Integrated Risk Management Solutions From XL Environmental

The following case histories illustrate how XL Environmental products, risk control services and claims administration services are effectively addressing the risk management needs of colleges and universities.

XL Environmental Claims Contains Costs Of Cleaning Up Unknown Contamination

A large university decided to place a new building on the site of a former parking lot. During excavation, petroleum hydrocarbon contamination was discovered. The university had no idea of the historical use of the area. Upon reporting the contamination, XL Environmental Claims Administrators sent an environmental consultant to the university to review the problem and help the university choose an environmental consultant to investigate and remediate the contamination. XL Environmental Claims negotiated with the state regarding necessary cleanup levels and disposal options. Although the claim will exceed $300,000, XL Environmental Claims was able to help contain the cleanup costs by effectively choosing the disposal site location.

XL Risk Control Assistance

While performing a survey of a university, the XL Risk Control consultant made several recommendations regarding chemical storage and waste minimization. The university asked XL Risk Control to assist with the development of a waste minimization plan. Upon implementing the recommendations, the university was able to decrease their overall environmental exposures.

Claims Studies Involving Colleges And Universities

The following examples demonstrate just some of the many ways in which colleges and universities can incur environmental liabilities.

Costly Cleanup

A large Midwestern university disposed of its science lab wastes in a 53-year-old, 20,000-gallon underground storage tank. The underground tank ruptured and contaminated the soil, the private wells and the groundwater that flowed into a nearby reservoir. Several third parties sued the university, with claims totaling $450,000. In addition, costs to clean up the reservoir amounted to $1.1 million.

Filter Failure Causes Fumes

In the chemistry lab of a small Southern college, experiments were being conducted under an old hood. The hood filters failed and released toxic fumes into the community-several residents had to be evacuated and others rushed to the hospital. The college was sued for several third party claims, along with a $215,000 property damage claim for contingent business loss.

Lab Wastes Pollute Water

A university in New England was discharging liquid lab waste to the campus wastewater treatment plant. When the plant failed, toxic liquids contaminated the publicly owned treatment works (POTW), forcing its closure. The university was charged with the $65,000 environmental cleanup and contingent business loss that resulted from contamination of the POTW.

Underground Tank Ruptures

While constructing a new sports stadium at a Western university, a contractor ruptured two abandoned 10,000-gallon underground storage tanks full of gasoline and diesel fuels. Since the land was donated to the university by a private company and the contractor did not have pollution insurance, the university was charged $200,000 for the environmental cleanup.

Spill Spreads Mercury Contamination

A large university in Ohio contracted plumbing work on one of its science labs. While dismantling laboratory piping, the contractor discovered an existing mercury spill that resulted in mercury contamination throughout the building. Costs to clean up the contamination and restore the building to its original condition were $350,000.

The examples above are intended to illustrate the wide variety of environmental exposures faced by institutions, business and industry and the many ways in which those exposures can arise. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the above examples. Please refer to the individual policy forms for specific coverage details.

Common Environmental Exposures For Colleges And Universities

Some common environmental exposures faced by colleges and universities include:

• Absence of comprehensive and coordinated spill control plans
• Acidic laboratory, x-ray and maintenance chemicals corroding on-site and off-site sewer pipes
• Exposed asbestos
• Historical disposal practices for hazardous, infectious and radioactive waste
• Improper maintenance of laboratory hood filters
• Improper maintenance of PCB-containing electrical equipment
• Inadequate backflow prevention devices to keep harmful chemicals and microorganisms from siphoning back into the municipal water supply
• Incomplete records of former on-site industrial/commercial activities
• Insufficient chemical pretreatment of wastewater discharge to municipal wastewater treatment plant
• Lack of an overall hazardous waste and/or infectious waste management program
• Lack of an underground tank management program
• Mold and bacteria in air conditioning systems causing sick building syndrome
• Trustee property donated to colleges and universities with unknown pollution conditions

This list is intended only to outline some typical environmental exposures of colleges and universities and is not an all-inclusive list.