Environmental Exposures & Insurance for Hotels

Hotels have always been thought of as facilities that are designed to provide a high level of comfort and convenience for their clients. In order to achieve these goals, they may use chemicals for cleaning, pool maintenance, cooling system maintenance, or landscaping. They implement procedures that ensure there is no potential for mold growth, public access to lead paint, or asbestos. They might even conduct annual environmental awareness training for their staff, indoor air quality testing, or storage tank testing.  All of these efforts are important, however, even with the most carefully thought out environmental risk approach, things can go wrong. There could be spills of maintenance chemicals, moisture penetrating the building envelope causing mold growth, or an inadvertent release of asbestos in spite of a proper asbestos maintenance plan.

Compounding the level of potential environmental exposures that hotels face is the growing trend to be part of a movement that is catering to the demands of their clients to reduce the facility’s energy needs, water needs, and waste. As they move forward with these green measures, their reputations become solidly tied to these efforts.  But what would happen if there was an unanticipated pollution event at one of these hotels? What if the green building components that they brought in backfired and created a pollution condition rather than a pleasant environment?  Because many green building components and initiatives are still untested, these ideas are not far-fetched.

Environmental Coverage for Hotels

There are numerous areas of a hotel from which environmental exposures can stem, including management, housekeeping, maintenance/operations, engineering, and reputational activities. There is one type of environmental insurance policy that is most applicable for addressing concerns at hotels―a Site Pollution policy, also known as a Premises Pollution policy, EIL, or PLL. This product is designed to provide coverage for third party property damage, third party bodily injury, and first party cleanup as a result of pollution conditions stemming from the activities at hotels.  It can also be endorsed to provide coverage for pollution events during the transportation of waste from hotels to a disposal site as well as for disposal at waste disposal sites.

Request more information on environmental insurance for hotels.

Read a recent article in Beacon Hill’s e-magazine The Summit on Legionella.