental loss?

Transportation Pollution Liability

Generally, Business Auto policies will exclude pollution losses arising from spills or other releases of their cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo. Make sure you do not confuse the MCS-90 endorsement as being transportation pollution liability coverage, it is not, and the insurance carrier reserves the right to subrogate back against the insured for cost to clean up a release of the transported cargo.

Environmental Impairment Liability (EIL)

The pollution exposures impacting your contracting work in the field are well documented, but have you considered the pollution risks impacting your owned, rented or leased operating locations? Many contractors have physical locations that support their work in the field, which can include offices, storage buildings, equipment/vehicle maintenance facilities, bulk fuel storage, outdoor storage yards, raw materials, etc.

Environmental Impairment Liability (EIL) is for contractors that are susceptible to economic loss caused by pollution that actually or allegedly originated from their property. Sometimes referred to as Pollution Legal Liability (PLL), this coverage is for contractors who own, operate, lease, or have any other insurable interest in real property and the operations.

Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions. Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site cleanup costs, legal defense expenses, non-owned disposal sites, transportation and more. EIL can be offered on multiyear terms. Most EIL policies cover above ground storage tanks.
May 16, 2022
Septic Service Providers
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many non-environmental contractors assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these contractors exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Septic Service Providers

Include, but are not limited to: Spills during the loading, unloading, and transportation of cargo; Completed operations exposures including incomplete line hookup or improper system construction causing spills or emissions; Parking equipment over unsealed surfaces allowing contaminants such as oil, fuel, antifreeze, and hydraulic fluid to pollute the ground; releases from storage tanks; Improper land application; Storm water run-off; Natural resource damages; Site preparation/excavation work through preexisting unknown contaminated soils or impacting utilities, underground storage tanks, or old septic systems; Water contamination; Raw materials stored at job sites; Vandalism; Exacerbation of pre-existing contamination …

Environmental Loss Examples
- A school contracted sewer line work. While dismantling piping, the contractor discovered a mercury spill that resulted in mercury contamination throughout the building. Costs to clean up the contamination and restore the building to its original condition was $350,000. The contractor was named in the suit for exacerbating the mercury spill.
- A septic contractor was subject to cleanup costs and business interruption expenses in excess of $500,000 when they ruptured an unmarked gas line while performing routine septic services.
- A residential septic contractor was subject to defense costs exceeding $25,000, in addition to property damage and bodily injury claims exceeding $400,000 from a residential community. During sewage installation, a subcontractor improperly tied in piping. This caused raw sewage to migrate into the underlying groundwater and contaminate residential wells.
- The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank was cracked. A release from the tank spilled 8,000 gallons into the containment. The diesel seeped into the underlying soils. Total cost for investigation, removal and disposal exceeded $320,000.
- A septic waste hauler got into an auto accident and the truck caught on fire. The burning cargo created toxic fumes and when the fire department put out the fire it created contaminant runoff that flowed into a nearby stream. Cost to remediate the site and claims from third parties for bodily injury and property damage due to exposure to toxic fumes exceeded $800,000.
- A septic contractor hired a waste hauler to transport its used motor oil. The waste hauler got into an accident which caused the contents of the tanker to be released directly into a creek. Under Federal law (CERCLA) you own your waste from cradle to grave so the carrier had to pay their apportionment of the remediation costs which totaled $450,000.
Benefits of Environmental Liability Insurance

Septic service providers generally lack the financial strength to self-insure their environmental liabilities. Since every septic service provider is impacted by environmental liabilities, consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy versus self-insurance.

The Three Main Benefits environmental liability insurance offers:
- Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
- Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
- Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance for Septic Service Providers

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy.

CPL can be offered on a claims made or occurrence basis. Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage ….

Contractors incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contractors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits. Do your subs/vendors have CPL insurance if they cause an environmental loss?

Transportation Pollution Liability

Generally, Business Auto policies will exclude pollution losses arising from spills or other releases of their cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo. Make sure you do not confuse the MCS-90 endorsement as being transportation pollution liability coverage, it is not, and the insurance carrier reserves the right to subrogate back against the insured for cost to clean up a release of the transported cargo.

Environmental Impairment Liability (EIL)

EIL is for septic service providers susceptible to economic loss caused by pollution that actually or allegedly originated from their fixed site operations. Sometimes referred to as pollution legal liability, this coverage is for those who own, operate, lease, or have any other insurable interest in real property and the operations. Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions. Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site cleanup costs, legal defense expenses, non-owned disposal sites, transportation and more. EIL can be offered on multi year terms. Most EIL policies cover above ground storage tanks.

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of underground storage tank systems can financially handle a release from a regulated underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third-party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground system along with defense costs.
May 16, 2022
Roofing Contractors
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many non-environmental contractors assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these contractors exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Roofing Contractors

A roofing contractor is a prime example of an insured that does not perform environmental contracting services but has multiple exposures for pollution-related losses. Sealants, adhesives, coatings, and other products used to spray, seal, or repair roofing systems can often be toxic if inhaled. If a contractor fails to properly close off or turn off the HVAC system or properly ventilate the building, fumes from these products can be extremely harmful to the individuals exposed to them within the building.

The Pollution Exclusion within the insured’s General Liability policy is not likely to cover a Bodily Injury or Property Damage claim in this scenario, as most GL policies will exclude this type of claim arising from the discharge, dispersal, seepage, migration, release, or escape of a pollutant, such as fumes from one of the products used by the roofing contractor. The contractor could also face a Loss of Use claim if the building were deemed unusable for an extended period.

Roofing contractors are also susceptible to other pollution claims, such as mold. By simply improperly installing a roofing system, the risk of water intrusion into a structure increases. Water entering the roofing system and structure can collect and create an ideal environmental for mold, which can be harmful to individuals within the building. The cost of locating and remediating mold can also be extensive as the structure will need to be thoroughly inspected to remove and prevent any moisture that could cause re-growth. Simple defects in the installation or repair of a roofing system can cause large pollution related losses for your insured.

Environmental Claim Scenarios
1. A residential construction company was sued when mold was discovered in multiple spec homes built by the contractor and its subs. Because it could not be determined which party was responsible, the general contractor and a number of its subs were all held liable, and were ordered by a court of law to share in the mold remediation costs.
2. A roofing contractor applied polyurethane foam along with layers of elastomeric protective coatings to the roof of a commercial building. After completion of the building, workers in the building began to suffer respiratory problems caused by irritants in the coatings. Suits for bodily injury and business interruption were filed against the general contractor and roofing subcontractor
3. A roofing contractor installed a new roof at a 250,000 square foot office building and shopping center. The roofing material decomposed and caused a chemical reaction, emitting fumes into the office building. The contractor faced a $400,000 property damage and Loss of Use claim.
4. While working on a historical residential property, a roofing contractor used a hole saw to cut through a ceiling. Unknown to the contractor, the saw inadvertently disturbed and released asbestos-containing insulation material. The contractor had to pay cleanup costs for the asbestos fibers released throughout the building, costing in excess of $20,000.
5. A roofing contractor had to pay remediation costs, and business interruption expenses when mold was discovered in a commercial building where the roofing contractor had installed a new roof the previous year. Total cost of the claim exceeded $300,000.
6. A roofing contractor was installing a new roof on a commercial property when an employee accidentally drilled through a small water pipe. The contractor did not realize the leak occurred and a substantial amount of mold grew between the walls before anyone noticed. The roofing contractor was held liable for the clean-up of the mold, as well as defense of 3rd party bodily injury claims. Total cost of the loss exceeded $70,000.
7. A Roofing contractor installed a new roof at a 250,000 square foot office building and shopping center. The roofing material decomposed and caused a chemical reaction, emitting fumes into an office building. The contractor faced a $400,000 property damage and loss of use claim.
Benefits of Environmental Liability Insurance

Unlike most liability exposures impacting Roofing Contractors, pollution losses are not a frequency risk, but rather a severity risk. Because all Roofing Contractors have notable environmental exposures, consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insurance.

Furthermore, most commercial real estate owners only consider the remediation costs associated with a pollution event. However, often the clean-up costs are far less than other costs that can arise from the loss.

Overlooked Benefits of Environmental Liability Insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and must expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who oversees communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: Most the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy. Policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage, etc. Contractors incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contactors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits.

Transportation Pollution Liability

Generally, commercial auto policies will exclude pollution losses arising from spills or other releases of transported cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and overturn of transported cargo.

Environmental Impairment Liability (EIL)

EIL is for contractors that own, rent, lease, operate or have any other insurable interest in real property that can be susceptible to pollution liabilities that actually or allegedly originated from the insured property. Coverage can include: Pre-existing unknown pollution; new pollution conditions; first party on-site clean up; third party bodily injury, property damage, business interruption and extra expense; offsite cleanup costs; legal defense expenses; transportation pollution liability; offsite disposal coverage…. Multi year term policies can be negotiated.

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of underground storage tank systems can financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third-party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground tank system.

Incidental Professional Liability

Professional exposures are generally excluded from General Liability and monoline Contractors Pollution Liability policies. In the course of their normal operations, contractors face all types of professional exposures. They may make slight adjustments on the provided plans to get the job done properly, they may supervise subcontractors, or provide other recommendations which could potentially be questioned in the event of a claim. In the event of a professional claim, will your insurance provide coverage?
May 16, 2022
Restoration Contractors
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. In other words, something that ends up where it doesn’t belong. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many insureds assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these insureds exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Restoration Contractors

May include, but are not limited to: failure to identify or mischaracterize contamination during surveys; faulty design of remedial action and management plans causing bodily injury; diagnostic laboratory errors; hazardous air emission from incomplete abatement; inaccurate post-abatement certification; impacting underground structures from subsurface investigation activities; cross contamination of aquifers due to improper design, selection of materials, equipment leading to remedial system failure; improper installation and permitting of remedial systems leading to hazardous waste releases; failure to notify public and/or EPA of contamination or releases; failure to effectively monitor and maintain safe working conditions; CERCLA liability due to O&M activities at Superfund sites and from waste disposal site selection; vicarious liability due to use of subcontractors and sub-consultants; inadequate or improper storage of samples; performance of inappropriate/incorrect tests or analytical methods; exacerbation of preexisting contamination during excavation and cleanup efforts; inadvertent mixing of incompatible wastes; release of oils/fuels from equipment; completed operations exposures due to incomplete or improper line hookup and remedial system construction….

Claim Scenarios
1. A fire water restoration contractor was accused of not fully remediating the mold at a home where he was contracted to do so. After further investigation, it was found that the newly discovered mold was caused by an error made by a plumber, who has worked on the property previously. The restoration contractor was removed from the suit. However, they had already incurred over $20,000 in legal defense costs.
2. A homeowner hired restoration contractor to dry out a house from water damage. The contractor, without testing for asbestos, starts and finishes the dry out process, inadvertently disturbing asbestos which releases asbestos fibers into the air. After the job is complete, an industrial hygienist, hired by the homeowner, tests for asbestos and finds that it has spread throughout the house due to the dry out process. This results in cleanup costs and allegations of bodily injury resulting from asbestos inhalation, including associated legal defense expenses.
Benefits of Environmental Liability Insurance

Because environmental losses are a severity risk, rather than a frequency risk, the majority of restoration contractors lack the financial strength to self-insure their potential environmental liabilities. Since every restoration contractor has notable environmental exposures, consideration to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insuring.

Three Overlooked benefits of environmental liability insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy. Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage.

Environmental service providers incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contractors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits. Do your subs/vendors have CPL insurance if they cause an environmental loss?

Environmental Impairment Liability (EIL)

EIL is for environmental service providers that own, rent, lease, operate or have any other insurable interest in real property (a fixed site facility such as a service garage and shop, transfer/recycling facility, landfill….) that can be susceptible to pollution liabilities that actually or allegedly originated from the insured property.

Coverage can include: Pre-existing unknown pollution, new pollution conditions, first party on-site clean up, third party bodily injury, property damage, business interruption and extra expense, off site cleanup costs, legal defense expenses, transportation pollution liability, offsite disposal coverage…. Multi year term policies can be negotiated.

Transportation Pollution Liability

Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of transported cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo.

Incidental Professional Liability

Professional exposures are generally excluded from General Liability and monoline Contractors Pollution Liability policies. In the course of their normal operations, contractors face all types of professional exposures. They may make slight adjustments on the provided plans to get the job done properly, they may supervise subcontractors, or provide other recommendations which could potentially be questioned in the event of a claim. In the event of a professional claim, will your insurance provide coverage?

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of underground storage tank systems have the ability to financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground tank system.

Property Transfer Liability

When buying or selling property there can be unknown preexisting environmental conditions. Since a Phase I or Phase II survey cannot guarantee uncovering all potential environmental liabilities, insurance companies have created property transfer insurance. This coverage protects the new owner or any party with an insurable interest, against unknown environmental conditions that may be discovered during the policy period, that were not caused by the new owner. Property transfer coverage assists to keep the property at its maximum value while allowing the insured to negotiate more favorable loan terms than property not supported by this coverage.
May 16, 2022
Restaurants
What is a Pollutant?

Any material, substance, liquid, product… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Most commercial insureds assume that claims arising from their operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves commercial insureds with gaps in coverage. What pollutants are impacting your business?

Environmental Exposures Impacting Restaurants

May include, but are not limited to: Waste grease, fat or used cooking oil; Pollution cleanup after a fire is extinguished; Agricultural chemicals on / in food; Cooking oil fumes (COFs); Air emissions from cooking operations such as with Curry or open flames; Products used for pest management; Cleaning Chemicals; Storm water runoff; Pollution from neighboring properties migrating onto yours; Vapor intrusion; Contaminated well water; Raw sewage backup or rupture; Sick building syndrome; Asbestos; Lead; Mold / Legionella; Historic site conditions; Aboveground and/or underground storage tanks; Leaks from elevator hydraulic fluid storage tanks; Storage and use of landscaping chemicals (Glyphosate); Natural resource damages; Spills/releases during loading/unloading operations from trucks or other delivery devices; Waste handling and disposal operations; No auditing of waste handling and disposal companies; Possible adverse reactions and interactions of chemical compounds that accidentally commingle during a fire; Language barriers with employees; Easements that cross the property which may leak or spill hazardous materials; Impacting underground utilities during construction; Use of polystyrene foam products; No emergency and spill control plans; Waste Water from operations; Release of refrigerants; Contractors hired to perform services on your owned property (HVAC, refrigeration, landscaping, plumbing, etc.), and more…

Environmental Claim Scenarios
1. As the result of a fire, a restaurant was subject to clean up cost more than $400,000. While the fire department was extinguishing the fire that started in the storage room, inventory commingled creating a hazardous contaminant that went into the local storm water system. The contaminants also migrated onto neighboring properties. Claims were for cleanup, third party bodily injury / property damage / business income.
2. A restaurant located in a food court, had an English speaking but not English reading employee accidentally mixed non-compatible chemicals for cleaning. The fumes from the chemicals forced the evacuation of all the building tenants while clean up took place. Third party bodily injury, property damage and business interruption claims exceeded $1M.
3. A grease trap tank failed but it was not discovered until the restaurant was putting on an addition. Excavators digging the foundation came across oily type soils. Environmental engineers concluded the problem to be coming from the failed grease trap tank. Cost to clean up the site and delays in construction cost the restaurant in excess of $400,000.
4. Several chemicals comingled when an employee accidentally knocked them over in the storage room. The chemicals created a toxic vapor cloud in the restaurant. Guests were evacuated but several were hospitalized for inhalation of fumes. Attorneys filed suit for third party bodily injuries.
5. A 1,000-gallon diesel aboveground storage tank used for the backup power generator for a restaurant was in a concrete secondary containment that was cracked. A rupture of the tank spilled 700 gallons into the containment that seeped into the ground causing excavation and disposal of the contaminated soils along with engineering and legal fees exceeding $110,000.
6. Legionella was discovered in the water supply of a restaurant. The restaurant had to be vacated while their water system went through treatment for the Legionella. Several guests sued for bodily injury from exposure to Legionella.
7. A restaurant was subject to cleanup costs and business interruption expenses when a contractor they hired for an addition ruptured an unmarked petroleum pipeline. The contractor did not have Contractors Pollution Liability insurance so as the property owner the restaurant was responsible. Total costs exceeded $700,000. Lawsuits filed against the contractor caused for the contractor’s bankruptcy.
8. An Indian restaurant shared an air conditioning duct with a retail fur store. The air emissions from the curry soiled the furs and a claim was filed against the restaurant for damage to the furs. The carrier denied coverage saying the curry was a pollutant and the court agreed and held the Indian restaurant responsible for the environmental liabilities created by the curry fumes.
9. A Buffalo Wild Wings employee died and 10 others we hospitalized after being exposed to a cleaner (Super 8) inside the restaurant. Authorities said Super 8 is a common cleaner used in the restaurant industry and is relatively safe when used correctly. But, if it gets mixed with Ammonia, the solution emits a harmful gas call Chloramine. The medical director for the National Capital Poison Center said Super 8 becomes dangerous when mixed with other chemicals.
Benefits of Environmental Liability Insurance

Because environmental losses are a severity risk, rather than a frequency risk, most restaurants lack the financial strength to self-insure their potential environmental liabilities. For this reason, restaurants should consider to the economies of scale afforded with environmental liability insurance as part of their risk transfer strategy, versus self-insuring.

Additionally, most commercial insureds only consider the remediation costs associated with a pollution event. However, often the clean-up costs are far less than other costs often associated with a pollution event.

Three Overlooked benefits of Environmental Liability Insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who oversees communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Products

Environmental Impairment Liability (EIL)

EIL is for restaurants susceptible to economic loss caused by pollution that actually or allegedly originated from their operations. Sometimes referred to as pollution legal liability this coverage is for those who own, operate, lease, or have any other insurable interest in real property and the operations. Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions. Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site cleanup costs, legal defense expenses, non-owned disposal sites, transportation and more. EIL can be offered on multi year terms. Most EIL policies cover above ground storage tanks.

Property Transfer Coverage

When buying or selling property there can be unknown preexisting environmental conditions. Since a Phase I or Phase II survey cannot guarantee uncovering all potential environmental liabilities, insurance companies have created property transfer insurance. This coverage protects the new owner or any party with an insurable interest, against unknown environmental conditions that may be discovered during the policy period, that were not caused by the new owner. This coverage not only helps to keep the property at its maximum value, it will assist the purchaser in being able to secure the necessary financing to complete their transaction.

Transportation Pollution Liability (TPL)

Generally, business auto or truckers’ policies will exclude pollution losses arising from spills or other releases of their cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo. Note: An MCS-90 endorsement is not pollution coverage.

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of regulated underground storage tank systems have the ability to financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground system.

Note: For Restaurants you have potential indirect environmental exposures from the vendors you hire to perform services. Should your vendors cause an environmental problem or exacerbate an existing environmental issue their general liability insurance policy generally will have either an absolute or total pollution exclusion. In order to be protected you should make sure your vendors have the proper environment insurance coverage before they do any work on your behalf. Typically, Contractors Pollution Liability (CPL) insurance.
May 16, 2022
Residential Contractors
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many non-environmental contractors assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these contractors exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Residential Contractors

Include, but are not limited to: storm water runoff; vapor intrusion; impacting underground storage tanks; completed operations exposures including incomplete line hookup or improper system construction causing spills or emissions; fumes, emissions, or spills of chemicals used during construction (finishers, sealants, adhesives, solvents, curing compounds); improper handling and disposal of CCA Treated lumber; HVAC causing build up or release of airborne bacteria; mold resulting from water intrusion or moisture encapsulation; spills from mobile storage tanks; release of oils/fuels as a result of vandalism; site preparation/excavation work through preexisting contaminated soil or impacting utilities; lead paint; illegal disposal of waste in unsecured roll of boxes; unknowingly using contaminated soil as fill; spills and releases from application of asphalt, asbestos; silica and more…

Environmental Claim Scenarios
1. An excavation contractor was preparing a site for a new residential home. During the weekend, heavy rains caused the site containment barriers to fail, allowing fill material to flow into a nearby stream. Cost to remediate the stream, and natural resource damages exceeded $100,000.
2. A remodeling contractor was reconditioning a tile floor in a home undergoing extensive renovation. The workers inhaled toxic vapors from the sealants used in the reconditioning process. Several subcontracted workers in the building filed bodily injury claims totaling $175,000 against the contractor.
3. A residential construction company was sued when mold was discovered in multiple spec homes built by the contractor and its subs. The general contractor was ordered by a court of law to pay mold remediation costs in excess of $100,000. The contractor also had legal fees of $35,000.
4. When putting in a foundation, a concrete contractor ruptured an unmarked natural gas line and had to pay cleanup costs exceeding $100,000.
5. A residential plumber was called in to do a simple repair on a third floor of a residential property. The contractor replaced the leaky flush valve and left the job. As this was a second home, it was several weeks before anyone noticed the water running out of the back door. When the owners got to the house, they found mold growing throughout the first and second floors, hanging in some places like Spanish Moss. The entire house had to be gutted and refinished, costing the contractor well over $600,000.
6. A drywall contractor was hanging new drywall at a home when an employee accidentally drilled through a small water pipe located behind the wall. The drywall contractor did not realize the leak occurred and a substantial amount of mold grew between the walls before anyone noticed. The drywall contractor was held liable for the clean-up of the mold, as well as defense of 3rd party bodily injury claims. Total cost of the loss exceeded $50,000.
7. A residential septic contractor was subject to defense costs exceeding $25,000, in addition to property damage and bodily injury claims exceeding $400,000 from a residential community. During sewage installation, a subcontractor improperly tied in piping. This caused raw sewage to migrate into the underlying groundwater and contaminate residential wells.
8. During renovation, a HVAC contractor removed ductwork from a home’s HVAC system. It was later determined that the ductwork was home to a dangerous mold. The dismantling activities and the on-site storage of the ductwork caused the mold to spread in the air throughout the home. Other contractors working on the property became sick from the mold; some were even critically injured. The contractor was found liable for the spread to the mold and faced bodily injury and property damage claims in excess of $1 million.
9. A glass contractor installed new windows at a residential property that had been damaged by a recent storm. 6-months after the job was completed mold was discovered in the home. The property owner sued a number of the contractors, including the glass contractor for faulty installation. After further investigation, it was determined that the glass contractor was not at fault and the suit was dropped. However, the glass contractor had already paid over $40,000 in legal defense costs.
10. While working on a residential property, an electrical contractor used a hole saw to cut through a ceiling. Unknown to the contractor, the saw inadvertently disturbed and released asbestos-containing insulation material. The contractor had to pay cleanup costs for the asbestos fibers released throughout the building, costing in excess of $20,000.
11. A landscaper was applying fertilizers and pesticides at a job site when a nearby neighbor complained of being impacted by a chemical drift. The neighbor filed a lawsuit claiming bodily injury as a result of over application and neglect on the part of the landscaper. Because he had no CPL coverage in place, the landscaper had to expense $40,000 in legal defense costs, even though he was ultimately released from the suit.
12. An asphalt paving contractor had a piece of equipment puncture a hole in the side of their liquid asphalt truck on a job site. More than 800 gallons of liquid asphalt was spilled before they were able to contain the release. Clean up costs and business interruption was in excess of $150,000.
13. A residential contractor renovated the interior of a residential house built in the 1950s. The renovation involved paint removal from interior walls, window trim and door jambs. During the course of renovation, the contractor used a plastic barrier to seal the areas where he was working. The homeowners continued to occupy the house during renovations. Additionally, the wife was six months pregnant. Renovation was finished prior to the birth of the baby; however, upon birth, the child tested positive for blood lead poisoning. After investigating the source of the lead, the couple sued the contractor for bodily injury as well as potential loss of future wage potential (due to a possible decreased IQ level for the baby) in the amount of $500,000.
Benefits of Environmental Liability Insurance

Because environmental losses are a severity risk, rather than a frequency risk, most General Contractors lack the financial strength to self-insure their potential environmental liabilities. Since every General Contractor has notable environmental exposures, consideration to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insuring.

Furthermore, most commercial insureds only consider the remediation costs associated with a pollution event. However, often the clean-up costs are far less than other costs that often arise from the loss

Overlooked Benefits of Environmental Liability Insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy. Policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage, etc. Contractors incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contactors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits.

Transportation Pollution Liability

Generally, commercial auto policies will exclude pollution losses arising from spills or other releases of transported cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and overturn of transported cargo.

Premise Pollution Liability (PPL)

PPL is for contractors that own, rent, lease, operate or have any other insurable interest in real property that can be susceptible to pollution liabilities that, or allegedly originated from the insured property. Coverage can include: Pre-existing unknown pollution; new pollution conditions; first party on-site clean up; third party bodily injury, property damage, business interruption and extra expense; offsite cleanup costs; legal defense expenses; transportation pollution liability; offsite disposal coverage…. Multi year term policies can be negotiated.
May 16, 2022
Remediation Contractors
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. In other words, something that ends up where it doesn’t belong. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.

Many insureds assume that claims arising from operations are covered by the general liability policy. However, claims resulting from a “pollution incident” are excluded from most general liability policies, which leaves many of these insureds exposed to potentially uncovered claims. What pollutants are impacting your business?

Environmental Exposures Impacting Remediation Contractors

May include, but are not limited to: failure to identify or mischaracterize contamination during surveys; faulty design of remedial action and management plans causing bodily injury; diagnostic laboratory errors; hazardous air emission from incomplete abatement; inaccurate post-abatement certification; impacting underground structures from subsurface investigation activities; cross contamination of aquifers due to improper design, selection of materials, equipment leading to remedial system failure; improper installation and permitting of remedial systems leading to hazardous waste releases; failure to notify public and/or EPA of contamination or releases; failure to effectively monitor and maintain safe working conditions; CERCLA liability due to O&M activities at Superfund sites and from waste disposal site selection; vicarious liability due to use of subcontractors and sub-consultants; inadequate or improper storage of samples; performance of inappropriate/incorrect tests or analytical methods; exacerbation of preexisting contamination during excavation and cleanup efforts; inadvertent mixing of incompatible wastes; release of oils/fuels from equipment leaks and vandalism; trench collapse due to improper shoring; completed operations exposures due to incomplete or improper line hookup and remedial system construction….

Environmental Claim Scenarios
1. A consultant hired a driller to perform sampling of subsurface soils. The consultant directed the driller to drill and draw a sample. The driller accidentally advanced through a UST. Both the consultant and driller were sued for $140,000 in damages, including UST repair and soil remediation.
2. A consultant provided plans and specification for the installation of monitoring wells at a contaminated facility. Contamination had seeped from the ground surface into a shallow aquifer. Following installation of monitoring wells, sampling showed evidence of contamination in both the shallow aquifer and in lower lying aquifer. The facility owner filed a claim against the consultant, alleging that well placement (location and depth) was responsible for the cross-contamination of the lower lying aquifer. The settlement amounted to $250,000.
3. During remedial activities at a Superfund Landfill site, a remedial action contractor (RAC) inadvertently crushed several drums that were improperly classified as empty. As a result, several gallons of hazardous contents were released, causing localized soil contamination. The RAC failed to notify the EPA of the release, which resulted in both criminal and civil actions against the contractor. The RAC was held liable under CERCLA and was required to pay penalties exceeding $6.1 million.
4. A remediation contractor excavated a small underground diesel tank near a distribution warehouse and noted that stained soil surrounded the tank. The project manager advised the firm to continue excavating around the tank, which pulled up contaminated soil. Because of the foundations proximity to the distribution center, the excavation of contaminated material without proper shoring equipment caused the building’s wall to collapse. The distribution center’s walls and roof also collapsed. Reconstruction costs, business interruption, lost profits and additional remediation expenses totaled $1.2 million.
5. A fire water restoration contractor was accused of not remediating mold at a home where he was contracted to do so. The homeowner had other work performed that caused the mold but brought all contractors and sub-contractors into a lawsuit. The insured incurred $30,000 in costs to defend themselves against the groundless claim.
6. An environmental services contractor was hired to perform a tank cleaning by their client. During the tank cleaning, a 4-inch hose connected to the contractor’s vacuum truck failed. 127 gallons of fuel oil was released onto the ground and flowed into an adjacent waterway. The contractor called the 24-hour/7-days a week emergency response hotline, listed in their Contractor’s Pollution Liability (CPL) policy, immediately after the spill. The insurer coordinated with their local environmental technical consultant and the contractor to respond to the spill. An experienced environmental remediation firm was sent to the site of the release to start the remediation effort. The local firm also interacted with the State environmental agency on the contractor’s behalf. The contractor’s CPL policy paid $209,000 for expenses associated with this release.
7. An asbestos abatement contractor was hired along with an electrical contractor to remove asbestos insulation from ceiling mounted light fixtures in an attic. The asbestos contractor removed the insulation and the electrical contractor was to remove and replace the fixtures. After hours, someone turned on the lights and the exposed bulb ignited the new insulation which started a fire. In trying to extinguish the fire, water was sprayed in the attic. The result was fire and smoke damage as well as water damage to the structure and contents.
8. A mold abatement firm was contracted to remediate mold from a residential condominium complex. The scope of the contract was for mold remediation but only after the moisture intrusion problem had been repaired by the claimant. Under the direction of the construction manager and environmental consultant on the project, the Insured completed the mold abatement of the buildings. Plaintiff sued for Bodily Injury and Property Damage for mold recurrence. Insured alleges the repairs to the roof and chimney failed to correct the moisture problems. Carrier is incurring costs associated with the defense coverage.
9. A remediation firm was hired for an abatement project in an old warehouse. During the selective demolition process, the contractor damaged a hidden water pipe behind the wall. They immediately shut off the water but contents stored in that area were damaged. Carrier is paying property damage for the structure and the warehouse contents.
10. A fire and water damage restoration contractor was hired to do the emergency water extraction of a residence. The homeowner later found dust, had it tested and found that it contained lead. The homeowner’s personal insurance carrier is alleging the contractor was not properly qualified to do the emergency water extraction, thus causing lead contamination. Carrier has set the reserve at $15,000 for damages and $5,000 for defense costs.
11. A contractor was subject to cleanup costs after vandals opened an onsite mobile refueling tank causing diesel fuel to be released onto virgin soil.
Benefits of Environmental Liability Insurance

Because environmental losses are a severity risk, rather than a frequency risk, the majority of remediation contractors lack the financial strength to self-insure their potential environmental liabilities. Since every remediation contractor has notable environmental exposures, consideration to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insuring.

Three Overlooked benefits of environmental liability insurance:
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations, etc.
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor cause an environmental loss.
Environmental Liability Insurance Coverages for Remediation Contractors

Contractors Pollution Liability (CPL)

Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services. CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy. Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured. Most policies can be endorsed to cover transportation pollution liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage.

Environmental service providers incorporating CPL coverage as part of their risk transfer strategy, drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.

A major environmental liability exposure faced by all contractors lies in who they are doing business with. If there is an environmental loss at a job site, innocent contractors can and do get named in lawsuits. Do your subs/vendors have CPL insurance if they cause an environmental loss?

Professional Liability

The absolute pollution exclusion in a standard commercial general liability policy excludes sudden and accidental, and gradual pollution losses due to the release of “solid, liquid, gaseous, or thermal irritants or contaminants, including smoke, vapor, soot, fumes, acid, alkalis, chemicals and waste”…. Engineering firms who work in solving environmental exposures faced by their clients need to have coverage for negligent acts, errors or omissions that may result in damages caused by pollution conditions.

There are various ways coverage can be written to protect the engineering firm and their clients. Professional liability on a standalone basis or professional liability including general liability (GL) is available. For engineering firms that may also get involved in doing hands on work at the job site, they can add to the coverage contractors pollution liability (CPL) insurance, (refer to contractors pollution liability insurance for more details). Coverage for the professional liability is done on a claims made basis. For the GL and CPL, coverage can be on a claims made or occurrence form basis.

You have to also keep in mind there are contractors that in the performance of their work may act in a consultants or engineers capacity. You need to make sure you offer your client the broadest program available to meet their needs. By combining the coverage’s under one contract you are eliminating potential gaps in coverage. Coverage can be purchased on a job specific basis or to cover all the work performed by your client on an annual basis.

Coverage applies specifically to services / operations identified under the policies declaration page.

Environmental Impairment Liability (EIL)

EIL is for environmental service providers that own, rent, lease, operate or have any other insurable interest in real property (a fixed site facility such as a service garage and shop, transfer/recycling facility, landfill….) that can be susceptible to pollution liabilities that actually or allegedly originated from the insured property.

Coverage can include: Pre-existing unknown pollution, new pollution conditions, first party on-site clean up, third party bodily injury, property damage, business interruption and extra expense, off site cleanup costs, legal defense expenses, transportation pollution liability, offsite disposal coverage…. Multi year term policies can be negotiated.

Transportation Pollution Liability

Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of transported cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and overturn of transported cargo.

Underground Storage Tanks

Financial responsibility requirements ensure that owners and operators of underground storage tank systems have the ability to financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground tank system.

Property Transfer Liability

When buying or selling property there can be unknown preexisting environmental conditions. Since a Phase I or Phase II survey cannot guarantee uncovering all potential environmental liabilities, insurance companies have created property transfer insurance. This coverage protects the new owner or any party with an insurable interest, against unknown environmental conditions that may be discovered during the policy period, that were not caused by the new owner. Property transfer coverage assists to keep the property at its maximum value while allowing the insured to negotiate more favorable loan terms than property not supported by this coverage.
May 16, 2022
Real Estate Owners & Developers
What is a Pollutant?

Any material, substance, liquid, product, etc… which is introduced into an environment for other than its intended use / purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances. What pollutants are impacting your operation?

Environmental Exposures Impacting Real Estate Owners and Developers

May include, but are not limited to; Pollution from neighboring properties migrating onto yours, i.e. PFAS, Glyphosate, petroleum…; Legionella / mold; Storm water runoff; Environmental cleanup and associated liabilities created after a fire is put out; Vapor Intrusion; Historical contamination from agriculture, mining, lagoons, landfills, manufacturing, scrap yards…; Natural resource damages; Easements that cross the property which may leak or spill hazardous materials; Leaks from elevator hydraulic fluid storage tanks; Impacting sensitive areas such as wetlands or endangered species; Corroded wastewater and storm water sewers; Excavation through and spreading of unknown preexisting contaminated soil; Impacting groundwater from drilling and excavation work (i.e. cross contamination of aquifers, etc.); Old and/or unknown leaking underground storage tanks; Impacting underground utilities during construction; Collapse and/or or explosion during and after construction; No auditing of waste handling and disposal companies; Tenants using or storing environmentally sensitive materials, chemicals, waste….; Spill of oils/fuels/chemicals brought onsite; Vandalism; Sick building syndrome; Asbestos; Lead; loading and unloading products/materials from tucks, rail road, barges, aircraft over unsealed ground; Past/present use of septic systems; Above ground or underground storage tanks; Adverse reactions and interactions of chemical compounds that accidentally commingle during a fire; Wastewaters generated from human septage; Janitorial cleaning compounds; No emergency and spill control plans; nuisance odors; Illegal dumping or burial of hazardous materials; Illicit abandonment; Brownfields….

Environmental Loss Examples
1. Several office employees became ill from Legionella. The cause of the Legionella was the improper sealing for the ducts during the installation of a new HVAC unit, which allowed condensation to build up. The employees sued the property owner and the contractor.
2. A warehouse housing a variety of materials caught on fire. Hazardous materials caught on fire allowing vapors to impact neighbors and contaminated the ground and ground water. Residents filed suits for bodily injury from inhalation of toxic vapors, cost for citizens suits and remediation exceeded $500,000.
3. A real estate developer placed a new building on the site of a former parking lot. During excavation, petroleum hydrocarbon contamination was discovered. Cleanup costs exceeded $700,000.
4. A real estate investment trust (REIT) owned several parcels of vacant land in a remote area. When the owner and contractor visited the site to begin construction, they discovered that several piles of unidentified waste had been illegally dumped on the property. The owner had the piles tested, at a cost of several thousand dollars. The piles were determined to contain hazardous waste, and the owner’s cost to dispose of it exceeded $250,000.
5. A real estate limited partnership acquired property previously used for farming on which they planned to build a mall. The firm hired a consultant to conduct a Phase I Environmental Assessment. The property was determined to be “clean.” However, when excavation for the mall began, 100 drums of buried pesticides and herbicides were unearthed. The chemicals contaminated the soil and had to be removed at the firm’s expense. Remediation and drum disposal costs exceeded $750,000
6. An environmental consultant performed a phase I site assessment at a site that had been previously used for industrial purposes. The consultant submitted a report saying that negligible contamination had been found. The property was subsequently sold. During excavation an unregistered underground storage tank was discovered on the site that had been leaking. The property developer sued the consultant for $1.2 million for remediation expenses, lost profits, and diminution in value.
7. An excavation/grading contractor unknowingly spread petroleum-contaminated soil across a project site during fill operations. The contractor and property owner were named in a lawsuit for exacerbating the extent of contamination. After lengthy deliberations, the contractor and property owner were eventually removed from the lawsuit, however, they had invested $250,000 in defense.
8. An excavation contractor was subject to cleanup costs and business interruption expenses in excess of $500,000 when they ruptured and unmarked petroleum pipeline. The contractor was forced out of business, so the property owner had to pay the bill.
9. While clearing a construction site for a new shopping mall, the building contractor followed routine procedure by hauling construction debris to a local landfill. Later, when neighbors close to the landfill complained about a strange odor, it was discovered that the debris contained hazardous materials. The municipality sued the developer for clean-up costs, which the court awarded in the amount of $1.2 million.
10. While excavating for a foundation, an unknown underground storage tank containing oil was ruptured. Hundreds of gallons poured out before the rupture was closed. The entire street and neighborhood lots were covered. Settlement costs paid by the developer to cover third-party claims for bodily injury, property damage and clean-up totaled $5 million.
11. A real estate developer completed a subdivision. Shortly after completion, small sinkholes began to appear in the development, soon giving up all kinds of debris. Residents feared the debris could extend underneath some of the homes. Homeowners filed a lawsuit against the contractor/developer. Because the contractor could not identify the owner of the debris, they were forced to clean it up at a cost exceeding $1 million.
12. A HVAC contractor was hired to upgrade an office buildings heating system. While working in the building, the contractor failed to vent the system properly, causing a release of carbon monoxide. Building occupants complaining of headaches and nausea were rushed to the local hospital. As a result, several bodily injury suits were filed against the building owner in excess of $1,000,000.
13. The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank was cracked. A release from the tank spilled 8,000 gallons into the containment. The diesel seeped into the underlying soils and required costly excavation and removal. The total cost for investigation, removal and disposal exceeded $320,000.
14. A real estate owner hired an electrical contractor to upgrade a buildings electrical system. During trenching operations, a backhoe hit a natural gas pipeline causing an explosion. Third parties filed bodily injury claims against the contractor, as well as the property owner whose building was destroyed in the explosion. Claims exceeded $2.5 million.
15. A dry cleaner leased commercial space from a property owner. PCE a dry cleaning chemical was detected in soil and groundwater. The dry cleaner was forced out of business and the property owner paid $940,000 for investigation, remediation, defense and third party bodily injury and property damage claims.
16. A commercial real estate owner was subject to defense costs exceeding $25,000, in addition to property damage and bodily injury claims exceeding $400,000 from a neighboring residential community. During sewage installation, a subcontractor improperly tied in piping. This caused raw sewage to migrate into the underlying groundwater and contaminate residential wells.
17. New construction commenced on a previously undeveloped parcel of land. During excavation and dewatering activities, contaminated groundwater was discovered. The developer was required by State regulatory authorities to collect, test and treat groundwater pumped out during the excavation process. Contaminated soils were also discovered at the site. Construction delays and additional expenses totaling over $1,000,000 were incurred by the developer. It was eventually determined that the contamination had migrated from a nearby manufacturing facility that had gone into bankruptcy several years prior to the development project.
18. A small power coating company which leased space in an industrial unit from a large property owner went into liquidation. Contractors employed to refurbish the unit discovered large, poorly maintained process tanks leaking chlorinated solvents. Furthermore, chemicals escaped through cracks in the concrete floor, causing extensive soil and groundwater contamination to the surrounding property. As a result of the former tenant going into liquidation, the property owner became liable for the resulting environmental exposures. Significant expense was incurred to remove the source area, impacted soils and to install a groundwater treatment system.
Benefits of Environmental Liability Insurance

Most real estate developers/owners lack the financial strength to self-insure their potential environmental liabilities. Under CERCLA, the government offers real estate buyers the innocent landowner defense if they perform environmental due diligence (All Appropriate Inquiry (AAI), Phase I or II site assessments, Baseline Environmental Assessments (BEA)….). As we have learned, these reports are not perfect and unexpected environmental problems do occur.

While the innocent landowner defense protects real estate developers/owners from the government, it does not protect you from third parties such as neighbors, whose property is being contaminated by pollutants emanating for your property.

Most real estate developers/owners further address this issue by transferring their risk via legal environmental indemnifications to the property seller. What value is a legal environmental indemnification if you discover an environmental problem and make a claim only to find out the seller who signed the indemnification has passed away and the estate dissolved? What if the seller moves out of the country? Gets a divorce? Are monies set aside to address environmental issues or is all you have a signature?

Another exposure that must be addressed is “who are you doing business with?” As the real estate owner/developer you can do everything possible to minimize or eliminate your environmental exposures but those you do business with can draw you into a liability situation, i.e. contractors, tenants….

Three Overlooked Benefits of environmental liability insurance
1. Defense Costs: Environmental liabilities are relatively new and very litigious. Even if you do nothing wrong you can still get named in a suit and have to expense defense costs i.e. legal fees, environmental investigations
2. Claim Management: All policies come with specialists to assist you in handling a claim. Who oversees communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages….?
3. Third Party Liability: The majority of the time the cost to clean up the environmental problem/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption. You need to look at your client’s and neighbors that can be impacted if you or a sub-contractor/vendor create an environmental loss.
Environmental Liability Insurance Coverages

Environmental Impairment Liability (EIL)

EIL is for real estate owners & developers susceptible to economic loss caused by pollution that actually or allegedly originated from their properties. Sometimes referred to as Pollution Legal Liability (PLL), this coverage is for those who own, rent, lease, operate, or have any other insurable interest in real property and/or the operations.

Coverage can be written in a variety of ways to address new conditions that may occur and/or unknown preexisting environmental conditions. Coverage can include third party bodily injury and property damage, along with business interruption, on and off-site clean-up, legal defense, Non-Owned Disposal Site Liability, Transportation Pollution Liability, and more. EIL can be offered on multiyear terms, which typically provides annual savings over the term of the policy. Most EIL policies cover above ground storage tanks up to a certain size. You can also cover multiple locations on a single EIL policy.

Contractors Pollution Liability (CPL)

Real estate owners & developers have potential indirect environmental exposures from the service vendors & contractors they hire to perform work on their behalf. CPL insurance protects real estate owners / developers should their vendors cause or exacerbate an environmental condition.

Property Transfer Coverage

When buying or selling property there can be unknown preexisting environmental conditions. Since environmental due diligence (All Appropriate Inquiry (AAI), a Phase I or Phase II survey, Baseline Environmental Assessment (BEA)….), cannot guarantee uncovering all potential environmental liabilities, insurance companies have created property transfer insurance. This coverage protects the new owner or any party with an insurable interest, against unknown environmental conditions that may be discovered during the policy period, that were not caused by the new owner.

This coverage not only helps to keep the property at its maximum value, it will assist the purchaser in being able to secure the necessary financing to complete their transaction. Real estate owners and developers who use this product as part of their risk transfer strategy often find they can negotiate with the seller to share the cost and negotiate a better mortgage rate than if they did not have property transfer coverage. You can cover multiple locations on a single policy.

Transportation Pollution Liability (TPL)

Generally, Commercial Auto policies will exclude pollution losses arising from spills or other releases of their cargo. Broadened Transportation Pollution Liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and overturn of transported cargo.
May 16, 2022