Asbestos is a group of six naturally occurring fibrous minerals composed of thin, needle-like fibers. It was used by builders at the end of the 19th century because of its affordability and resistant to heat, electricity, and corrosion.
It was used as insulation around pipes, electrical wiring, and in many building components such as floor and ceiling tiles and insulation, caulking, drywall, and drywall joint compound.
Why is asbestos dangerous?
Over decades, trapped asbestos fibers can cause inflammation, scarring and eventually genetic damage to the body’s cells. A rare and aggressive cancer called mesothelioma can be caused by asbestos exposure. It also causes other forms of cancer as well as progressive lung disease.*
After numerous health concerns were raised and studies had been conducted, the U. S. Environmental Protection Agency (EPA) issued a ban and “phase out rule.” The phase out rule was eventually overturned as a result of issues raised by the asbestos industry and many consumer products still contain trace elements of asbestos such as concrete water tanks, panels that surround bathtubs, wood burning stoves, and some insulation materials.
Insurance solutions to the environmental exposures that may stem from asbestos abatement operations
There are two main types of insurance products that apply to work conducted by asbestos abatement contractors:
Contractors Pollution Liability (CPL) policies are designed to respond to claims against contractors for pollution events related to their abatement operations. They will respond to claims asserted against asbestos abatement contractors for third party Bodily Injury, Property Damage, and Clean up Costs. They may be endorsed to provide coverage for pollution events during transportation of asbestos waste or materials used during abatement activities as well as pollution events at disposal sites that may come back to the generators of materials sent to disposal sites. There have been cases where abatement contractors have been held responsible under environmental laws for environmental claims against disposal sites because of their involvement in the disposal of hazardous asbestos containing materials.
Pollution Liability (EIL) policies are designed to respond to claims against asbestos abatement contractors for pollution events related to their owned facilities where they may store equipment or hazardous materials, including asbestos waste. This type of policy will respond to claims asserted against contractors for third party Bodily Injury, Property Damage, and Clean up Costs. They may be endorsed to provide coverage for pollution events during transportation of hazardous asbestos containing materials as well as pollution events at disposal sites that may come back to the generators of materials sent to disposal sites. In addition, First Party Business Interruption is typically an available enhancement to this type of policy.
