{"id":2827,"date":"2022-05-16T22:26:40","date_gmt":"2022-05-16T22:26:40","guid":{"rendered":"http:\/\/estrategist.com\/website\/members\/?p=2827"},"modified":"2022-05-16T22:26:40","modified_gmt":"2022-05-16T22:26:40","slug":"ski-resorts","status":"publish","type":"post","link":"https:\/\/estrategist.com\/members\/ski-resorts\/","title":{"rendered":"Ski Resorts"},"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

Ski Resort owners should be aware that pollutants (such as mold \/ Legionella) are excluded from coverage on most General Liability policies. And General Liability policies that do provide pollution coverage, typically do so on a limited basis, with inadequate limits and\/or strict discovery and reporting requirements for there to be coverage.\u00a0 If you experience a pollution loss, will your insurance provide adequate coverage?\u00a0<\/span><\/p>\n

Environmental Exposures Impacting Ski Resorts<\/strong><\/p>\n

May include, but are not limited to: <\/b>\u00a0<\/b>Storm water runoff,\u00a0 Natural Resource Damages;\u00a0 Wastewater treatment plants\/pumping stations exposures from nuisance odor claims, raw sewage rupture, chlorine gas emissions;\u00a0 Unknowingly using contaminated water for snowmaking,\u00a0 Sick building syndrome;\u00a0 Asbestos;\u00a0 Lead;\u00a0 Mold \/ Legionella;\u00a0 Environmental cleanup and liabilities that result after a fire is extinguished;\u00a0 Historic site conditions (i.e. old underground tanks, surface impoundments, lagoons, clarifiers, unknown\/old landfills);\u00a0 Sewer lines;\u00a0 Maintenance\/Service garages;\u00a0 Aboveground and\/or underground storage tanks;\u00a0 Leaks from elevator hydraulic fluid storage tanks;<\/span> Inadequate or no secondary containment for above ground storage tanks;\u00a0 Equipment and Parts washer solvents;\u00a0 Storage and use of pesticides and herbicides;\u00a0 Air emissions from refrigeration equipment;\u00a0 Petroleum waste products;\u00a0 Vehicle and equipment storage\/parking over unsealed surfaces;\u00a0 Transfer and recycling facilities;\u00a0 Incinerators (i.e. airborne particulates, heavy metals (airborne and in residual ash), airborne volatile organic compounds);\u00a0 Spills\/releases during loading\/unloading process;\u00a0 Waste handling and disposal operations;\u00a0 No auditing of waste handling and disposal companies;\u00a0 Possible adverse reactions and interactions of chemical compounds that accidentally commingle during a fire;\u00a0 Leaking fluids and fuels from maintenance and grooming equipment;\u00a0 Contamination from neighboring properties migrating onto your property\u2026.\u00a0<\/span><\/p>\n

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

    \n
  1. A ski resort unknowingly used contaminated water for its snow making resulting in hundreds of thousands of gallons of contaminated water being spread across the lower part of the mountain.\u00a0 Old mining tailings from a closed down mine in the area was the source of the contamination and had been contaminating the water for some time. The resulting claim was for over $500,000 for the cleanup and remediation of the contaminated soil and mine area.<\/span><\/li>\n
  2. A chlorine release from a wastewater treatment plant resulted in toxic air emissions. Area residents and businesses were evacuated, and several people were hospitalized for inhalation of fumes.\u00a0 Bodily injury claims amounted to $70,000 and business interruption claims totaled $120,000.<\/span><\/li>\n
  3. Maintenance workers at a resort were unloading 400-gallon totes of muriatic acid, which is used as a pool chemical.\u00a0 One of the totes was dropped, releasing 150 gallons of the acid which ran into a nearby storm sewer.\u00a0 The acid caused aquatic life to die and other natural resource damages.\u00a0 Remediation costs and natural resource damages exceeded $400,000.<\/span><\/li>\n
  4. While remodeling rooms at a hotel resort, contractors discovered mold within the building\u2019s walls and ceilings. After further investigation, mold was also found throughout the property. Cost to remediate the mold and lost rental revenues during remediation cost the resort over $600,000.\u00a0<\/span><\/li>\n
  5. During the night, a fire broke out and the fire department\u2019s high-pressure hoses forced melting plastics, metals, insulation, roofing, drywall, chemicals, and other materials to build up inside the building\u2019s foundation, creating a toxic \u201csludge\u201d. Some of the toxic \u201csludge\u201d escaped the building and migrated into the surrounding soils and a nearby stream. The property owner was responsible for clean-up costs and natural resource damages, which totaled over $2,000,000.\u00a0 <\/span>NOTE: fire departments are immune to pollution claims arising from their work while putting out fires. <\/span><\/li>\n
  6. An electrical contractor was hired to upgrade a buildings electrical system.\u00a0 During trenching operations, a backhoe hit a natural gas pipeline causing an explosion. Third parties filed bodily injury claims against the contractor, as well as the resort whose club house was destroyed in the explosion. Claims exceeded $4.5 million.\u00a0<\/span><\/li>\n
  7. A maintenance garage used solvents for parts washing performed the work over a drain leading to an on-site septic system. Over time, the septic system leach field migrated into the surrounding soils and groundwater. At the time of the septic system closure and conversion to a public sewer system, the contamination was discovered. Site remediation involved soil removal and installation of a groundwater recovery system. The costs exceeded $720,000.\u00a0<\/span><\/li>\n
  8. The facilities department for a ski resort hired a licensed hazardous waste transporter to deliver and pick-up three barrels of spent solvents, used for cleaning their boiler, to a treatment plant. While loading on the ski resort grounds, one barrel fell and spilled its contents, which seeped into the ground.\u00a0 After a period, neighbors notified the state health department that their well water smelled odd.\u00a0 Health officials determined that chemicals from the accident had seeped into their wells. The ski resort paid $1.2 million in damages and clean-up costs.<\/span><\/li>\n
  9. A fiber optics company was hired to install a network of data and voice cables. The job included directional drilling under several roads. While drilling, the contractor hit a fuel line and did not report it.\u00a0 After about 2 years, residents in the area smelled gas in their well water. During investigation, the damaged fuel line was discovered and determined as the source of contamination. Since the fiber optics company was no longer in business, the ski resort was held liable for damages and clean-up costs in excess of $2.7 million.<\/span><\/li>\n<\/ol>\n

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

    Unlike most liability exposures impacting Ski Resorts, pollution losses are not a frequency risk, but rather a severity risk. Because all Ski Resorts 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 often arise from the loss.<\/span><\/p>\n

    Overlooked Benefits<\/b> of Environmental Liability Insurance<\/b>:<\/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 must 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 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>:<\/b>\u00a0 Most 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 Coverages<\/span><\/h3>\n

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

      EIL is for ski resorts 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 clean up costs, legal defense expenses, non-owned disposal sites, transportation and more. EIL can be offered on multi year terms.\u00a0 Sewer lines and pump\/lift stations can be covered by EIL.\u00a0 Most EIL policies cover above ground storage tanks.<\/span><\/p>\n

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

      When buying, selling or condemning property their 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. Transportation pollution liability 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.\u00a0\u00a0<\/span><\/p>\n

      UNDERGROUND AND ABOVE 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 system.\u00a0<\/span><\/p>\n

      Note:<\/b>\u00a0 For Ski Resorts, you have potential indirect environmental exposures from the vendors you hire to perform services.\u00a0 Should your vendors cause an environmental problem 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><\/p>\n

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

      Ski Resorts have potential indirect environmental exposures from the service vendors & contractors they hire to perform work on their behalf.\u00a0 CPL insurance protects Ski resorts should their vendors cause or exacerbate an environmental condition.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      Environmental exposures include Natural Resource Damages;\u00a0 Wastewater treatment plants\/pumping stations exposures; Storage and use of pesticides and herbicides 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":[202,398],"class_list":["post-2827","post","type-post","status-publish","format-standard","hentry","category-risk","tag-property-owners","tag-resorts","entry"],"_links":{"self":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2827","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=2827"}],"version-history":[{"count":1,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2827\/revisions"}],"predecessor-version":[{"id":2828,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/posts\/2827\/revisions\/2828"}],"wp:attachment":[{"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/media?parent=2827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/categories?post=2827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/estrategist.com\/members\/wp-json\/wp\/v2\/tags?post=2827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}