Why Senior Living Communities Need Environmental Liability Insurance

Senior LivingWhen you think of environmental issues, the manufacturing or oil and gas industries likely come to mind, but chemical leaks and pollutants come from a variety of sources in senior living communities, especially as buildings and their systems continue to age. Environmental exposures that have been known to affect the senior living industry include:

  • Bacteria in the water system that lead to Legionnaires Disease
  • Mold
  • Leaks in diesel storage tanks for (required) backup generators
  • Bodily fluids or infectious viruses
  • Indoor air quality

Unfortunately there is a common misconception about the coverage details of a general liability policy. Most standard general liability policies exclude pollution and environmental losses or if they are included, very low sub-limits apply.  If someone were to get sick or even die from a pollutant in your building, a $25,000 or $50,000 sub-limit isn’t going to cover much.  Those claims can reach in the millions of dollars and without the right, or adequate, coverage, you will be responsible for paying those damages out of pocket.

Environmental, or Pollution, Liability Insurance can fill that gap in coverage. In addition to bodily injury coverage, an environmental liability policy covers property damage, clean up and legal expenses and business interruption losses resulting from contamination incidents.

Do you know if your community is adequately covered in the event of an environmental impairment? AssuredPartners NL’s senior living experts can review and analyze your current general liability policy and help implement a risk management and safety procedures with your staff.  To learn more, contact an AssuredPartners NL Senior Living Agent.

Source: Insurance Information Institute

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