Challenge

A portion of the site selected for a multi-phased mixed residential- and commercial-use development project in Florida was located over a closed landfill. Adjacent land had undergone closure for groundwater contamination. Yet the developer’s long-term land lease insurance requirements contained only one pollution mandate: mold coverage for completed buildings.

Reviewing the lease, however, Hylant’s environmental risk advisor discovered that the developer was contractually responsible for pollution conditions resulting from the site's development.

Solution

Several uninsured pollution exposures related to this project potentially existed, such as the disturbance of existing contaminants, government-imposed higher pollution remediation standards, or the discovery of previously unknown pollution conditions. Hylant designed an insurance program to protect the developer from these exposures. It consisted of two policies. The first was an owner-controlled contractors pollution liability policy. This policy would protect the developer in the form of clean-up should any contractors performing work on the site exacerbate a known pollution condition or create a new one. All contractors, regardless of their operations, would be insured simply by participating in the project.

The second was a site-specific pollution liability policy. It provided protection for the actual parcel of land and the newly completed buildings. This policy offered several layers of protection, including third-party coverage for historical or new conditions, government-mandated re-opener coverage and the required mold coverage for the newly completed buildings.

Always work with an insurance consultant who looks beyond mandatory insurance specifications and understands how to protect your business thoroughly.