First let’s look at three fact-based scenarios related to pollution liability that have actually occurred at automotive-related businesses:
Costs associated with pollution incidents
Clean up and remediation costs can run into the hundreds of thousand of dollars. Bear in mind, these costs do not include possible fines levied for non-compliance of local, state, and federal regulations. In addition, have you considered the cost of Natural Resource Damages? The effect of a pollution incident on your business can be even more profound from a public relations standpoint. Just think of other large corporations who have been forever associated with major environmental disasters.
What can you do?
Perform an audit of your facility and thoroughly analyze your pollution exposure:
Other practical control measures
Visit these sites for additional help and resource material:
If you’d like to discuss your pollution liability exposure, or to find out if you are covered under your current policy, contact your local Zurich account executive.
To request a free copy of our “Risk Topic” titled “Environmental Self-Assessment,” contact the Risk Engineering Department at 800-821-7803. Zurich also recommends talking to members of any industry associations you might belong to about their experiences with pollution exposures.
This Loss Prevention Bulletin was compiled from sources believed to be reliable for informational purposes only. No information contained herein is intended to constitute legal advice and accordingly, you should consult your own qualified legal counsel to address your particular circumstances and needs. Zurich is not providing legal advice and assumes no liability concerning the information set forth in this bulletin.
1 The US EPA finalized the SPCC Rule in November 2009 and has established a compliance deadline of November 10, 2010. The SPCC Rule outlines requirements for prevention of, preparedness for, and response to oil discharges as part of the Oil Pollution Prevention regulation (40 CFR part 112). Regulated facilities must develop and implement SPCC Plans that establish procedures and equipment requirements to help prevent oil discharges from reaching navigable waters or adjoining shorelines.
Automotive-related facilities are subject to the rule if they maintain an above ground oil storage capacity greater than 1,320 U.S. gallons, or completely buried oil storage capacity greater than 42,000 U.S. gallons.
This bulletin in pdf format:
09-3800 LC-152G (12/09) ©2009 Zurich American Insurance CompanyNote: this web page includes attachments which are stored in adobe portable document format (PDF). You will need Adobe Acrobat Reader version 4 or higher to view these attachments. If you do not already have the reader installed, please click on the Adobe Acrobat icon to the left to download it.