{"id":2347,"date":"2017-07-12T20:13:33","date_gmt":"2017-07-12T20:13:33","guid":{"rendered":"http:\/\/estrategist.com\/members\/?p=2347"},"modified":"2022-05-16T21:14:52","modified_gmt":"2022-05-16T21:14:52","slug":"illicit-abandonment","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/illicit-abandonment\/","title":{"rendered":"Illicit Abandonment"},"content":{"rendered":"

environmental Strategist\u00ae, between the lines:<\/strong>\u00a0 Illicit Abandonment is an environmental exposure, which most commercial real estate lessors don\u2019t think about.<\/p>\n

Let me digress, back in 2008 when the economy tanked, we received a call from an insurance agent who explained his client had a leased facility and the tenants went out of business.\u00a0 When the client went to inspect their property, they found raw materials stored in 55 gallon drums, totes and other storage containers, which were left behind by the bankrupt tenant.\u00a0 None of the containers were leaking or causing an environmental liability, but to rent the building out the owner had to get rid of the raw materials and it cost more than $80,000.\u00a0 That is a simple example of illicit abandonment and this exposure can be covered with pollution liability insurance.<\/p>\n

The article below talks about refurbishing of containers, such as 55 gallon drums, and the environmental exposures it creates for workers and neighbors to business those refurbish containers.\u00a0 The article also talks about how most containers they receive have some residual product left in the containers.<\/p>\n

When you see a facility like the one in this picture, which stores old containers outside over an unsealed surface, over time residuals will leak out and contaminate the ground and ground water.\u00a0 Under federal law the owner of the property is ultimately responsible for the environmental condition of their property.\u00a0 What if the contamination migrates onto a neighboring property?<\/p>\n

What the article does not talk about is the huge environmental exposure storage and use of 55 gallon drums, totes, buckets\u2026 creates for businesses that use them.\u00a0 How does the business buy the raw materials; FOB point of shipment, or FOB point of delivery?\u00a0 Do they store them in a secure area with secondary containment?<\/p>\n

As your client\u2019s professional risk manager, do you go out and inspect their rental properties to make sure a tenant is not creating an environmental exposure for your insured?\u00a0 What is the tenant\u2019s strategy to meet the environmental indemnification contained in the lease agreement they signed?<\/p>\n

Is the tenant\u2019s financial assurance strategy to go out of business if they create an environmental liability, and leave the property owner with an illicit abandonment exposure?<\/p>\n

Working with Environmental Risk Managers<\/em> we can coach you and your client\u2019s on better managing and transferring their environmental exposures.<\/p>\n

ERMI Sales Strategy:\u00a0 Every time you go out and inspect a client\u2019s tenant, it creates a potential new sales opportunity for you with the tenant.\u00a0 While serving your client\u2019s better, you are also creating a great opportunity to increase your sales.\u00a0 Win \/Win!!!!!<\/p>\n

https:\/\/projects.jsonline.com\/news\/2017\/2\/15\/chemicals-left-in-barrels-leave-many-at-risk.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

environmental Strategist\u00ae, between the lines:\u00a0 Illicit Abandonment is an environmental exposure, which most commercial real estate lessors don\u2019t think about. Let me digress, back in 2008 when the economy tanked, we received a call from an insurance agent who explained his client had a leased facility and the tenants went out of business.\u00a0 When the… Continue reading Illicit Abandonment<\/span><\/a><\/p>\n","protected":false},"author":223,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[3,4,5,7],"tags":[284,282,285,259,281,209,179,283],"class_list":["post-2347","post","type-post","status-publish","format-standard","hentry","category-resources","category-featured","category-risk","category-webinars","tag-containers","tag-drums","tag-exposure","tag-exposures","tag-illicit","tag-illicit-abandonment","tag-real-estate","tag-tenant","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/users\/223"}],"replies":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/comments?post=2347"}],"version-history":[{"count":3,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2347\/revisions"}],"predecessor-version":[{"id":2547,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2347\/revisions\/2547"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}