ARMR.Network, LLC Newsletter                                                            July 1,  2010

New Business from the EPA

EPA Delays Enforcement of Lead Safe Work Practices Rule

 

The Environmental Protection Agency issued a memorandum to extend the deadline for contractors to enroll in required lead safe work practices training classes to Sept. 30, with the completion date moved back to Dec. 31, according to a press release from Sen. Susan Collins, one of the senators who pushed to amend the Fiscal Year 2010 Emergency Supplemental Appropriations bill to include the extensions. The deadline to become certified had been April 22, 2010.

The new regulations require contractors who perform work in residential properties built before 1978 to be EPA certified for lead paint abatement or be fined up to $37,500 per violation per day. But many states found there were not enough trainers and classes to accommodate the thousands of contractors needing certification. By some estimates the new rules affected 430,000+ contractors, on April 22nd  200,000 were yet to be certified.

The EPA has also agreed to work to provide additional trainers in areas that need them.

Insurance and risk management concerns:
The new lead  safe work practices rules actually have the net effect if increasing the chances that a contractor or land lord will be sued for lead related losses.

Although the trained contractors will be working safer, increased awareness by the property owners and occupants of lead hazards actually increases the net risk picture for these stakeholders.

Owners need to hire only lead safe certified contractors or they like the contractors also face fines of  $37,500 per violation.

General Liability policies have pollution exclusions and many have separate lead exclusions for a belt and suspenders approach by insurance companies to avoid these claims.

All contractors now need a Contractors Pollution Liability insurance policy which is are available to cover losses from exposure to lead, asbestos silica, mold, bacteria and a wide range of other “pollutants” arising from a contractors operations.  

Site owner need Real Estate Environmental Liability  Insurance amended to  specifically cover mold as a pollutant. In this policy property owners fill the coverage gaps created by pollution , mold and lead exclusions  in both their property and liability insurance policy.

The REEL policy can also  insure loss of rents and the build back of contaminated property.

ARMR.Network offers CPL policies with minimum premiums as low as $2500. Real estate environmental liability policies have $7500 minimum premiums.

We can assist in coverage analysis and environmental insurance program designs.

 Call our offices at 608-836-9590 for a premium estimate on any type of environmental loss exposure.

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