Environmental Liability Solutions - Alliant Insurance Services, Inc.

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Real Estate Environmental Liability Solutions

Environmental liabilities can be a challenge for any industry, but especially in the real estate business, and potential for an adverse financial consequence because of a pollution condition can be high—whether it is the commercial, residential, development, management, investment, or lending side of the business.

To provide an environmental risk management solution for the real estate industry, Alliant Insurance Services created the Site Pollution Incident Legal Liability program, which targets fixed facilities with environmental exposures. The program is available through Professional Real Estate Insurance Solutions & Management (PRISM), the national real estate practice of Alliant.

Along with below-market pricing and a streamlined underwriting and submission process, superior coverages are available exclusively through the program for:

On-site and off-site clean-up
New or pre-existing pollution conditions
Third-party bodily injury and property damage
Blanket location
Indoor air quality (including clean-up, restoration, and disinfection)
All related legal defense expense
First-party/third-party transportation coverage
Blanket non-owned disposal site coverage
Business interruption and loss of rents
Storage tank liability (including financial assurance)
Automatic acquisition with pre-determined rates
Coverage for management companies (potential for lawsuits related to contracting services provided)

Identifying Uninsured Real Estate Exposures

Because an uninsured event can have a catastrophic impact on a company’s balance sheet, reputation, and shareholder value, the Alliant team works closely with its clients to identify exposures. The team then recommends and structures an insurance program that not only fits the operational needs of a portfolio but acts as a strategic tool in a buy/sell transaction.

Typical exposures faced by real estate businesses include:

Historical use of property (dry cleaner, service station, industrial, landfill, illicit disposal site)
Indoor air quality (vapor intrusion, mold, Legionella)
Capital improvements (subsurface excavation, expansion)
Acquisition or divestiture
Foreclosure of impacted properties
Loss of rental income or diminution-in-value resulting from a third-party pollution condition
Nuclear, biological, and chemical acts of domestic or foreign terrorism
Use and storage of cleaning and/or maintenance chemicals
Regulatory audits and inspections and resultant violations
Underground storage tanks and transfer lines

Program Highlights

$10,000 minimum premium
$10,000 minimum deductible
$25,000 minimum mold deductible
Full transit coverage
Blanket non-owned disposal site coverage
Full bodily injury, property damage, and remediation expenses for lead/asbestos post-1978 construction
Slot underwritten (i.e., pre-agreed rates per class of construction)
No renewal application needed (warranty statement only)
Automatic acquisition coverage as long as ASTM-compliant Phase I with no recommendations
Five-day deductible for business interruption
Separation date can be moved to date of property purchase as long as Phase I was completed after 2005 and contains no recommendations
Separation dates for clients with existing placements will be held
PRISM endorsement ($1 million limit)

Business interruption and extra expense
Increased cost of construction

PRISM One Call Number
Below-market pricing (roughly 10% off market)
Options for no interest payment plan
10% discount for Leadership in Energy and Environmental Standards (LEED) certified buildings

For more information, contact:

Bill Nellen

(770) 325-6655

The Specialty Leader Since 1925

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Real Estate Environmental Liability Solutions

Identifying Uninsured Real Estate Exposures

Program Highlights

For more information, contact: