Scenario 1:
An office building had a clogged drain, and a staff member used chemicals to unclog the drain, sending noxious fumes through the HVAC system.
RELATED STATS:
- Companies within the building may need to close for the day, losing out on a day’s worth of business.
- There may also be costs associated with hiring professionals to unclog the drain and clean up the fumes.
SOLUTION:
- A Pollution Legal Liability (PLL) Insurance policy would cover the cleanup as well as business interruption losses for the other companies in the building that had to shut down for the day. Learn more
Scenario 2:
A plumber fails to repair a slow drip from a pipe or faucet and that leads to mold growth.
RELATED STAT:
- Claims could be costly, depending on the extent of the leak and if there was any additional damage or injury.
SOLUTION:
- A provision in a Contractors Pollution Liability could cover the cleanup cost from that and any injuries or property damage — provided the policy does not exclude mold. Learn more
Scenario 3:
There was a business that cleans restaurant grease traps and while the vehicle was on the road, the back opened up and the canisters fell out. The spill was cleaned up very quickly and they knew what they needed to do to make sure it did not cause any further damage or enter a waterway, but there was a woman crossing the street who slipped on the grease and fell, and she sustained some substantial injuries from the fall.
RELATED STAT:
- Slip and fall settlements can vary widely depending on the circumstances and extent of injuries but can range from a few thousand to hundreds of thousands of dollars.
SOLUTION:
- Transportation Pollution Liability (TPL) Insurance protects a business when they are transporting something, and it spills and causes a pollution condition. Without TPL Insurance, the business could be held liable for medical expenses associated with the woman’s injuries. Learn more
Scenario 4:
A leak from a retail fuel outlet’s underground storage tank caused groundwater contamination.
RELATED STAT:
- First- and third-party cleanup costs, third-party bodily injury, natural resources damage and other impacts could cost millions of dollars.
SOLUTION:
- Storage Tank Pollution Liability Insurance and/or Premises (Site) Pollution Insurance can help companies pay for cleanup costs, legal defense and more. Learn more
Scenario 5:
Aging underground and above ground storage tanks, combined with increases in severe weather events, pose substantial risks for leaks, spills and contamination.
RELATED STAT:
- There are nearly 550,000 underground storage tanks (USTs) and 600,000 above ground storage tanks (ASTs) in operation in the U.S., and the average age of USTs is about 25 years.
SOLUTION:
- Storage Tank Pollution Liability Insurance provides options for difficult-to-insure tanks over 20 years old. Learn more
Scenario 6:
A university research lab accidentally overheats a chemical, releasing fumes that require evacuation and professional cleanup.
RELATED STAT:
- Costs can include emergency response, cleanup, disposal of hazardous materials, and legal defense — potentially totaling hundreds of thousands of dollars or more.
SOLUTION:
- Pollution Legal Liability (PLL) Insurance can cover cleanup expenses, third-party bodily injuries and property damage, regulatory fines, business interruption, and other costs resulting from accidental pollution events. Learn more
Scenario 7:
A leak from a gas station chain underground storage tank caused groundwater contamination that impacted local businesses, including a Tim Hortons where customers tasted fuel in their beverages.
RELATED STATS:
- Cleanup costs, impacts on local businesses, residential neighbors, environmental damage and other fallout could total millions of dollars.
- Cleanup has continued for more than six months and the extent of the damage is still being investigated.
SOLUTION:
- Storage Tank Pollution Liability Insurance (or more enhanced Premises/Site Pollution Liability) can help companies pay for on- and off-site cleanup costs, third-party bodily injury and property damage claims, legal defense, and more. Learn more
Scenario 8:
RELATED STATS:
- This is an example that water damage is not always caused by weather.
- The National Association of Insurance Commissioners indicates that non-weather-related water damage for commercial properties annually costs insurers around $13 billion.
SOLUTION:
Standard Commercial General Liability policies often exclude or limit pollution claims. Pollution Liability Insurance can cover the costs associated with water damage leading to mold, bacteria and other environmental issues. Learn more
Scenario 9:
A truck transporting plastic pellets crashes on a highway, releasing thousands of pounds of microplastics into nearby roadways, waterways, and surrounding land, creating widespread environmental concerns.
RELATED STAT:
- Cleanup costs can reach hundreds of thousands to millions of dollars, particularly when contamination spreads into waterways and requires complicated remediation efforts.
SOLUTION:
- Environmental Insurance policies can help pay for cleanup costs and third-party environmental damage, while Cargo Insurance and other Transportation Insurance policies can respond to lost cargo and physical damage. Learn more
