Environmental Contractor Claim Scenarios

An environmental consultant performed a Phase I Site Assessment at a site that had been used previously for industrial purposes. The consultant submitted a report stating that negligible contamination had been found. The property was subsequently sold. During excavation, an unregistered leaking underground storage tank (UST) was discovered on the site. The property developer sued the consultant for $1.2 million for remediation expenses, lost profits, and diminution in value.

A developer retained a consultant to perform a geologic/geotechnical investigation for a residential subdivision. During final grading of the site, a major landslide occurred which extended off-site and impacted adjacent properties. The developer filed a suit against the consultant for breach of contract and negligence in failing to provide proper design engineering services during excavation of a sloped area. The resulting settlement totaled $300,000.

A landfill retained a consultant to design and perform construction observation for improvements to a site, including the installation of a storm drainage system. An explosion occurred in a concrete out-flow box into which the landfill system drained. Bodily injury insurance claims due to worker injuries exceeded $400,000.

These claims examples have been provided to us by our insurance companies over the years. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.