or improved technology, employee skill
levels and experience, supply chains and
clients. This even includes products and
services — each time the insured adds or
even modifies a product or service, a fresh
risk can be added to the business. Consequently, a process must be in place where
the insured reviews and updates the risk
assessment on an ongoing basis.
Uninsured pollution exposures
While oil and chemical companies are
typically forward thinking when it comes
to pollution exposures, many other companies unknowingly have uninsured
pollution exposures. What’s more, it is
possible there are literally thousands of
companies exposed and unaware of the
significant financial risks they face.
While it is impossible for a risk analyst
to know if a company is at risk without
reading the liability insurance policy,
here are 10 situations to help identify potential pollution-related exposures.
1. An air compressor fails and the operating hydraulic fluid leaks, contaminating
a property or causing bodily injury to a
2. An ammonia refrigeration system
leaks, disrupting your operations or those
of a third-party facility, causing a shut down.
3. A facility adjacent to the insured’s
plant has a chemical leak, causing the
company to shut down for several weeks
until the EPA deems it safe for employees
to return to work.
4. A product is ingested, causing a bodily injury or hypersensitivity allegation.
5. A product “contaminates” another’s
product or manufacturing equipment.
6. Process wastewater runs into a
7. A fire at the insured’s facility creates
smoke and a terrible odor, causing the
surrounding residential neighborhood to
allege impairment and the filing of multiple lawsuits against the insured.
8. Dust released from a cyclonic collecting tower causes alleged bodily injury
to a third party as well as extensive damage to your property. The EPA also mandates a cessation of operations during the
cleanup process, which severely disrupts
an insured’srevenue stream.
9. A residential facility or nursing
home fields complaints of mold or Le-gionella, which leads to lawsuits alleging
bodily injury, the shutdown of the facility,
and lost profits, rents and reputation.
10. Paint, or some other type of liquid
substance (pollutant), runs off the insured’s
facility into a nearby drain or stream.
Being aware of the risks allows owners to employ strategies to mitigate their
impact and recover more quickly after a
disaster. A strong risk management program considers a wide variety of dangers and solutions to prevent or alleviate
Brian Heun ( email@example.com ) is
the sales and relationship manager and a
partner at KMRD Partners, Inc., a nationally
recognized risk and human capital
management consulting and insurance
brokerage firm located in the Philadelphia
region and serving clients worldwide.
...it is possible there are literally
thousands of companies exposed
and unaware of the significant
financial risks they face.
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