Tag: transportation

  • Trucking 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. 

    Many trucking companies assume that claims arising from their operations are covered by their general liability policy or commercial auto policy. However, claims resulting from a “pollution incident” are typically excluded from general liability and commercial auto policies (except for fluids necessary to operate a vehicle). Policies that do provide pollution coverage, typically do so on a limited basis and with inadequate limits, which leaves trucking companies exposed to potentially uncovered claims. What pollutants are impacting your business?

    Environmental Exposures Impacting Trucking Companies 

    May include, but are not limited to:  Leaking fuel and waste oil storage tanks;  PFAS Chemicals; Storm water runoff;  Vapor intrusion;  Loading and unloading of cargo;  Parking equipment over unsealed surfaces allowing contaminants such as oil, fuel, anti-freeze, hydraulic fluids, asbestos… to pollute the ground & ground water;  Pollution liabilities that occur while transporting cargo;  Air Emissions from idling equipment;  Pollution cleanup and liabilities that occur after a fire;  Parts cleaning solvents;  Accumulated old batteries which contain leached acidic liquids;  Accumulated old tires and equipment;  Unsealed truck ramps;  Warehousing environmentally sensitive cargo;  Contaminants flowing from service bays into the sanitary sewers, ground, neighboring properties;  Paint residues from the body shop;  Wash waters from truck wash;  Inadequate or no auditing of hazardous and non-hazardous waste handlers, transporter and disposal companies;  Poor information on the possible adverse reactions and interactions of chemical compounds that accidentally commingle during a fire…. 

    Environmental Claims Scenarios

    1. A carrier had wash water and other cleaning solvents from their wash bay released into the soil and ground water after a pipe broke.  The break was not detected for several months.  Cost to remediate the soil and ground water was in excess of $175,000.
    2. A waste hauler was hired to transport its used motor oil. The waste hauler got into an accident which caused the contents of the tanker to be released on the ground.  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.
    3. A carrier performed loading and unloading of equipment over unsealed truck ramps.  Over a period of several years, ground water became contaminated from pollutants that were released from idling trucks and storm water runoff.  Since the ground water was the only source of drinking water for surrounding residents and the state environmental regulatory agency designated the transportation company as the responsible party.  The carrier paid $1,400,000 in cleanup costs and supply suitable drinking water until the local municipality could extend water services out to the surrounding residents.  
    4. A delivery truck got into an accident and 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.
    5. The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank was cracked. A release from the tank spilled 2,000 gallons into the containment. The diesel seeped into the underlying soils.  Total cost for investigation, removal and disposal exceeded $200,000. 
    6. While transferring hazardous materials from one truck to another, a forklift operator cut a corner too tight causing the load to shift and spill.  Cost to clean up exceeded $85,000. 
    7. A milk delivery truck got into an accident, causing thousands of gallons of milk to escape from the tank and flow into a nearby stream. The milk depleted oxygen in the area of the stream, causing a notable fish kill.  Total cost of remediation and natural resource damages cost the trucking company over $75,000. 

    Benefits of Environmental Liability Insurance 

    Unlike most liability exposures impacting trucking companies, pollution losses are not a frequency risk, but rather a severity risk. Since every trucking company 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.

    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 & very litigious.  Even if you do nothing wrong you can still get named in a suit and must expense defense costs (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 for Trucking Companies 

    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 overturn of transported cargo.  Make sure you do not confuse the MCS-90 endorsement as being TPL coverage, it’s 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 transportation companies 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 multiyear terms.  Most EIL policies cover above ground storage tanks.

    Contractors Pollution Liability 

    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 ….  

    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.  

    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. 

    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.      

  • Port Authorities

    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 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 most contractors exposed to potentially uncovered claims. What pollutants are impacting your business?

    Environmental Exposures Impacting Port Authorities 

    Include, but are not limited to:  Spills/releases during loading/unloading process;  Pollutants being shipped through the port;  Illegal / midnight dumping of pollutants, fuels, waste from tenants, ships, rail road, over the road transporters, aviation operations….;  Dust & vehicle emissions;  Spills from fuels and hazardous materials stored in above ground or underground storage tanks;  Pollution from neighboring properties migrating onto Ports (Vapor Intrusion);  Tennant operations causing a pollution exposure;  Storm water runoff;  Loading and unloading of pollutants over unsealed areas;  Natural resource damages;  Acid wash for boats; Leaks from elevator hydraulic fluid storage tanks; Equipment maintenance services;  Corroded wastewater and storm water sewers;  Sick building syndrome;  Impacting underground utilities on Port property;  No auditing of waste handling and disposal companies;  Tenants using or storing environmentally sensitive materials, chemicals, waste….;  Obsolete and remote equipment storage (bone) yards where contaminants percolate into the soil/groundwater;  Releases from refrigeration systems;  Wastewater treatment plants/ lift stations/ pumping stations;  Vandalism;  Mold; Asbestos;  Lead;  Past/present use of septic systems;  Adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;  Janitorial cleaning compounds;  No emergency and spill control plans;  nuisance odors;  Storage and use of pesticides and herbicides;  Transfer and recycling facilities;  Painting and sanding; De-icing operations;  Brownfield’s….  Some Port’s also have golf courses, airports…. that create a variety of environmental exposures.

    Environmental Claim Examples

    1. A chemical storage area sparked a fire that forced the evacuation of neighboring businesses.  Businesses and residents within a two mile radius had to evacuate because of fumes from the chemical fire.  Local residents from miles away could hear the ‘popping sound’ of the 55-gallon chemical drums as they exploded. The hazardous nature of the chemicals, and the fumes created by the fire, necessitated the evacuation of more than 20 businesses.  Businesses remained barred from their facilities for several days while the fire was extinguished and chemicals were cleaned-up.  The Port was sued by several business and third parties for business interruption as well as property damage, clean up costs and third-party bodily injury.  Costs to settle the claims exceeded $30,000,000.
    2. A new building was built on the site of a former equipment storage area.  During excavation, petroleum hydrocarbon contamination was discovered.  Cleanup costs exceeded $400,000.
    3. A Port owned several parcels of vacant land.  When the Port visited the site to begin construction of a new building they discovered that several piles of unidentified waste had been illegally dumped on the property. The Port had the piles tested and test results showed the piles contained hazardous waste.  Cost for the Port to dispose of the waste exceeded $650,000.
    4. A Port acquired property previously used for manufacturing.  The port planed to expand their warehousing operations.  When excavation began an abandoned on site lagoon waste treatment lagoon was discovered.  The soil and had to be removed at the Ports expense.  Remediation and disposal costs exceeded $750,000.
    5. An excavation/grading contractor unknowingly spread petroleum-contaminated soil across a project site during fill operations.  The contractor and Port were named in a lawsuit for exacerbating the extent of contamination.  After lengthy deliberations, the contractor and Port were eventually removed from the lawsuit, however, they had invested $150,000 in defense.
    6. 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 a Port had to pay the bill.
    7. 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.
    8. 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.
    9. At a Ports wastewater treatment plant pumping station, a faulty valve malfunctioned.  As a result, a ruptured pipe released 2.8 million gallons of raw sewage into a local river.  The river was used by local fisherman, recreational boaters and marinas.  Numerous boats were damaged by the sewage and marinas were forced to close temporarily while cleanup of the raw sewage took place.  The total cost of property damage and loss of income claims totaled $400,000.
    10. A Port tenant stored hazardous waste in an uncovered dumpster over an unsealed area.  Whenever it rained storm water would take some of the waste and deposit it across the land.  When the Port began building a new structure high levels of the hazardous waste was discovered in the soil.  Costs for the Port to remediate the site exceeded $450,000.
    11. An asphalt paving contractor paved a parking lot for a new commercial structure.  At the end of the day, the tack coat was sprayed onto the sub-base prior to paving. During the evening, a major thunderstorm caused the tack coat to wash off and flow into a nearby stream. The contractor was responsible for cleanup costs and natural resource damages which exceeded $200,000.  The damages caused for the contractors bankruptcy thus leaving the Port as the property owner the responsible party to pay for the damages.
    12. After performing routine engine maintenance on a tug boat used to move ships for a port, the boat mechanic accidentally attached the automatic bilge pump to the fuel line.  By the time the problem was detected more than 500 gallons of diesel fuel had been pumped into the bay.  Cost to the Port for clean up and third party property damage claims exceeded $100,000.

    ENVIRONMENTAL LIABILITY INSURANCE BENEFITS

    The majority of Port Authorities lack the financial strength to self insure their environmental liabilities.  Consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy.

    The Three Main Benefits environmental liability insurance offers:  

    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 RISK TRANSFER PRODUCTS

    ENVIRONMENTAL IMPAIRMENT LIABILITY (EIL)

    EIL is for Ports 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.  Sewer lines and pump/lift stations can be covered by EIL.  Most EIL policies cover above ground storage tanks and some can include underground storage tanks. EIL coverage can also be used to protect for environmental losses from tenants.

    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

    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.  Note:  An MCS-90 endorsement is not pollution coverage. Coverage can also be acquired to protect against losses from water craft, rail or aircraft.

    UNDERGROUND AND ABOVE GROUND 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 system. 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:  Ports have potential indirect environmental exposures from the vendors you hire to perform services.  Should your vendors cause an environmental loss 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.

    CONTRACTORS POLLUTION LIABILITY

    This coverage can be purchased to meet two specific exposures. First, contractors that perform remedial activities (asbestos, lead, mold, soil or ground water remediation) there is the standard contractor’s pollution liability (CPL) insurance coverage. This protects the insured for pollution conditions they may cause or exacerbate an existing situation while performing remedial services. This is for covered operations performed by or on behalf of the insured.  The loss must occur away from any premises the insured owns, rents, leases or occupies, in other words while they are performing remedial services at an educational institution.

    Secondly, standard contractors (i.e. general contractors, HVAC, plumbing, electrical, mechanical, janitorial, demolition, drilling, excavation, street and paving contractors, rigging, utility, millwrights, artisan, etc.), in performing their services may cause an environmental liability that is generally excluded from their general liability coverage. For these contractors there is contingent contractor’s pollution liability (CCPL) coverage. Basically they are afforded the same coverage as remedial contractors but the cost to purchase this insurance is substantially less.

    PROFESSIONAL LIABILITY (E&O)

    Should a environmental engineer/consultant or analytical laboratory make an error or an omission in performing professional services for you they will need a E&O policy including pollution for there to be coverage.  Some professional services could include Phase I or Phase II site assessments, All Appropriate Inquiry (AAI), air monitoring, lead and asbestos assessments, waste characterization, remedial action plans, water testing, mold survey’s, environmental training….

  • Food Distributors

    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 commercial insureds with gaps in coverage. What pollutants are impacting your business? 

    Environmental Exposures Impacting Food Distributors 

    May include, but are not limited to;  Product recall for contamination;  Uncertainties about the historical use and conditions of property;  Spills from underground and/or aboveground storage tanks;  Pollution cleanup that results from a fire;  No secondary containment for above ground storage tanks;  Vapor intrusion;  Spills or leaks from the storage and handling (loading/unloading) of material containers such as drums, totes or bags from vehicles;  Parking equipment over unsealed surfaces allowing contaminants such as oil, fuel, anti-freeze, hydraulic fluids, asbestos… to pollute the ground;  No emergency response training for employees;  Unknown, abandoned underground storage tanks;  Pollution liabilities that occur while transporting cargo;  Accumulated old tires, batteries, equipment…;  Raw materials stored on site;  Inadequate or no auditing of hazardous and non-hazardous waste handlers, transporter and disposal companies;  Poor information on the possible adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;  Stormwater runoff;  Utilities that cross your property;  Corroded wastewater and storm water sewers;  Natural resource damages;  Asbestos or lead containing materials;  Silica;  Mold / Legionella;  Illegal dumping of waste on your property by unknown 3rd parties;  Pollutants from neighboring properties migrating onto yours and more…

    Environmental Claims Scenarios

    1. While transporting products over the road, the driver for a food distributor got into an accident and overturned. The products being hauled escaped the trailer and ended up in a nearby stream. Costs for remediation and natural resource damages exceeded $85,000. 
    2. Loading/unloading of products and material was conducted over unsealed truck ramps.  Over a period of several years, ground water became contaminated from pollutants that were released from idling trucks and storm water runoff.  Since the ground water was the only source of drinking water for surrounding residents and the state environmental regulatory agency designated the distributor as the responsible party, the distributor had to pay over $1,400,000 in cleanup costs and supply suitable drinking water until the local municipality could extend water services out to the surrounding residents.  
    3. A facility began expansion of a production line. During excavation, oily soils with a petroleum odor were discovered. Further investigation uncovered an old, undocumented sludge-drying pit. The property owner had to remove and remediate the soils at his expense. Cleanup costs exceeded $400,000. 
    4. The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank used for a trucking fleet 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.
    5. During the night, a distribution facility caught on fire. As the fire department put out the fire, their high-pressure hoses forced melted plastics, metals, insulation, roofing, drywall, laminate, stored products, 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 distributor was responsible for all clean-up costs, 3rd party property damage, and 3rd party business interruption, in addition to natural resource damages, which totaled over $2,000,000.  NOTE: fire departments are immune to pollution claims arising from their work while putting out fires.  
    6. A 1,000-gallon diesel aboveground storage tank used for the backup power generator for a distribution facility 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 $90,000.  
    7. A delivery truck got into an accident and 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.

    Benefits of Environmental Liability Insurance

    Because pollution losses are a severity risk, versus a frequency risk, most food distributors lack the financial strength to self-insure their environmental liabilities.  Since every food distributor 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.

    Furthermore, most commercial insureds only consider the cleanup costs associated with environmental claims. However, the cost of cleanup in often far less than other costs that can be associated with a pollution loss. 

    Three 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 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 Products

    Environmental Impairment Liability (EIL) 

    EIL is for food distributors susceptible to economic loss caused by pollution that actually or allegedly originated from their properties.  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/or 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.  You can cover multiple locations on a single policy.

    Transportation Pollution Liability 

    Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or 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.  You need to strategize on your exposure to transportation.  How are goods received?  FOB point of Shipment or FOB point of delivery?  Do not be confused by thinking the MCS-90 endorsement is auto pollution liability coverage.  

    Underground Storage Tanks

    Storage tank financial responsibility requirements ensure that owners/operators of underground storage tank systems can financially handle a release from the tank system. 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.  

    Real estate developers/owners with a financial responsibility strategy dependent upon state UST funds need to regularly confirm fund solvency and length of time it will take to get reimbursed.  If part of your business strategy depends upon the state fund, this means just that, you are putting the future success of your business in the hands of the state.  You need to strategize on “just how strong is your business” if you are putting its future in the hands of your state government. 

    Property Transfer Coverage

    Note:  This coverage is designed for buyers or sellers of real properties.

    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.  You can cover multiple locations on a single policy.

  • How are your client’s buying their raw materials?

    Environmental Strategist between the lines: The majority of transportation pollution losses occur during the loading and unloading process, see the link below.

    It’s also important to understand how your clients are buying their raw materials, FOB (freight on Board) point of shipment or FOB point of delivery? The majority of businesses buy their raw materials FOB point of shipment. Why? Because it’s cheaper. FOB point of shipment means the purchaser is responsible for the cargo once it leaves the loading dock.

    This leads to asking the purchaser what their financial assurance plan is should there be an accident in route and their cargo released to the environment?

    Transportation pollution liability insurance protects the insured for pollution losses of their transported cargo during the loading, unloading and transportation of their cargo being shipped over road, rail, air or water.

    https://dailygazette.com/article/2018/05/03/lawsuit-filed-in-asphalt-explosion-death

  • How are your client’s buying their raw materials?

    Environmental Strategist between the lines: The majority of transportation pollution losses occur during the loading and unloading process, see the link below.

    It’s also important to understand how your clients are buying their raw materials, FOB (freight on Board) point of shipment or FOB point of delivery? The majority of businesses buy their raw materials FOB point of shipment. Why? Because it’s cheaper. FOB point of shipment means the purchaser is responsible for the cargo once it leaves the loading dock.

    This leads to asking the purchaser what their financial assurance plan is should there be an accident in route and their cargo released to the environment?

    Transportation pollution liability insurance protects the insured for pollution losses of their transported cargo during the loading, unloading and transportation of their cargo being shipped over road, rail, air or water.

    https://dailygazette.com/article/2018/05/03/lawsuit-filed-in-asphalt-explosion-death

  • Gasoline gets into southeast Kentucky cave system

    environmental Strategist™, between the lines:  The majority of the time when you ask a business how they purchase their raw materials they will tell you they buy them FOB (Freight On board) point of shipment.  Why, because it’s cheaper.  The story below is a simple example of the dangers a business can experience buying their raw materials FOB point of shipment.

    Before you say it, let me, “This is a loss that could never Happen.”  Environmental liabilities for businesses generally are not a frequency problem but a severity problem.

    Gasoline gets into southeast Kentucky cave system – February 3, 2014 

    Kentucky Department of Environmental Protection crews are working with cavers after a fuel spill late last week.

    Early on the morning of January 30th 2014, a gasoline tanker truck left the pavement of US Highway 27 and rolled down an embankment just south of Burnside in southern Pulaski County.

    Due to a considerable delay between the time of the accident and when it was finally reported, most if not all 8,200 gallons of gasoline had already leaked out of the tanker by the time emergency personnel arrived on the scene.

    The fuel had flowed overland to a gully and several hundred feet over frozen ground to a swallow hole, believed to be connected to the Sloan’s Valley Cave system.

    Efforts to clean up the fuel remaining on the surface are underway, but the majority is thought to now be in the cave and groundwater.

    Although six cave entrances were checked and no fumes were detected, dangerous conditions inside the cave could exist inside. Several sumps exist along the base level stream passage and the gasoline is expected to be trapped on top of the water for a significant period of time.

    Fuel vapors may make self-contained breathing apparatus a necessity to enter the cave and there is also the potential for an explosion.

    Signs have been posted at the entrances warning of the potential hazardous conditions.

    In the future, before caving in Sloan’s or Neely’s Creek please obtain the latest information from the Kentucky Division of Water.

    [via Jared Snyder] & Gasoline gets into southeast Kentucky cave system [courier-journal.com]

     

    eS Risk Management Strategy:  environmental Strategist™ (eS) understand that sustainability is just another word for environmental risk management.  Through environmental risk management, eS offer four simple risk management strategies a business can implement to reduce their environmental liability exposures in receiving their raw materials.

    1.  Stop buying your raw materials FOB point of shipment, purchase them FOB point of delivery.

    2.  Working with your attorney team member, have then draw up a contract that transfers the transportation liability to the transporter until your raw materials are delivered and off loaded.

    3.  Only deal with transporters that carry transportation pollution liability coverage.

    4.  Businesses can purchase an insurance policy that protects them while third parties are transporting their goods.

    Business owner, what would you like to do?

    Through environmental risk management eS offer businesses options on managing and transferring their environmental exposures to increase profits in today’s business environment.  For more go to www.estrategist.com.