{"id":2749,"date":"2022-05-11T22:01:12","date_gmt":"2022-05-11T22:01:12","guid":{"rendered":"http:\/\/estrategist.com\/website\/members\/?p=2749"},"modified":"2022-05-11T22:01:12","modified_gmt":"2022-05-11T22:01:12","slug":"marinas-shipyards","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/marinas-shipyards\/","title":{"rendered":"Marinas & Shipyards"},"content":{"rendered":"

What is a Pollutant?\u00a0<\/strong><\/p>\n

Any material, substance, liquid, product, etc\u2026 which is introduced into an environment for other than its intended use \/ purpose. Fresh water, cheese, and milk have all been classified as pollutants by Insurance Carriers under various circumstances.\u00a0<\/span><\/p>\n

Most commercial insureds assume that claims arising from their operations are covered by the general liability policy. However, claims resulting from a \u201cpollution incident\u201d are excluded from most general liability policies, which leaves commercial insureds with gaps in coverage. What pollutants are impacting your business?<\/span><\/p>\n

Environmental Exposures Impacting Marinas & Shipyards<\/strong><\/p>\n

May include, but are not limited to<\/b>: Chemicals used for aquatic weed control;\u00a0 Fertilizers and pesticides used for landscaping; Spills\/releases during loading\/unloading process;\u00a0 Illegal \/ midnight dumping of pollutants, fuels, waste from tenants, ships, and other 3<\/span>rd<\/span> parties, Spills of fuels and hazardous materials stored in above ground or underground storage tanks;\u00a0 Pollution from neighboring properties migrating onto Marina\/Shipyard property (Vapor Intrusion);\u00a0 Storm water runoff;\u00a0 Loading and unloading of pollutants over unsealed areas;\u00a0 Natural resource damages; Dust & vehicles emissions; Equipment maintenance services; Corroded wastewater and storm water sewers;\u00a0 Sick building syndrome;\u00a0 Impacting underground utilities on Marina or Shipyard property;\u00a0 No auditing of waste handling and disposal companies; Equipment storage (bone) yards where contaminants percolate into the soil\/groundwater;\u00a0 Releases from refrigeration systems;\u00a0 Wastewater treatment plants\/ lift stations\/ pumping stations;\u00a0 Vandalism;\u00a0 Mold; Asbestos;\u00a0 Lead;\u00a0 Past\/present use of septic systems;\u00a0 Adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;\u00a0 Janitorial cleaning compounds;\u00a0 No emergency and spill control plans;\u00a0 nuisance odors;\u00a0 Transfer and recycling facilities;\u00a0 Fumes and wastes from Fiberglass work, Painting and sanding; Brownfields\u2026.and more<\/span><\/p>\n

Environmental Claim Scenarios<\/strong><\/p>\n

    \n
  1. \u00a0A Marina\u2019s chemical storage area sparked a fire that forced the evacuation of neighboring businesses.\u00a0 Businesses and residents within a two-mile radius had to evacuate because of fumes from the chemical fire.\u00a0 Residents from miles away could hear the ‘popping sound’ of the 55-gallon chemical drums as they exploded. The hazardous nature of the chemicals, and the fumes created by the fire, necessitated the evacuation of more than 20 businesses.\u00a0 Businesses remained barred from their facilities for several days while the fire was extinguished and chemicals were cleaned-up.\u00a0 The Marina was sued by several businesses and third parties for business interruption as well as property damage, cleanup costs and third-party bodily injury.\u00a0 Costs to settle the claims exceeded $10,000,000.\u00a0\u00a0\u00a0 \u00a0<\/span><\/li>\n
  2. During the night, a fire broke out at a Marina\u2019s storage facility. As the fire department put out the fire, their high-pressure hoses forced melting plastics, metals, insulation, roofing, chemicals, oils, and other materials to commingle within the building, creating a toxic \u201csludge\u201d. Some of the toxic \u201csludge\u201d escaped the building and migrated onto to neighboring properties. The Marina was held liable for all clean-up costs, 3<\/span>rd<\/span> party property damage, 3<\/span>rd<\/span> party business interruption, and natural resource damages, which totaled over $5,000,000.\u00a0 <\/span>NOTE: fire departments are immune to pollution claims arising from their work while putting out fires. <\/span>\u00a0<\/span><\/li>\n
  3. A Marina placed a new building on the site of a former equipment storage area.\u00a0 During excavation, petroleum hydrocarbon contamination was discovered.\u00a0 Cleanup costs exceeded $400,000.\u00a0<\/span><\/li>\n
  4. The concrete secondary containment of a 10,000-gallon diesel aboveground storage tank was cracked. A release from the tank spilled 8,000 gallons into the containment. The diesel seeped into the underlying soils and required costly excavation and removal. The total cost of the claim exceeded $320,000.\u00a0\u00a0<\/span><\/li>\n
  5. At a Port\u2019s wastewater treatment plant pumping station, a faulty valve malfunctioned.\u00a0 Thus, a ruptured pipe released 2.8 million gallons of raw sewage into a local river.\u00a0 The river was used by local fisherman, recreational boaters and marinas.\u00a0 Numerous boats were damaged by the sewage and marinas were forced to close temporarily while cleanup of the raw sewage took place.\u00a0 The total cost of property damage and loss of income claims totaled $400,000.\u00a0<\/span><\/li>\n
  6. A Shipyard was sued when contamination was discovered in the drinking water at a new nearby residential development. After further investigation, it was determined that the pollutants were not used as part of the shipyard\u2019s operations, and the shipyard property was not the source of the contamination, releasing them from the lawsuit. However, they had already expensed over $75,000 in legal defense fighting the claim.\u00a0<\/span><\/li>\n
  7. After performing routine engine maintenance on a tug boat used to move ships for a shipyard, the boat mechanic accidentally attached the automatic bilge pump to the fuel line.\u00a0 By the time the problem was detected more than 500 gallons of diesel fuel had been pumped into the bay.\u00a0 Cost to the shipyard for cleanup and third party property damage claims exceeded $100,000.<\/span><\/li>\n
  8. During the night, an unknown party illegally placed drums of hazardous waste into a dumpster at a boat storage and maintenance facility. The containers were not leaking, but the cost to properly dispose of the illegally dumped waste cost the auto dealer roughly $50,000.\u00a0<\/span><\/li>\n
  9. A Marina hired a waste hauler to transport their used oils & chemicals to a 3<\/span>rd<\/span> party disposal facility. During transportation, the hauler\u2019s truck got into an accident and overturned, spilling its load.\u00a0 Under CERCLA, the marina must contribute for their apportionment of the load for cleanup cost since federal law states that you own your waste from cradle to grave.\u00a0 Cost to settle the claim for the marina was roughly $600,000.<\/span><\/li>\n<\/ol>\n

    Benefits of Environmental Liability Insurance<\/strong><\/p>\n

    Unlike most liability exposures impacting Marinas and Shipyards, pollution losses are not a frequency risk, but rather a severity risk. Because all Marinas and Shipyards have notable environmental exposures, consideration needs to be given to the economies of scale afforded with environmental liability insurance as part of your risk transfer strategy, versus self-insurance.<\/span><\/p>\n

    Furthermore, most commercial insureds only consider the remediation costs associated with a pollution event. However, often the clean-up costs are far less than other costs that can arise from the loss.\u00a0<\/span><\/p>\n

    Overlooked Benefits<\/b> of Environmental Liability Insurance:<\/span>\u00a0\u00a0<\/b><\/p>\n

      \n
    • Defense Costs<\/b>:<\/b>\u00a0 Environmental liabilities are relatively new and very litigious.\u00a0 Even if you do nothing wrong you can still get named in a suit and must expense defense costs (legal fees, environmental investigations, etc.)\u00a0\u00a0<\/span><\/li>\n<\/ul>\n
        \n
      • \u00a0<\/span>Claim Management<\/b>:<\/b>\u00a0 All policies come with specialists to assist you in handling a claim.\u00a0 Who oversees communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages\u2026.?<\/span><\/li>\n<\/ul>\n
          \n
        • Third Party Liability<\/b>:<\/b>\u00a0 Most of the time the cost to clean up the environmental problem\/s is far less than the associated claims that come in from third parties for bodily injury, property damage and business interruption.\u00a0 You need to look at your client\u2019s and neighbors that can be impacted if you or a sub-contractor\/vendor cause an environmental loss.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/li>\n<\/ul>\n

          Environmental Liability Insurance Products<\/span><\/h3>\n

          Environmental Impairment Liability (EIL)<\/b><\/p>\n

          EIL is for businesses that are susceptible to economic loss caused by pollution that actually or allegedly originated from their operations.\u00a0 Sometimes referred to as pollution legal liability this coverage is for those who own, operate, lease, or have any other insurable interest in real property and the operations. Coverage can be written in a variety of ways addressing unknown preexisting conditions or new conditions.\u00a0 Coverage can include third party bodily injury and property damage along with business interruption and extra expense, on and off site cleanup costs, legal defense expenses, non-owned disposal sites, transportation and more. EIL can be offered on multiyear terms.\u00a0 Most EIL policies cover above ground storage tanks.<\/span><\/p>\n

          Transportation Pollution Liability (TPL)<\/b><\/p>\n

          Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of their cargo. Broadened auto pollution liability (typically Form CA 9948) affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and over turn of transported cargo.<\/span><\/p>\n

          Underground & Aboveground Storage Tanks (UST)<\/b><\/p>\n

          Financial responsibility requirements ensure that owners and operators of underground & aboveground storage tank systems can financially handle a release from an underground storage tank. The responsibility encompasses the ability to pay funds for corrective action and third party bodily injury and property damage from non-sudden and sudden and accidental releases from a regulated underground system.<\/span><\/p>\n

          Contractors Pollution Liability (CPL)<\/b><\/p>\n

          Contractors Pollution Liability (CPL) insurance protects the insured should they cause or exacerbate an environmental condition while performing their contractor services while operating away from any premises they own, rent, lease or occupy. For Marina\u2019s and Shipyards, this would include services such as servicing boats at 3<\/span>rd<\/span> party locations.\u00a0<\/span><\/p>\n

          Coverage can be written on a job specific basis, or on a blanket basis to cover all the work performed by the insured.\u00a0 Most policies can be endorsed to cover Transportation Pollution Liability, mold, lead, asbestos, defense outside the limits, off-site disposal coverage, etc. Contractors incorporating CPL coverage as part of their risk transfer strategy drive their growth and profits by marketing the benefits CPL coverage affords in reducing job interruption due to environmental issues.\u00a0\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

          Environmental exposures include Chemicals used for aquatic weed control;\u00a0Corroded wastewater and storm water sewers;\u00a0Fumes and wastes from Fiberglass work, Painting and sanding and more.<\/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":[183],"class_list":["post-2749","post","type-post","status-publish","format-standard","hentry","category-risk","tag-marina","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2749","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=2749"}],"version-history":[{"count":1,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2749\/revisions"}],"predecessor-version":[{"id":2751,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2749\/revisions\/2751"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}