By Ken Snyder, AVP Underwriting Great American
Health Care is certainly a hot topic these days. While the debate over how to best address health care unfolds what is certain is that there continues to be significant growth in the industry with new hospitals being built, existing hospitals being expanded or upgraded, and an increase in the demand for outpatient clinics and ancillary facilities. While there is no debating the importance of these facilities in our communities, these sites utilize a variety of hazardous materials and generate large quantities of wastes which if accidentally introduced into the environment can have serious consequences.
Chemicals used by medical facilities fall into several categories including disinfectants, medicines, housekeeping/maintenance chemicals, pesticides, sterilants, and laboratory reagents. These chemicals can be found in x-ray departments, medical administering areas, sterilization areas, maintenance departments and laboratories. Proper storage, handling, and disposal practices are critical to avoid introducing these toxic materials into the environment. Medical facilities are heavily regulated, however accidents do happen. If improper handling procedures result in a release to the environment, the facility owners and operators may be held liable for clean-up costs and potential third party bodily injury and property damage.
Medical facilities generate large amounts of diverse waste that require proper disposal. A portion of the waste is hazardous and must therefore be packaged, transferred and disposed of properly to protect the people handling the material and the environment. Liquid biological wastes and liquid chemical wastes must be adequately separated from normal trash at the point of origin and are ultimately disposed of through on-site incineration, on-site auto clave, or processed at non-owned certified hazardous waste disposal sites. All three operations are a source of potential contamination and the medical facility, as the generator may be held liable for contamination associated with these disposal practices.
In addition to chemicals and hazardous wastes, large quantities of petroleum products including gasoline, diesel fuel and fuel oil may be maintained on-site in underground or above ground storage tanks. These tanks may eventually leak resulting in the contamination of surrounding soils and groundwater which is very expensive to rectify.
Indoor air quality also represents an area of significant concern for medical facilities since many patients have depressed immune systems and may be more susceptible to pollutants such as mold spores or legionella bacteria. The medical facility may be held liable for third party bodily injury suits from patients whose conditions have inadvertently worsened due to contact from these pollutants.
With the development of new medical facilities or the expansion of existing medical facilities additional environmental exposures may come into play. Unknown pollutants may be discovered in the course of development especially if the project is located on a site with prior commercial or industrial uses or a Brownfield property. Demolition activities may contaminate adjacent medical suites with dust or other pollutants leading to clean-up costs and expenses for business interruption.
Environmental exposures at medical facilities are not just limited to the owners and operators of the facility but also apply to any contractors working at such sites. From HVAC contractors inadvertently disturbing asbestos, plumbers causing a mold or legionella issue or a general contractor being sued for contaminating surgical suites with dust from remodeling activities – all face heightened environmental exposures around such sensitive sites and their at risk third party population.
Environmental Insurance Company’s environmental liability products offer protection for Medical Facilities for exposures associated with the previously discussed pollutants.
- Premises Environmental Liability Policy
- Indoor Air Quality and Mold Liability Policy
- Contracting Services Environmental Liability Policy
- Professional and Contracting Services Environmental Liability Policy
- Storage tank policy
- Auto pollution liability
- Property transfer coverage