Environmental Insurance Opportunities for Non-Profit Organizations
A non-profit organization is a group established for purposes other than generating profit and in which no part of the organization’s income is distributed to its to members or officers. Environmental insurance can provide coverage for a non-profit organization’s location, as well as for exposures stemming from operations they perform away from their site. It may also address the mismanagement of the organization, which could lead to a pollution condition.
Some Examples of Non-Profit Risks
Non-profit organizations include may public schools, public charities, churches, public clinics and hospitals, political organizations, museums, legal aid centers, research institutes, and more.
Premises Pollution Liability (EIL)
Premises Pollution Liability (EIL) is designed for non-profits that are at one location or multiple locations. It provides First and Third Party Liability, Clean Up coverage, and Third Party Bodily Injury and Property Damage coverage. This product can be enhanced to provide coverage for First Party Business Interruption in the event of a pollution release.
- Pollutants coming onto the properties from neighboring properties.
- The non-profit business might bring contractors to their properties that may release asbestos, lead, polychlorinated biphenyls (PCBs), solvents, paints, or other construction materials during maintenance or renovation activities. If the contractors do not have adequate environmental coverage to respond to releases of these materials, the non-profit may incur additional costs for cleanup or they may have to submit a claim to their insurance company.
- Housekeeping: spills or leaks of cleaning chemicals; the use of fertilizers, pesticides, and herbicides on the property.
- Maintenance/operations: Indoor air quality; mold, Legionella, etc.; building component off-gassing (ex. carpet glue fumes, paint emissions, wood adhesive fumes, etc.); carbon monoxide from boiler rooms, furnaces, or water heaters).
- Reputational/public relations: if the non-profit has an environmental incident, and it stems from the activities on the property, their reputation could be at risk.
Contractors Pollution Liability (CPL)
Contractors Pollution Liability (CPL) is another insurance product that helps non-profit organizations if they perform services away from their premises.
- Pollution conditions stemming from contracting operations performed as part of the non-profit’s operations. Weatherizing properties, building homes or helping to relocate people can all lead to pollution issues.
- Pollution conditions at properties where the insured provides services, but they don’t operate them. Examples could include share space mentoring programs, habitational facilities where members counsel, etc. A pollution release from cleaning solvents, building materials, etc could come back to the non-profit.
*In addition to Site Pollution Liability and Contractors Pollution Liability, we can offer E&O, Transportation Pollution Liability, Inland Marine, Storage Tank Coverage, Pollution OCIPs, and more.
Contact Beacon Hill Associates
Please call (800) 596-2156 or contact us for more information on environmental insurance for non-profit organizations.
Sources:
https://www.law.cornell.edu/wex/non-profit_organizations
https://www.nolo.com/legal-encyclopedia/insurance-types-for-nonprofits-32393.html
Type: Blog
Topic: non-profit, volunteer
