News From Beacon Hill – December 2015

Legionella: A Growing Concern to Property Owners & Managers 

By Michael Tighe, Assistant Vice President

This year, Legionella outbreaks created a media frenzy in New York City and Chicago with an ongoing case in Bronx, New York. According to the Center for Disease Control and Prevention (CDC) there are as many as 18,000 hospitalized legionella cases a year and the Occupational Safety and Health Administration (OSHA) approximates 4,000 deaths per year. The disease was named after the first known outbreak at a Philadelphia hotel where an American Legion convention was held and killed 34 people in 1976. Over the years, other significant outbreaks have occurred in Atlanta and Pittsburg hospitals, casinos in Las Vegas, and the Playboy mansion in Los Angles.

Legionella is a bacteria usually found in water and thrives in temperatures of 68 degrees – 120 degrees Fahrenheit. While there are almost 50 species of Legionella, not all are harmful. Legionella pneumophila is considered the most dangerous …Read the complete article.


Environmental Coverage for Brownfields

According to the Environmental Protection Agency (EPA), “a brownfield is a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” The EPA goes on to further estimate that there are approximately 450,000 brownfields in the United States.

Environmental Insurance Products for Brownfields

There are two primary products that can be useful for Brownfields projects:

The first product is called a Site Pollution Policy (SPL) and is also sometimes known as a Pollution Legal Liability (PLL) policy or Environmental Impairment Liability (EIL) policy. These are policies that can be used to respond to the final reuse or redevelopment of Brownfield sites. This policy can be designed to protect an owner/developer from unknown contamination and related liability issues that might arise during the ownership, cleanup, redevelopment, construction and operational phases of a project.

The second type of product is called a Contractor Pollution Liability (CPL) policy. These are policies that respond to claims against contractors for pollution events that they cause or they exacerbate. The policy can be purchased either by the contractor or by a site owner/developer for the contractors that are working at their site.

For more information brownfields, or examples of claims at brownfields sites, contact us.


Recent Success Stories

  • $3M Glass contractor purchased a $2M/$2M CPL policy for $6,546.
  • $1M Salt water disposal well purchased a $2M/$4M EIL policy for $9,045.
  • A 28 mile pipeline owner/operator purchased a $10M/$10M EIL policy for $40,000.
  • $3M Energy “Landman” purchased a $1M/$2M SPL/E&O policy for $13,990.
  • $2.5M Catalyst handling contractor purchased GL/CPL/E&O ($1M/$2M), Auto ($1M), and $5M Excess policy for a total of $61,991.
  • $18M Non-destructive pipeline testing contractor purchased GL/CPL/E&O/Auto and a $10M Excess policy for $892,144.
  • $400k Electrical contractor purchased a $5M/$5M CPL project policy with 3 years extended completed ops for $8,880.
  • $1M Medical waste hauler purchased GL/CPL/E&O/Auto/Workers Comp ($1M/$2M) and an Excess policy for a total of $43,130.
  • Two commercial office buildings purchased a $1M/$1M EIL policy for $12,100. Coverage includes existing and new pollution conditions.


The Summit: Indoor Air Quality Issue

Beacon Hill’s quarterly publication, The Summit captures the discussion and analysis of important topics in the environmental and energy insurance marketplace. Read the latest issue, focused on Indoor Air Quality.