{"id":2664,"date":"2022-05-09T16:57:30","date_gmt":"2022-05-09T16:57:30","guid":{"rendered":"http:\/\/estrategist.com\/website\/members\/?p=2664"},"modified":"2022-05-09T16:57:30","modified_gmt":"2022-05-09T16:57:30","slug":"pollution-exposures-impacting-contractor-operating-facilities","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/pollution-exposures-impacting-contractor-operating-facilities\/","title":{"rendered":"Pollution Exposures Impacting Contractor Operating Facilities"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">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?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on the activities taking place at your operating facility(s), environmental exposures impacting your location(s) can include, but are not limited to;\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storage of bulk materials such as adhesives, stains, fuel, etc. which can be hazardous in the event of severe weather, fire, or faulty work.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vapor intrusion from 3<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\"> party properties migrating onto yours<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storm water run-off from machinery and\/or materials stored outdoors on the property, &amp; employee parking lots.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Underground ground &amp; above ground storage tanks, totes, barrels, drums, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unknown contamination from historical property uses\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storage of waste oils, anti-freeze, batteries, hydraulic fluid, PFAS chemicals, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Illegal dumping of waste by 3<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\"> parties (midnight dumping)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vandalism creating a pollution liability\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pollutants from neighboring properties migrating onto your property\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mold, asbestos, silica, lead, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Impacting underground utilities\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nuisance odors from batch plants, idling equipment, etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loading and unloading products\/materials over unsealed or cracked surfaces\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Devaluation of property value due to a buyer\u2019s uncertainty concerning possible present contamination<\/span><\/li>\n<\/ul>\n<p><strong>Environmental Loss Examples\u00a0<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.\u00a0 Area businesses and residents were evacuated.\u00a0 Claims for bodily injury, cleanup, property damage\u2026 exceeded $400,000.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During the night an unknown party illegally placed drums of hazardous liquid into a dumpster at a drilling contractor\u2019s equipment storage facility.\u00a0 The containers were not leaking, but the cost to properly dispose of the hazardous liquid cost the drilling contractor roughly $50,000.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.\u00a0 Total cost for investigation, removal, and disposal exceeded $320,000.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.\u00a0 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.<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">Insurance Product Solution<\/span><\/h3>\n<p><b>Environmental Impairment Liability (EIL)\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><b>EIL Policies Can Provide Coverage for\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New pollution conditions and\/or unknown preexisting conditions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Third party bodily injury &amp; property damage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">on and off site clean-up costs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">3<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\"> and\/or 1<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> party business interruption<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal defense expenses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Above ground storage tanks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Non-Owned Disposal Site Liability\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transportation Pollution Liability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Can be included with Contractors Pollution Liability on a package policy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Blanket coverage for insureds with multiple locations<\/span><\/li>\n<\/ul>\n<p><b>Policy Terms, Limits, &amp; Premiums<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimum premiums start at roughly $2,000 for $1M\/$1M limits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">$5,000 minimum deductible\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Up to $25M in limits available, higher with towers\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Multi-year terms available up to 10-years\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<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?\u00a0<\/p>\n","protected":false},"author":1,"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":[5],"tags":[92],"class_list":["post-2664","post","type-post","status-publish","format-standard","hentry","category-risk","tag-contractors","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2664","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/comments?post=2664"}],"version-history":[{"count":2,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2664\/revisions"}],"predecessor-version":[{"id":2666,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2664\/revisions\/2666"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}