For Immediate Release

BUSINESSES VULNERABLE TO ENVIRONMENTAL HAZARDS OF NATURALLY OCCURRING SUBSTANCES, SAYS NEW DAY UNDERWRITING  

BORDENTOWN, NJ, March 22 –   When unearthing naturally occurring hazardous substances, many businesses are unexpectedly exposing themselves to environmental liabilities that they may not prepared to handle, according to New Day Underwriting Managers Vice President John Heft.  Mr. Heft spoke at California Construction and Industrial Materials Association (CalCIMA) education conference held in Napa, CA.  

“Silica, mercury, arsenic, pyrite, and probably the most prevalent, asbestos all occur naturally in our environment.  Despite their origins, these substances have very hazardous properties,” Mr. Heft explained, outlining the potential risks associated with them and how businesses come into contact with these substances, including: 

o        Arsenic:  Found in soils and unearthed during such activities as real estate development and mining, this material has been linked to various forms of cancer.

o        Mercury: Considered a neurotoxin, mercury is found in natural processes but also results from the burning of fossil fuels.

o        Pyrite: Also called iron sulfide or “Fool’s Gold,” pyrite is often uncovered in mining operations.

o        Silica: Associated with lung diseases, silica is found in quartz and other minerals.

o        Asbestos:  Found in various minerals, asbestos has been linked to lung disease. 

“Real Estate and construction businesses – in their day-to-day excavation, building and development activities – can find themselves susceptible to significant environmental liability without the appropriate insurance protection to properly handle it,” said Mr. Heft. 

“Environmental insurance is a risk management strategy to address these risks,”  Mr. Heft explained, “However, in the contractors pollution liability marketplace, there are several insurance policy situation in which naturally occurring hazards may be excluded, making a complex issue even more complex.” 

According to Mr. Heft, some are fairly recognizable as straightforward exclusions in the insurance policy. “Others are more cryptic—coming in the definition of pollutants or pollution conditions,” he noted.  He cited specific wording in a policy which reads:  “Pollution conditions means the emission, discharge, dispersal, release or escape of pollutants, provided they are not naturally occurring.” 

With 75 different Contractors’ Pollution Liability policy forms available from approximately 20 different insurance companies, Mr. Heft admitted that navigating all the information and resources available can be difficult alone.  “With the help of a specialty intermediary to handle insurance details and authoritative resources, like the Association of American Geologists, for guidance on handling these substances, business can minimize their risks,” said Mr. Heft.

 New Day Underwriting Managers LLC is a specialty resource for agents and brokers, assisting them and their clients find appropriate, high-quality environmental and construction related professional liability insurance coverages.  The company offers agents and brokers single-point access to an ample portfolio of products and services provided by the nation’s largest environmental and professional liability insurance providers. More information about the company is available on their website at www.newdayunderwriting.com.

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