Pipes and Pressure

ENVIRONMENTAL LIABILITY

SPECIALTY LINES / ENVIRONMENTAL LIABILITY

Why is this important and what does it cover?

You may recall, during the mid-1980s, a news frenzy covering underground storage tanks rusting and releasing harmful fuel oils. This led to the development of new environmental regulations and the reduction of these occurrences. Understanding your organization's unique environmental exposures is fundamental to reducing financial risk. It's also important not to underestimate the power of consumer awareness and how that can increase the likelihood of being named in a formal allegation or a lawsuit claiming bodily injury caused by harmful substances.

 

99.9% of General Liability policies do not provide coverage for third-party liability arising from or caused by: fumes, vapors, smoke, mold, microbial matter, fungi, bacteria, chlorine, carbon monoxide, etc.

Claims Example:

An apartment owner was sued by their tenant who allegedly experienced bodily injury and mental anguish caused by high levels of airborne mold. They sued the landlord for medical bills, pain and suffering, and relocation costs totaling $75,000. Since the apartment owner did not have an Environmental Liability policy, the lawsuit did not trigger coverage under his General Liability policy. Overall, the cost to hire a professional inspector to test the units air quality and legal counsel to defend him in court totaled over $50,000.

Coverage Features:

  • 1st Party Property Damage

  • 3rd Party Liability

  • Includes Mold

  • Broad definition of Pollutants

  • Above Ground/Below Ground Storage Tanks

  • In-transit Coverage

  • Diminished Value Available

  • Retroactively Available

  • Crisis Management Expense