{"id":2817,"date":"2022-05-16T22:10:03","date_gmt":"2022-05-16T22:10:03","guid":{"rendered":"http:\/\/estrategist.com\/website\/members\/?p=2817"},"modified":"2022-05-16T22:10:03","modified_gmt":"2022-05-16T22:10:03","slug":"vineyards-wineries","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/vineyards-wineries\/","title":{"rendered":"Vineyards & Wineries"},"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.<\/p>\n

Many trucking companies assume that claims arising from their operations are covered by their general liability policy or commercial auto policy. However, claims resulting from a \u201cpollution incident\u201d are typically excluded from general liability and commercial auto policies (except for fluids necessary to operate a vehicle). Policies that do provide pollution coverage, typically do so on a limited basis and with inadequate limits, which leaves trucking companies exposed to potentially uncovered claims. What pollutants are impacting your business?<\/p>\n

Environmental Exposures Impacting Vineyards & Wineries<\/b><\/p>\n

Due to their operations, Vineyards & Wineries (V&W) face a wide array of environmental exposures.\u00a0 The following offers a partial list of environmental exposures V&W may face:\u00a0 Storage, use, disposal of fertilizers, pesticides, herbicides (Glyphosate)\u2026.;\u00a0 disposal of wastes in lagoons, septic or leach systems;\u00a0 leaking above ground and\/or underground storage tanks;\u00a0 air emissions from chemical applications;\u00a0 storm water runoff;\u00a0 <\/span>storage of fuels, antifreeze, oil and hydraulic fluids; <\/span>\u00a0<\/span>spills from loading and unloading of farm equipment and supplies;\u00a0 old equipment storage yards;\u00a0 on-site compost piles;\u00a0 <\/span>historical contamination;\u00a0 overuse of irrigation;\u00a0 natural resource damages;\u00a0 vandalism; inadequate or no auditing of waste handlers;\u00a0 wastewater lagoons;\u00a0 old or abandoned wells not properly closed allowing contamination into the soil and groundwater;\u00a0 <\/span>easements on the property (rail\/roadways, pipelines, power lines, waterways) with potential environmental implications;\u00a0 uncontained floor drains;\u00a0 spills and air emissions from emergency power generator systems;\u00a0 adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;\u00a0 Siltation of nearby streams from improper erosion control management;\u00a0 <\/span>air emissions from refrigerants \u2026.<\/span><\/p>\n

Environmental Loss Examples for Vineyards & Wineries<\/b><\/p>\n

    \n
  1. Over the years, a winery 40-year-old wastewater treatment plant had been upgraded several times.\u00a0 Improper closure of an on-site surface impoundment allowed gradual seepage into groundwater.\u00a0 Constituents contaminated the underlying groundwater, which was a potable water supply for the neighboring community.\u00a0 Groundwater cleanup and emergency water supplies for residents exceeded $350,000.\u00a0<\/span><\/li>\n
  2. Several years after a vineyard was planted excessive algae and bacteria developed in a nearby stream and lake.\u00a0 Riparian owners filed claims in excess of $1,000,000 against the vineyard for property and natural resource damages, perceived bodily injury and loss of enjoyment caused by excessive fertilizer runoff.\u00a0\u00a0<\/span><\/li>\n
  3. A broken seal in the refrigeration line allowed refrigerants to sicken several guests while touring the winery plant.\u00a0 Injured guest and workers were taken to the local hospital for treatment.\u00a0 Third part bodily injury claims were filed against the winery.\u00a0\u00a0<\/span><\/li>\n
  4. A new V&W acquired property previously used for farming.\u00a0 An environmental site assessment determined the property to be “clean.”\u00a0 When excavation for the winery began, the excavation contractor ruptured several drums of pesticides and herbicides that were illegally burred on the property.\u00a0 Soil and ground water remediation along with drum disposal costs exceeded $1,000,000\u00a0<\/span><\/li>\n
  5. <\/b>The concrete secondary containment of a 5,000-gallon diesel aboveground storage tank failed when 4,000 gallons spilled into the containment.\u00a0 The diesel caused soil and ground water contamination.\u00a0 Total costs for investigation, removal\/disposal and legal fees exceeded $400,000.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n

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

    V&W generally lack the financial strength to self-insure their environmental liabilities.\u00a0 Since every V&W 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

    The <\/span>three main benefits<\/b> environmental liability insurance offers:\u00a0\u00a0<\/span><\/p>\n

      \n
    1. Defense Costs:<\/b> 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, .\u00a0\u00a0<\/span><\/li>\n
    2. Claim Management:<\/b> 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
    3. Third Party Liability:<\/b> 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\u00a0\u00a0<\/span><\/li>\n<\/ol>\n

      Environmental Liability Insurance for Vineyards & Wineries<\/h3>\n

      ENVIRONMENTAL IMPAIRMENT LIABILITY (EIL)\u00a0<\/b><\/p>\n

      EIL is for V&W that own, rent, lease, operate or have any other insurable interest in real property (a fixed site facility like a vineyard, processing plant,\u2026.) that can be susceptible to pollution liabilities that actually or allegedly originated from the insured property.\u00a0<\/span><\/p>\n

      Coverage can include: Pre-existing unknown pollution, new pollution conditions, first party on-site clean up, third party bodily injury, property damage, business interruption and extra expense, off site clean up costs, legal defense expenses, transportation pollution liability, off site disposal coverage\u2026.\u00a0 Multi year term policies can be negotiated.\u00a0<\/span><\/p>\n

      PROPERTY TRANSFER COVERAGE\u00a0<\/b><\/p>\n

      Note:\u00a0 <\/b>This coverage is designed for buyers or sellers of vineyards and wineries.<\/span><\/i><\/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<\/span><\/p>\n

      Property transfer coverage assists to keep the property at its maximum value while allowing the insured to negotiate more favorable loan terms than property not supported by this coverage.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

      TRANSPORTATION POLLUTION LIABILITY<\/b><\/p>\n

      Generally, Business Auto or Truckers policies will exclude pollution losses arising from spills or other releases of transported cargo. Transportation pollution liability affords coverage during the loading, unloading and transportation, for a spill, release or sudden upset and overturn of transported cargo.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

      UNDERGROUND GROUND STORAGE TANKS\u00a0<\/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. 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 tank system.\u00a0\u00a0<\/span><\/p>\n

      CONTRACTORS POLLUTION LIABILITY\u00a0<\/b><\/p>\n

      Note:<\/b>\u00a0 V&W<\/span> have potential environmental exposures from the vendors they hire to perform services.\u00a0 Should your vendors cause an environmental problem or exacerbate an existing environmental issue their general liability insurance policy typically will have either an absolute or total pollution exclusion.\u00a0 In order to be protected you should make sure your vendors have this insurance coverage before they begin doing work.<\/span><\/i><\/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, off-site disposal coverage \u2026.\u00a0\u00a0<\/span><\/p>\n

      PROFESSIONAL LIABILITY<\/b><\/p>\n

      Note:<\/b>\u00a0 V&W<\/span> hire professionals to perform environmental site assessments, (mold, radon, asbestos or lead testing, Phase I, II, or III site assessments, tank testing, soil, waste water, air emissions\u2026) you should make sure these professionals\u00a0 have this coverage in force before they begin working for you.<\/span><\/i><\/p>\n

      Should a environmental engineer\/consultant or analytical laboratory make an error or an omission in performing professional services for you they will need a E&O policy\u00a0<\/span><\/p>\n

       <\/p>\n

      including pollution for there to be coverage.\u00a0 Some professional services could include Phase I or Phase II site assessments, All Appropriate Inquiry (AAI), air monitoring, lead and asbestos assessments, waste characterization, remedial action plans, water testing, mold survey\u2019s, environmental training\u2026.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      Environmental exposures include Storage, use, disposal of fertilizers, pesticides, herbicides (Glyphosate); disposal of wastes in lagoons, septic or leach systems; \u00a0 uncontained floor drains;\u00a0 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":[19,386],"class_list":["post-2817","post","type-post","status-publish","format-standard","hentry","category-risk","tag-food-industry","tag-wine","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2817","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=2817"}],"version-history":[{"count":2,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2817\/revisions"}],"predecessor-version":[{"id":2819,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2817\/revisions\/2819"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}