Environmental consultants work in a variety of industries, from construction, to waste management, real estate and of course regulatory agencies. We have years of experience working with a wide range of environmental consultants and we are here to assist you in explaining the need for environmental coverage to these clients and seek the options that best suit them.
Why do environmental consultants need pollution insurance?
Environmental consultants help ensure the legal compliance as well as safety of areas they assess. Some examples of the work environmental consultants perform may include:
Phase I, II, III Reports
Consultants assess property to determine if any historical or pre-existing pollution or contaminant condition exists.
Soil Sampling and Analysis
Provide laboratory analysis of soil and water to determine potential risks to health and safety.
Inspection for Contaminants
Inspect locations to assess potential contamination in the form of lead, mold, asbestos, radon, and other possible risks. These inspections can help identify potential indoor air quality issues that may affect the health of residents or workers at a location. In addition to performing inspections the consultant can, in some cases, advise the client how to mitigate the contamination and monitor for potential contamination in the future.
Storage Tank Assessment
This category includes those who perform inspections to ensure storage tanks are in compliance with legal guidelines as well as detecting any potential and existing pollution conditions.
Health & Safety
Provide training and continuing education for employees regarding safety guidelines and environmental regulations compliance. In addition, these consultants may help create or advise how to create health and safety plans for businesses.
Expert Witness/Litigation Support
Provide for legal advice or testimony based on their area of understanding regarding environmental regulations and potential contamination exposures.
Types of Insurance for Environmental Consultants
GL/Contractors Pollution Liability/Professional
A GL/Contractors Pollution Liability/Professional policy is generally the best option of coverage for an environmental consultant. Not only does it cover their General Liability and Pollution exposures, but most importantly it covers their Professional exposure as well (which is typically the most important coverage for this type of risk). With this option everything is written on a single form, offering the best price for the coverage given.
Contractors Pollution Liability/Professional
The Contractors Pollution Liability/Professional policy is a combined Pollution and Professional coverage form. It provides coverage to environmental consultants, environmental engineers, and other environmental professionals who have an E&O exposure from their professional services, as well as a pollution exposure from any jobsite/project management operations. We are able to add the General Liability for most environmental consulting accounts.
Site Pollution Liability
Site Pollution Liability insurance is designed to cover claims arising from pollution releases at, on, or emanating from a specific scheduled location. Examples may include a contractor’s equipment yard or a self-storage facility.
A Workers Compensation policy provides coverage for an employer’s exposure arising out of job-related injury/death resulting from an accident or occupational disease sustained by employees. Moving Workers Compensation accounts from assigned risk (or other state programs) into a program will offer exceptional coverage at a very competitive rate.
Automobile insurance coverage is typically required for most businesses; an Auto policy including Pollution is an ISO based Auto form including broadened pollution endorsements and any motor carrier filings.
Follow Form Excess Liability
If underlying General Liability, Pollution and/or Professional Liability is offered, a Follow Form Excess policy is also available. The Follow Form XS will go over the qualifying environmental coverage lines, as well as the underlying Auto and Employers Liability if applicable.
Claim Scenarios for Environmental Consultants
- An environmental consultant provided plans and specifications for the installation of monitoring wells at a contaminated facility. Contamination had seeped from the ground surface into a shallow aquifer. Following installation of monitoring wells, sampling showed evidence of contamination in both the shallow aquifer and in a lower lying aquifer. The facility owner filed an insurance claim against the consultant, alleging that well placement (location and depth) was responsible for the cross-contamination of the lower lying aquifer. The settlement amounted to $250,000.
- 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 consultant failed to delineate wetlands on property which was to be developed into a new regional landfill. As a result, the landfill had to be re-engineered, thus delaying its opening. The settlement amounted to $7 million.
Cost of coverage:
The cost of pollution insurance varies widely depending on the size and type of insured, limits being requested, claims history, etc. Our carriers evaluate the range of operational risks associated with the insured, geographic location, length of time in business, and other factors that may help to shape the account.
Contact Beacon Hill Associates
Please call (800) 596-2156 or contact us for more information. Our team is here to help you.