Is your childs school at risk ?

Recently, two reports were released that underline the potentially deadly dangers that American students face. Surprisingly for some, these reports were not on gangs of bullies, concealed firearms, inappropriate and/or offensive attire, but instead focused on a largely ignored problem (even as the number of cases continues to multiply)- environmental contamination of school institutions.

First, an Associated Press investigation found that the drinking water at thousands of schools across the country contains unsafe levels of lead, pesticides and dozens of other toxins. Second, the U.S. Environmental Protection Agency (EPA) announced that caulk containing potentially harmful polychlorinated biphenyls (PCBs) that was used in schools in the 1950s through the 1970s and is still installed in buildings, could potentially put students at risk.

Both contaminants are especially dangerous to children and young adults, who are more vulnerable to the effects of these and many other hazardous substances. This group has a much higher risk profile because of their age and close exposure to other students within educational institutions. To most of the population, pollution conditions such as mold, bacterial outbreaks and viral contamination are little more than an annoyance whereas they are potentially devastating to this young population.

Pollution Insurance & Educational Institutions

Educational institutions face some of the most extreme pollution impacts of any type of organization. More often than not, school administrators are not aware that their institution is completely uninsured against these losses. The basic disconnect between insurance and pollution is a lack of understanding of what constitutes a pollution incident.

A contaminant release inside a facility could have devastating--even fatal--effects on students, resulting in significant financial loss from legal actions as well as the costs to cleanup the pollution condition. Pollution, as categorized by insurance companies, is virtually any type of substance released indoors that may cause an adverse reaction to an individual. Therefore, it's apparent that the term "pollution" can include many of the everyday materials we take for granted as being benign incidents covered under a General Liability and/or Property Policy.

As unlikely as it seems, pollution can be sources such as fumes from fresh paint, new nylon carpeting, cleaning chemicals, pesticides or even offensive odors and dust. The most serious incidents of pollution include fungi (mold) spores release of biological and viral matter causing injury or requiring cleanup. The following are some examples to further outline the prevalence of pollution conditions in educational institutions.

Pollution Examples

Legionnaires disease is an ever increasing problem in facilities of all types including school buildings serviced by heating, ventilating and air conditioning equipment. Microbiological growth in drip pans, ductwork, coils, and humidifiers leads to formation of legionella bacteria that disperses into the indoor environment and can have devastating effects on high risk students.

Another example that was previously touched upon is how the recent EPA investigation and report on caulking described how it can disintegrate into particles and vapor containing small amounts of PCBs, which can fall to the ground, coat windowsills and infiltrate a building's ventilation system. Students inhaling these materials would be considered a pollution related incident and holds the potential of having a huge price tag from claims related litigation.

In similar fashion, a student being poisoned by elevated lead levels in drinking water in schools is also considered an environmental based injury. According to data from the EPA, roughly one of every five schools with its own water supply violated the Safe Drinking Water Act in the past decade, which illustrates the sobering prevalence of this type of pollution risk.

In summary, the only way for your insured to protect their educational institution from a class action lawsuit is to help them elect the proper Educational Environmental Liability policy. This new product to market was developed due to the number of growing incidents and provides coverage for these pollution incidents. The following section outlines a number of frequently asked questions that you can prepare before speaking with your insured about this risk that confronts their educational institution(s).

Educational FAQs

What educational institutions are at risk?

All types, including but not limited to: elementary schools, middle schools, high schools, vocational schools, prep schools, boarding schools, private schools, charter schools, religious day schools, colleges and universities.

What are fungi, biological and viral pollution?

This type of pollution occurs when mold spores, biological or viral matter is released into a structure and causes injury or requires cleanup. Some examples are:

Legionella bacteria (the cause of Legionnaires' disease) escapes from the building water supply resulting in injury or death to students Spores are released from mold growing inside walls and hidden areas within structures resulting in injuries and expensive mold cleanups Viral agents accidentally escape into the facility by mishandling of stored medical wastes causing injury and remediation charges

Human to human transmission of disease is not a release of contamination into the indoor environment of the structure and therefore not categorized as pollution.

What about cleanup of pollution and bodily injury?

The Education policy pays for cleanup of contamination as required by a government authority. For example, if mercury were to escape from a medical device the local Board of Health and or Environmental Agency will order a cleanup and trigger coverage under the policy. Coverage for bodily injury is triggered when a claim is made from a pollutant or contaminant based upon the legal liability of the facility and does not require any governmental involvement.

Can we get pollution coverage added to the policies we already have?

No; pollution coverage is a highly specialized type of insurance that is specifically excluded in your insurance policies. Even environmental insurance companies have avoided providing this coverage to the Educational industry.

The Bottom Line

It is important to advise your educational insureds not only about the reality of the pollution risks they face, but equally important that they are uninsured against all pollution claims. The worst mistake the professional insurance agent and broker could make is to ignore the reality of this risk. Reaching out to an appropriately tenured environmental insurance specialist is not only appropriate but essential to the interests of the educational institution and the insurance professional alike.