By: Maydelis Torres, August 17, 2015
The recent outbreak of legionella in New York should cause owners of commercial/habitational and industrial properties to reassess exposures at their facilities.  When assessing this exposure, we are often inclined to only consider pollution coverage related to the healthcare or hospitality industries where we typically see legionella cases in the news.  The Bellevue Stratford Hotel in Philadelphia in the mid-1970s during the Legionnaires Convention, brought legionella to our attention and recent deaths at hotels in Florida and in Maryland remind us that the exposure is prevalent at these types of locations.
Consider this – included among the locations impacted in New York were a shopping plaza, an office building  and a manufacturer.  Ninety percent (90%) of all infections are caused by Legionella pneumophila, which is a bacteria that has the potential to grow in any HVAC cooling system.  The cost of remediating those systems including the business impact to your facility can reach seven figures.  The exposure to third parties exacerbates and increases the financial liability substantially.  Pollution coverage is most likely excluded under your property policy (Total Pollution Exclusion), and may include additional exclusions for mold/microbial matter, fungi and bacteria.  Under the General Liability, most polices include either a total pollution exclusion or will likely specifically exclude mold and as a result coverage for such a pollution event would not be covered unless you purchased a premises pollution legal liability policy with appropriate coverage extensions.
Pollution conditions are typically  defined as the actual or alleged discharge, dispersal, release, escape, migration, seepage or illicit abandonment of any solid, liquid, gaseous or thermal irritant, contaminant or pollutant.  Pollution Conditions very often include the presence of legionella pneumophilia and microbial matter on, at or within any structures at the covered location.
Coverage is available to address those concerns via Pollution Legal Liability policies, which can provide coverage for bodily injury and property damage related to the pollution event.  Coverage can also be secured for business interruption caused by an outbreak and remediation expenses for cleaning up the impacted facility.
Take the time educate your insureds on this important topic and contact your New Day Consultant to learn more.