News From Beacon Hill – July 2015

Insured Spotlight: Property Managers

Property managers face a number of potential environmental liabilities in their day-to-day operations. Although these liabilities may be clearly allocated in contracts among property managers and building owners, tenants, or contractors working at building complexes―under environmental regulations, any or all of these entities could be sued or held responsible in the event of an environmental incident.

Property managers are responsible for a number of key areas from which environmental concerns may stem. These include:


  • – Property siting/historical use
  • – Pollutants coming onto managed properties from neighboring properties
  • – Responsibility for waterfront locations vulnerable to spills and discharges from property activities
  • – Business interruption as a result of a pollution incident that includes loss of rents


  • – Spills or leaks of cleaning chemicals
  • – Pools/saunas/hot tubs susceptible to mold growth or maintenance chemical spills


  • – Indoor air quality – building component off-gassing (ex. Carpet glue fumes, pain emissions, wood adhesive fumes, etc.). Mold and Legionella may also be a concern.
  • – Grounds keeping/landscaping chemical run-off
  • – Kitchens with grease traps that may fail or overflow


  • – Carbon monoxide from boiler rooms, furnaces, or water heaters
  • – Fuel tanks (above and belowground)

Reputational/Public Relations

  • – Because many building owners are now touting that their buildings are “green” and “environmentally friendly”, if they have an environmental incident, and it stems from the activities of the property manager, the management company’s reputation could be at risk more than ever before.

Every property is unique and will have its own set of challenges. Whether it is garden apartments, condominiums, commercial mixed use, retail, or an industrial property, the potential exposures can have a big impact. Insurance products that property managers need to consider include: Contractors Pollution Liability, Premises Pollution Liability, and Storage Tank Liability. There are also a number of endorsements that can be added to these coverages to respond to the unique environmental exposures that each type of location faces.

To request more information about coverage for property managers, send us a request.


The Lazy, Hazy, Polluted Days of Summer

With April showers increasing stormwater runoff and Mays’ blooming flowers (along with mold), what does June have in store for us? Summer can bring more than air inversions which can cause a haze that makes it hard to breathe in many major metropolitan areas. This time of year is rife with conditions and activities that have the potential for pollution events. Read the complete article.


Recent Success Story

Cell phone recycling facility purchased a 3-year EIL policy, including NODS and TPL ($2M/$2M limits) for $8,408.

$18M Insulation contractor purchased CPL, including TPL, NODS, and Mold ($1M/$1M limit) for $9,011.

$25 Distributor purchased GL, CPL, Products Pollution, Hired and Non-Owned Auto, and Sudden and Accidental EIL for $43,084.

$5M Salt water hauler purchased a $1M/$2M GL/CPL/Auto policy for $76,581.

$3.4M Safety and training contractor purchased GL/CPL/E&O and a $1M Excess policy for $23,800.

Timber land operations (3 locations) purchased EIL and CPL for $10,000.

$30M Soil excavation contractor purchased a $1M/$1M CPL policy for $10,535.

$10M Refinery (mechanical and scaffolding contractor) purchased a GL policy ($1M) and Excess policy ($5M) for a total of $103,000.

$4.1M Waste transportation company purchased GL, CPL, E&O, Excess ($5M), and Auto ($1M) for a total of $107,070. Coverage includes Mold, TPL, and NODS.


New! Beacon Hill has launched an environmental insurance publication

The Summit captures the discussion and analysis of important topics in the environmental and energy insurance marketplace. Read the first issue.