Legionnaires’ Disease and Insurance
As the number of reported Legionella infections has increased, so has the number of lawsuits and claims. In reaction to the growing number of claims made asserting liability for illnesses related to exposure to Other Opportunistic Premise Plumbing Pathogens (OPPPs) and the higher standard of care that must be met to defend against allegations of negligence, many insurers are implementing increasingly stringent underwriting criteria while also limiting coverage. The problems faced by facility owners and managers from facility-associated OPPP disease are amplified by the fact that many of the costs of OPPP claims are now excluded from coverage. This means the facility has to bear the risk of catastrophic, uninsured losses.
Although environmental policies may provide some coverage for Legionella, the only policy that provides comprehensive, affirmative, primary coverage for costs resulting from OPPP-disease (including Legionnaires’ disease) is the OPPP insurance policy offered by Great American Insurance Group (Great American). The Great American program is made possible by combining comprehensive, primary insurance coverage with proven water management programs.
Great American and VERTEX
Great American Insurance Group has teamed with The Vertex Companies, Inc. (VERTEX) to offer an integrated risk management program that combines comprehensive, sustainable, regulation-compliant water management programs with primary insurance that covers risks associated with Legionnaires’ disease and other OPPP infections. Documented implementation of VERTEX’s water management programs demonstrates due care and mitigates the risk of facility-acquired disease, while Great American’s insurance policies provide coverage for response, recovery, defense and indemnity for third-party damages should any claims arise. This integrated risk management program is unique in its combining control and mitigation of the risk of Legionnaires’ disease and other OPPP infections with comprehensive, primary insurance coverage.
- Program Limits: Up to $1.5 million for each pollution condition with higher limits available
- Term: One Year
- Premium: $1,000 minimum (single-year policy)
- Locations: US and Canada
Great American Insurance Group is an A.M. Best “A+” rated carrier with a dynamic, innovative environmental insurance division. Great American’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. Based in Cincinnati, Ohio, the operations of Great American Insurance Group are engaged primarily in property and casualty insurance, focusing on specialty commercial products for businesses, and in the sale of traditional fixed and fixed-indexed annuities in the retail, financial institutions, registered investment advisors and education markets. Great American Insurance Company has received an “A” (Excellent) or higher rating from the A.M. Best Company for more than 100 years (most recent rating evaluation of “A+” (Superior) affirmed August 17, 2018). The members of Great American Insurance Group are subsidiaries of American Financial Group, Inc. (AFG), also based in Cincinnati, Ohio. AFG’s common stock is listed and traded on the New York Stock Exchange under the symbol AFG.
Great American Insurance Group’s Environmental Division provides a comprehensive portfolio of environmental insurance products to a broad array of industries. All products can be customized to address the specific risks and exposures of the client. Products include: Premises Environmental Liability Insurance, Indoor Air Quality and Mold Liability Insurance, Contracting Services Environmental Liability Insurance, Contracting Services Project Specific Environmental Liability Insurance, Professional and Contracting Services Environmental Liability Insurance, Excess Environmental Liability Insurance, and Closure and Post-Closure Financial Assurance. Environmental insurance products are written by one of Great American Insurance Group’s surplus lines insurance subsidiaries. Surplus lines insurance may not be available in all jurisdictions. This is not intended as a solicitation or offer to sell an insurance product in a jurisdiction in which the solicitation, offer, sale or purchase thereof would be unlawful. Coverage description is summarized. Refer to the actual policy for a full description of applicable terms, limits and exclusions.
VERTEX is a global, full-service construction, environmental and engineering services firm with more than 400 professionals in more than 25 offices across North America. VERTEX has provided advanced program and project management services to facility owners for more than 20 years. We have managed diverse projects for tens of thousands of buildings, often under challenging conditions and tight deadlines, delivering consistently high-quality results, on time and on budget. The value of our deliverables is enhanced by thorough documentation and rigorous quality control.
In 2015, VERTEX formed a specialized practice in the safe, regulation-compliant management of building water systems. With the scientific and technical guidance of Gordon & Rosenblatt, internationally renowned experts in water and public health, VERTEX has helped leading hospital systems, long term care facilities, senior housing facilities and others develop and implement effective, sustainable water management programs.
To learn more about Integrated Risk Management of Legionnaires’ Disease and Infections by Other Opportunistic Premise Plumbing Pathogens or to speak with an Environmental Expert, call 888.298.5162 or submit an inquiry.