Environmental Consultants Claim Scenarios

An environmental consultant provided plans and specifications for the installation of monitoring wells at a contaminated facility. Contamination had seeped from the ground surface into a shallow aquifer. Following installation of monitoring wells, sampling showed evidence of contamination in both the shallow aquifer and in a lower lying aquifer. The facility owner filed an insurance claim against the consultant, alleging that well placement (location and depth) was responsible for the cross-contamination of the lower lying aquifer. The settlement amounted to $250,000.

An environmental consultant performed a Phase I Site Assessment at a site that had been used previously for industrial purposes. The consultant submitted a report stating that negligible contamination had been found. The property was subsequently sold. During excavation, an unregistered leaking underground storage tank (UST) was discovered on the site. The property developer sued the consultant for $1.2 million for remediation expenses, lost profits, and diminution in value.

A consultant failed to delineate wetlands on property which was to be developed into a new regional landfill. As a result, the landfill had to be re-engineered, thus delaying its opening. The settlement amounted to $7 million.

These claims examples have been provided to us by our insurance companies over the years. These represent actual environmental claims they have seen. While the coverages we offer are designed to address these general issues, we make no guarantee or warranty that any individual policy we offer will respond to all issues as described herein. Please refer to the actual policy wording in each offered form to determine coverage applicability and acceptability.