Indoor air quality exposures are costly and can pose significant liability that your general liability insurance policy may not cover.

Financial losses associated with indoor air quality can be costly. People spend 90 percent of their time indoors and are becoming more aware of environmental illnesses posed by poor air quality or sick building syndrome. Even the Environmental Protection Agency paid a $950,000 settlement as a result of poor air quality in its headquarters.

Indoor air quality (IAQ) should be foremost in every building owner and manager’s mind. IAQ is receiving increased attention by media, health professionals, the insurance industry, and state and federal regulatory agencies.

Overlooking IAQ or failing to properly maintain a building and its operations can result in costly cleanup or corrective measures, claims against the property owners and lengthy litigation.

Concerns And Symptoms
IAQ concerns typically include general discomfort caused by the actual or perceived condition of the building. Physical symptoms caused by air quality hazards include irritated eyes, headaches, drowsiness, respiratory irritation, dizziness and burning irritations, to more intense cases of asthma, lung disease, cancer, chronic fatigue and Legionnaire’s disease.

Causes Of Poor Indoor Air Quality
Indoor air quality can be adversely affected by energy conservation efforts that reduce the amount of fresh air in an office. Indoor air contamination can result from carpeting, glues, building materials, and other furnishings. The number of building inhabitants and the amount of office equipment also contribute to poor IAQ.

Well-known causes of sick building syndrome include ventilation system deficiencies, microbiological contaminant buildup in building systems, problems related to improper temperature and humidity conditions and carbon monoxide intrusion.

In assessing a building’s air quality, however, it also is important to remember other potential air quality exposures to quantify and manage potential liability risks that can result in a financial loss for a building owner. For instance:

• Asbestos: A tenant or builder who unknowingly disturbs asbestos could experience burning sensations of the eyes, nose and lungs
• Lead paint: Can become air-borne as dust during renovations or other activities
• Hazards that enter building due to activities of neighboring tenants, e.g., chemical vapors entering your building’s air intake ducts
• Contractor activity, ranging from painting to removing lead paint and asbestos. A painting contractor who does not take the proper measures to control fumes can pose a risk to tenants

Any of these exposures could result in business interruption and cleanup costs.

Controlling Hazards
Many precautions used to control hazards are often inexpensive. Controlling the air quality of buildings demands an integrated risk management approach, including:

• A regular, thorough air quality assessment performed by a qualified indoor air specialist
• Implementing risk controls for activities that could disrupt air quality
• Listening to tenants’ concerns and taking action
• Educating tenants on how their activities can affect other tenants

Do You Have Insurance Gaps?
Even if you’ve taken precautions, you still could face IAQ liability. Don’t wait until you’re in the courtroom to debate liability issues. It’s important to understand the reliability of insurance coverages in instances of air quality claims. Most general liability insurers deny indoor air quality claims based on the pollution exclusion in general liability policies.

The absolute pollution exclusion in most general liability policies protects insurance carriers from potential losses associated with long-term or gradual pollution exposures such as years of waste dumping, chemical discharges, and now, some argue, indoor air quality, by restricting coverage to certain pollution causing events.

The pollution exclusion in standard general liability policies leaves many property owners with a gaping hole in their insurance coverage. To fill that hole and meet their environmental compliance and risk management requirements, many property owners have specific pollution insurance policies to cover exposures, such as indoor air quality claims from tenants.

XL Environmental Can Help
XL Environmental's underwriting Pollution and Remediation Legal Liability (PARLL) policy provides loss, remediation expense and associated legal defense expense coverage for sudden and gradual pollution conditions at or emanating from covered locations.

XL Environmental Risk Control can also assist property owners in addressing IAQ issues. Our staff of qualified industrial hygienists and indoor air quality field specialists can provide services that include IAQ surveys and implementation of the proper engineering controls to reduce indoor concentrations of pollutants through properly designed ventilation, air treatment and pollutant source control.

The above policy description is neither a complete description nor a complete list of all terms, conditions and exclusions, and only the provisions of a specific policy have legal effect. Certain terms used in the above description are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage.

XL Environmental issues policies through Greenwich Insurance Company, Indian Harbor Insurance Company and XL Specialty Insurance Company.

Common Causes Of Poor Indoor Air Quality
Ventilation. Providing ventilation that complies with the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards is important. Standards vary depending on the type of operations and building. Depending on activities performed in the work area and the occupancy rate, ASHRAE standards set specific requirements for the amount of outside air (cubic feet per minute) that must be brought into the building to maintain adequate indoor air quality.

Chemical contaminants from indoor sources frequently contribute to IAQ concerns. Contaminants may include disinfecting compounds such as glutaraldehyde, adhesives, upholstery, manufactured wood products, copy machines, pesticides, and cleaning agents. Many indoor pollution liability claims result from inadequate controls on contractor activities and hazardous materials during building renovations.

Outdoor air that enters a building can be a source of IAQ concerns. Motor vehicle exhaust, plumbing vents, laboratory exhausts, and incinerator or boiler stack emissions can enter the building through poorly located air intake vents, windows and other openings.

Biological contaminants are a significant source of IAQ concerns. Biological contaminants can breed in stagnant water and accumulate in ducts, humidifiers drain pans or other places where water collects. Insect or bird droppings also can be a source of biological contaminants. Symptoms related to biological contaminant exposure frequently include cough, chest tightness, fever, chills, muscle aches and allergic reactions. Legionella, a known indoor air bacteria, has been associated with cooling tower mists, and has caused both Legionnaire’s Disease and Pontiac Fever.