{"id":2752,"date":"2022-05-11T22:04:37","date_gmt":"2022-05-11T22:04:37","guid":{"rendered":"http:\/\/estrategist.com\/website\/members\/?p=2752"},"modified":"2022-05-11T22:04:37","modified_gmt":"2022-05-11T22:04:37","slug":"marinas","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/marinas\/","title":{"rendered":"Marinas"},"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\u00a0<\/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 property (Vapor Intrusion);\u00a0 Storm water runoff;\u00a0 Loading and unloading of pollutants over unsealed areas (fueling operations);\u00a0 Natural resource damages;\u00a0 Equipment maintenance services; Corroded wastewater and storm water sewers;\u00a0 Sick building syndrome;\u00a0 Impacting underground utilities on Marina property;\u00a0 No auditing of waste handling and disposal companies; Boat and 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; Brownfield\u2019s\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 Local 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 business 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 $30,000,000.\u00a0\u00a0\u00a0 \u00a0<\/span><\/li>\n
  2. 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
  3. A Marina owned several parcels of vacant land.\u00a0 When the Marina visited the site to begin construction of a new building they discovered that several piles of unidentified waste had been illegally dumped on the property. The Marina had the piles tested and test results showed the piles contained hazardous waste.\u00a0 Cost for the Marina to dispose of the waste exceeded $650,000.\u00a0\u00a0\u00a0<\/span><\/li>\n
  4. A marina acquired property previously used for manufacturing.\u00a0 The marina planned to expand their inside boat storage.\u00a0 When excavation began, an abandoned on site waste treatment lagoon was discovered.\u00a0 The soil had to be removed at the marinas expense.\u00a0 Remediation and disposal costs exceeded $750,000.\u00a0<\/span><\/li>\n
  5. An excavation\/grading contractor unknowingly spread petroleum-contaminated soil across a project site during fill operations.\u00a0 The contractor and Marina were named in a lawsuit for exacerbating the extent of contamination.\u00a0 After lengthy deliberations, the contractor and Marina were eventually removed from the lawsuit, however, they had invested $150,000 in defense.\u00a0<\/span><\/li>\n
  6. An excavation contractor was subject to cleanup costs and business interruption expenses in excess of $500,000 when they ruptured and unmarked petroleum pipeline.\u00a0 The contractor was forced out of business so the property owner a Marina had to pay the bill.<\/span><\/li>\n
  7. 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 for investigation, removal and disposal exceeded $320,000.\u00a0\u00a0<\/span><\/li>\n
  8. At a Port\u2019s wastewater treatment plant pumping station, a faulty valve malfunctioned.\u00a0 As a result, 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
  9. An asphalt paving contractor paved a parking lot.\u00a0 At the end of the day, the tack coat was sprayed onto the sub-base prior to paving. During the evening, a major thunderstorm caused the tack coat to wash off and flow into a nearby lake. The contractor was responsible for cleanup costs and natural resource damages which exceeded $800,000.\u00a0 The damages caused the contactor to file bankruptcy, thus leaving the marina (property owner) as the responsible party to pay for the damages.<\/span><\/li>\n
  10. After performing routine engine maintenance on a tugboat 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 clean-up and third-party property damage claims exceeded $100,000.<\/span><\/li>\n
  11. The new owner of a marine supply and boat sales business was dismayed to learn that years of historic boat manufacturing and repair work had resulted in soils contaminated with lead paints and asbestos.<\/span><\/li>\n<\/ol>\n

    Overlooked Benefits of Environmental Liability Insurance\u00a0<\/strong><\/p>\n

    Unlike most liability exposures impacting marinas, pollution losses are not a frequency risk, but rather a severity risk. Since every marina is impacted by environmental liabilities, 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

    Three Overlooked benefits<\/b> of environmental liability insurance:<\/span><\/p>\n

      \n
    1. 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 have to expense defense costs i.e. legal fees, environmental investigations, etc.\u00a0\u00a0<\/span><\/li>\n
    2. Claim Management<\/b>:<\/b>\u00a0 All policies come with specialists to assist you in handling a claim.\u00a0 Who is in charge of communications, public relations, emergency response, government compliance, financial management, third party claims for bodily injury, property damage, natural resource damages\u2026.?<\/span><\/li>\n
    3. Third Party Liability<\/b>:<\/b>\u00a0 The majority 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\u00a0<\/span><\/li>\n<\/ol>\n

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

      Environmental Impairment Liability (EIL)\u00a0<\/b><\/p>\n

      EIL is for Marinas 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.\u00a0 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 Sewer lines and pump\/lift stations can be covered by EIL.\u00a0 Most EIL policies cover above ground storage tanks and some can include underground storage tanks. EIL coverage can also be used to protect for environmental losses from tenants.\u00a0\u00a0<\/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.\u00a0 CPL protects the insured for covered operations performed by or on behalf of the insured, while operating away from any premises they own, rent, lease or occupy.<\/span><\/p>\n

      CPL can be offered on a claims made or occurrence basis.\u00a0 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\u00a0\u00a0<\/span><\/p>\n

      Property Transfer Coverage<\/b><\/p>\n

      When buying or selling property there can be unknown preexisting environmental conditions. Since a Phase I or Phase II survey cannot guarantee uncovering all potential environmental liabilities, insurance companies have created property transfer insurance. This coverage protects the new owner or any party with an insurable interest, against unknown environmental conditions that may be discovered during the policy period, that were not caused by the new owner.\u00a0 This coverage not only helps to keep the property at its maximum value, it will assist the purchaser in being able to secure the necessary financing to complete their transaction.\u00a0<\/span><\/p>\n

      Transportation Pollution Liability<\/b><\/p>\n

      Generally, business auto or truckers\u2019 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.\u00a0 Note:\u00a0 An MCS-90 endorsement is not pollution coverage. Coverage can also be acquired to protect against losses from water craft, rail or aircraft.\u00a0<\/span><\/p>\n

      Underground and Aboveground Storage Tanks<\/b><\/p>\n

      Financial responsibility requirements ensure that owners and operators of underground storage tank systems have the ability to financially handle a release from an underground storage tank system. 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.\u00a0\u00a0<\/span><\/p>\n

      Note:\u00a0 Marinas and Shipyards have potential indirect environmental exposures from the vendors you hire to perform services.\u00a0 Should your vendors cause an environmental loss or exacerbate an existing environmental issue their general liability insurance policy generally will have either an absolute or total pollution exclusion.\u00a0 In order to be protected you should make sure your vendors have the proper environment insurance coverage before they do any work on your behalf.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

      Environmental exposures include Spills\/releases during loading\/unloading process;\u00a0 Illegal \/ midnight dumping of pollutants, fuels, waste from tenants, ships, and other 3rd parties; Corroded wastewater and storm water sewers 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-2752","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\/2752","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=2752"}],"version-history":[{"count":1,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2752\/revisions"}],"predecessor-version":[{"id":2753,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2752\/revisions\/2753"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}