In response to the dramatic increase in pollution claims, many insurance companies have completely removed pollution coverage from their policies. This valuable protection is now available through one of our insurance companies, the Community Association Underwriters (CAU).
Environmental Impairment Liability provides protection against the following risks of financial loss:
- Bodily injury caused by pollution conditions
- Property Damage
- Remediation Expenses
- Defense Costs
You may not think that your association has an exposure, but all associations do. Consider these situations:
- While excavating to make pipe repairs, a previously unknown underground storage tank is discovered. Investigation reveals that the oil leaking from this tank has contaminated the soil and groundwater onsite and has migrated to a neighboring community. The preliminary studies to determine the extent of contamination cost over $30,000. The cleanup cost exceeds over $175,000.
- An association routinely applies phosphorous rich fertilizer to the community’s lawn. During a heavy rain, the phosphorous is washed into a pond on a neighboring property. This overdose of phosphorous nutrients in the pond causes an algae bloom and severely harms the aquatic life. Property damage and clean up costs exceed $55,000