{"id":2426,"date":"2018-05-02T16:15:08","date_gmt":"2018-05-02T16:15:08","guid":{"rendered":"http:\/\/estrategist.com\/members\/?p=2426"},"modified":"2018-05-02T16:15:08","modified_gmt":"2018-05-02T16:15:08","slug":"ermi-on-contractors-operating-facilities","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/ermi-on-contractors-operating-facilities\/","title":{"rendered":"ERMI on Contractors Operating Facilities"},"content":{"rendered":"<p>Continuing with our environmental risk management series for contractors, you will find attached an environmental Risk Assessment (eRA) for pollution exposures impacting Contractors Operating Facilities.<\/p>\n<p>So often we strategize on the pollution exposures impacting contractors while operating in the field but what about their office \/ shop \/ equipment storage\u2026 operations that support their in the field work?\u00a0 The attached eRA will coach you on the exposures impacting your contracting insureds operating facilities.<\/p>\n<p>We\u2019ve developed eRA\u2019s for over 80+ classes of business to get you and your clients on the same page about the environmental exposures impacting their operations.\u00a0 We send our eRA\u2019s in a Word format, so you can cut and paste them into a marketing presentation that compliments your agencies marketing program.<\/p>\n<p>Our partner agencies find utilizing the eRA\u2019s is an excellent way to leverage their\u00a0insurance sales through educating the client about the fiscal realities of pollution protection.\u00a0 It genuinely <em>does <\/em>have a measurable impact to their bottom line and strategic financial planning.<\/p>\n<p>The eRA\u2019s come in three parts:<\/p>\n<ol>\n<li>Review of environmental exposure impacting your insured.<\/li>\n<li>Environmental loss examples<\/li>\n<li>Environmental insurance coverage\u2019s that are appropriate for the insured to consider.<\/li>\n<\/ol>\n<p>The goal is to educate your insured, so they can make the best decisions for their business. If your insured sees value and elects to further pursue environmental insurance coverage, we\u2019re here to make your job easier by utilizing our network and expertise to market your client\u2019s submission and supply you with the best coverage options.<\/p>\n<p>I want to share with you an email I received from one of our retail agency partners regarding his experience using ERMI eRA\u2019s.<\/p>\n<p>Email from agent:\u00a0 All I had to do at the P&amp;C pre-renewal meeting was hand him over your HVAC claims example piece for consideration.\u00a0 I had his app in my email inbox before I returned to the office.<\/p>\n<p>ERMI, so much more than a wholesaler, we are your TEAM member for all things environmental.<\/p>\n<h3>Contractors Operating Facilities eRA<\/h3>\n<p>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?<\/p>\n<p>Many contractors have physical locations that support their work in the field, which can include offices, storage buildings, equipment\/vehicle maintenance facilities, fuel storage, outdoor storage yards, raw materials, etc.<\/p>\n<p>Depending on the activities taking place at your operating facility(s), environmental exposures impacting your location(s) can include, but are not limited to;<\/p>\n<ul>\n<li>Storage of bulk materials such as adhesives, stains, fuel, etc. which can be hazardous in the event of severe weather, fire, or faulty work.<\/li>\n<li>Storm water run-off from machinery and\/or materials stored outdoors on the property, &amp; employee parking lots.<\/li>\n<li>Underground ground &amp; above ground storage tanks, totes, barrels, drums, etc.<\/li>\n<li>Unknown contamination from historical property uses<\/li>\n<li>Storage of waste oils, anti-freeze, batteries, hydraulic fluid, etc.<\/li>\n<li>Illegal dumping of waste by 3<sup>rd<\/sup> parties (midnight dumping)<\/li>\n<li>Vandalism creating a pollution liability<\/li>\n<li>Pollutants from neighboring properties migrating onto your property<\/li>\n<li>Mold, asbestos, silica, lead, etc.<\/li>\n<li>Impacting underground utilities<\/li>\n<li>Nuisance odors from batch plants, idling equipment, etc.<\/li>\n<li>Loading and unloading products\/materials over unsealed or cracked surfaces<\/li>\n<li>Devaluation of property value due to a buyer\u2019s uncertainty concerning possible present contamination<\/li>\n<\/ul>\n<p>Environmental Loss Examples<\/p>\n<ol>\n<li>While moving a large piece of equipment at a contractor\u2019s storage facility, the forklift operator hit an aboveground storage tank releasing 10,000 gallons onto the ground that migrated onto neighboring properties before emergency response crews could respond. Area businesses and residents were evacuated.\u00a0 Claims for bodily injury, cleanup, property damage\u2026 exceeded $400,000.<\/li>\n<li>During the night an unknown party illegally placed drums of hazardous liquid into a dumpster at a drilling contractor\u2019s equipment storage facility. The containers were not leaking, but the cost to properly dispose of the hazardous liquid cost the drilling contractor roughly $50,000.<\/li>\n<li>A trucking contractor\u2019s vehicle wash bay experienced a release from the piping system, causing a substantial amount of cleaning solvents to enter the surrounding soil and ground water.\u00a0 Cost to remediate the cleaning solvents from the soil and ground water was in excess of $250,000.<\/li>\n<li>A construction management company was remodeling and expanding their home office. During the project, the excavation contractor hired to prepare the site for the expansion excavated through and ruptured an unmarked gas line. The excavation contractor was liable for cleanup costs and business interruption expenses, which totaled over $300,000. Due to the size of the loss, the excavation contractor was forced out of business, leaving the construction management company (property owner) to cover the costs.<\/li>\n<li>A HVAC contractor was hired to upgrade the heating system at a construction management company\u2019s office. While working in the building, the HVAC contractor failed to vent the system properly, causing a release of carbon monoxide. Employees at the office began complaining of headaches and nausea, and were rushed to the local hospital. As a result, several bodily injury suits were filed against the construction management company (property owner of the office building) in excess of $1,000,000.<\/li>\n<li>The concrete secondary containment of a 10,000-gallon aboveground diesel storage tank located at a contractor\u2019s office\/storage facility cracked. The release from the tank spilled 8,000 gallons into the containment area of the tank. Over the weekend diesel fuel seeped into the underlying soils. Total cost for investigation, removal, and disposal exceeded $320,000.<\/li>\n<li>A contractor routinely stored barrels of fuel, oil, anti-freeze, paint thinners, and other solvents at their outdoor storage yard. While loading about 1,000 pounds of potentially hazardous products onto a truck, five barrels slipped off the fork lift releasing the contents. Fortunately, the contracting company had an emergency response plan in place and their emergency response team was able to contain most of the contaminants.\u00a0 Cost of the additional cleanup was $70,000.<\/li>\n<\/ol>\n<p>Insurance Product Solution<\/p>\n<p><strong>Environmental Impairment Liability (EIL) <\/strong><\/p>\n<p>Sometimes referred to as Pollution Legal Liability, EIL is for contractors that own, rent, lease, or occupy a property, which is susceptible to economic loss caused by pollution that actually, or allegedly originated from their location, or migrates onto their location from a neighboring property.<\/p>\n<p><strong>EIL Policies Can Provide Coverage for <\/strong><\/p>\n<ul>\n<li>New pollution conditions and\/or unknown preexisting conditions<\/li>\n<li>Third party bodily injury &amp; property damage<\/li>\n<li>on and off site clean-up costs<\/li>\n<li>3<sup>rd<\/sup> and\/or 1<sup>st<\/sup> party business interruption<\/li>\n<li>Legal defense expenses<\/li>\n<li>Above ground storage tanks<\/li>\n<li>Non-Owned Disposal Site Liability<\/li>\n<li>Transportation Pollution Liability<\/li>\n<li>Can be included with Contractors Pollution Liability on a package policy<\/li>\n<li>Blanket coverage for insureds with multiple locations<\/li>\n<\/ul>\n<p><strong>Policy Terms, Limits, &amp; Premiums<\/strong><\/p>\n<ul>\n<li>Minimum premiums start at $2,000 for $1M\/$1M limits<\/li>\n<li>$5,000 minimum deductible<\/li>\n<li>Up to $25M in limits available<\/li>\n<li>Multi-year terms available up to 10-years<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Continuing with our environmental risk management series for contractors, you will find attached an environmental Risk Assessment (eRA) for pollution exposures impacting Contractors Operating Facilities. So often we strategize on the pollution exposures impacting contractors while operating in the field but what about their office \/ shop \/ equipment storage\u2026 operations that support their in&hellip; <a class=\"more-link\" href=\"https:\/\/estrategist.com\/members\/ermi-on-contractors-operating-facilities\/\">Continue reading <span class=\"screen-reader-text\">ERMI on Contractors Operating Facilities<\/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":[92,254,285,341,340,9,307],"class_list":["post-2426","post","type-post","status-publish","format-standard","hentry","category-resources","category-featured","category-risk","category-webinars","tag-contractors","tag-environmental","tag-exposure","tag-facilities","tag-operating","tag-pollution","tag-risk","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2426","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=2426"}],"version-history":[{"count":1,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2426\/revisions"}],"predecessor-version":[{"id":2427,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2426\/revisions\/2427"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}