Educational facilities confront environmental liability every day, whether known or not. Specifically, most types of educational facilities or properties, be they primary or secondary, public or private, face environmental exposures in three major areas: on-site operations, transportation of supplies and waste, and disposal of waste. Each area must be explored to identify risks that may expose the organization to environmental liability.
One of the biggest operational risks involves indoor air quality created by microbial growth of mold, bacteria, and even viruses. Not managing or addressing this growth when identified can lead to what we call "sick building syndrome." In fact, a recent review of the book of insureds at RT Specialty's Environmental and Construction Professional Practice between 2020 and 2021 found that indoor air quality was the leading cause of pollution legal liability insurance claims among the education-related policies purchased. This was closely followed by shutdowns and incidents involving spills on the premises, as well as contractors uncovering or inadvertently hitting existing structures like utility lines, tanks, and so forth.
Whether the result of fungal or mold growth (Aspergillus and Stachybotrys are the usual suspects) in the building or ventilation system, or bacterial build-up (Legionella pneumophila is the typical culprit) in the air conditioning or drinking water systems, when this growth becomes widespread, the result is typically not good. For those not familiar with Legionella pneumophila, between 5 and 30 percent of those who contract this bacterium that causes Legionnaires' disease die, according to the US Centers for Disease Control.
Many schools have experienced some sort of scare after the COVID-19 pandemic. As many facilities began to reopen, they experienced the presence of Legionella pneumophila in their water systems due to the extended shutdown period. One specific example occurred in late 2021 at Duke University, where about 84 people had to be tested and treated for suspected Legionnaires' disease. The source was identified as a training room linked to a basketball camp that ran in mid-August 2021. After experiencing flu-like symptoms such as fever, fatigue, nausea, and respiratory distress, the 84 people were treated for Legionnaires' disease and subsequently recovered with limited long-term impact on their health. Although the outbreak occurred at a summer sports camp, no students were reported to have been exposed.
Other risks that can expose educational properties to environmental liability include the following.
Hazardous chemicals (e.g., cleaning chemicals, fuels, lubricants, lab chemicals and waste, pesticides/herbicides, paints, solvents, or volatile organic compounds) can be released indoors or outdoors via improper storage, inadequate containment, or vandalism.
The existence of lead (paint and pipes), asbestos (insulation and tiles), and polychlorinated biphenyls (light ballasts and transformers) creating liability associated with third parties coming onto or working in and around the property.
The improper use of hazardous chemicals (e.g., cleaning chemicals, fuels, lubricants, red bag waste, lab chemicals and waste, pesticides/herbicides, paints, solvents, or volatile organic compounds) can be released indoors or outdoors via improper storage, inadequate containment, or vandalism.
The insufficient chemical pretreatment of wastewater discharges to municipal wastewater treatment plants.
Improperly handled or stored gases, such as oxygen, chlorine, and ethylene oxide (in maintenance areas, laboratories, cafeteria, art studios, etc.), can lead to explosions and release of contaminants.
Improperly controlled air emissions from lab facilities may cause on- and off-site property contamination as well as bodily injury claims.
The inadvertent transport and subsequent disposal of unknown contaminated soil or materials from on-site activities, such as small spills, resulting in waste product.
Liability arising from both on- and off-site historical use, such as improper disposal, underground tanks, residual contamination from small leaks or spills, etc.
Liability associated with local or regional soil/groundwater contamination, regardless of the source of contamination.
If the educational facility is associated with a hospital, medical school, laboratory, and/or biology department, environmental risks may include incinerators that could cause air emissions of pathogens if the burn rate or temperature is not properly controlled.
Poor underground and aboveground tank management programs, resulting in surface and subsurface soil and groundwater contamination.
Laser smoke, which contains toxic gases such as benzene, hydrogen cyanide, formaldehyde, bio-aerosols, or dead/live cellular material (e.g., bone fragments or viruses).
Cleanup and liability associated with the disposal of waste/materials at disposal facilities or recyclers. This may expose the organization to Superfund liability. Such materials might include air conditioning units containing chlorofluorocarbons, acids, dry cleaning chemicals, adhesives, halogen lights, waste oil, batteries, or general waste.
The exposed asbestos and asbestos insulation on pipes and boiler, tiles, or insulation.
In trade show events, exhibitors may be bringing hazardous materials onto the premises without adequate precautions.
The disposal of televisions, computers, monitors, microwaves, refrigerators, or other devices.
One last area of exposure is with the property itself. Many higher educational facilities have operated on the same premises for over 50, 75, or 100 years. The past improper disposal practices of waste materials may have caused adverse soil and groundwater conditions on-site and to neighboring properties without anyone knowing. Furthermore, in many instances, especially with large universities and colleges, there could be poor or inadequate records of activity on donated property that present the school with potential environmental problems if not properly assessed.
The problems are only identified as the property is developed or possession is transferred from one entity to another. Even if environmental assessments are performed, especially in Phase I, they are only cursory reviews of the property, with a "walk-through" of the property to physically identify issues. In the event there was illegal or "midnight" dumping of waste, environmental reports may not even identify it. Property contamination from historical usage is real, and unless a process to vet such properties is in place, owners are exposing themselves to huge headaches.
It would not be prudent to dismiss the fact that environmental exposures and resulting liability exist with educational facilities. Owners of such facilities must utilize sound risk management practices to reduce, minimize, or even eliminate such risks. Furthermore, environmental liability insurance has become an effective way to fund any resulting liability.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.
Educational facilities confront environmental liability every day, whether known or not. Specifically, most types of educational facilities or properties, be they primary or secondary, public or private, face environmental exposures in three major areas: on-site operations, transportation of supplies and waste, and disposal of waste. Each area must be explored to identify risks that may expose the organization to environmental liability.
One of the biggest operational risks involves indoor air quality created by microbial growth of mold, bacteria, and even viruses. Not managing or addressing this growth when identified can lead to what we call "sick building syndrome." In fact, a recent review of the book of insureds at RT Specialty's Environmental and Construction Professional Practice between 2020 and 2021 found that indoor air quality was the leading cause of pollution legal liability insurance claims among the education-related policies purchased. This was closely followed by shutdowns and incidents involving spills on the premises, as well as contractors uncovering or inadvertently hitting existing structures like utility lines, tanks, and so forth.
Whether the result of fungal or mold growth (Aspergillus and Stachybotrys are the usual suspects) in the building or ventilation system, or bacterial build-up (Legionella pneumophila is the typical culprit) in the air conditioning or drinking water systems, when this growth becomes widespread, the result is typically not good. For those not familiar with Legionella pneumophila, between 5 and 30 percent of those who contract this bacterium that causes Legionnaires' disease die, according to the US Centers for Disease Control.
Many schools have experienced some sort of scare after the COVID-19 pandemic. As many facilities began to reopen, they experienced the presence of Legionella pneumophila in their water systems due to the extended shutdown period. One specific example occurred in late 2021 at Duke University, where about 84 people had to be tested and treated for suspected Legionnaires' disease. The source was identified as a training room linked to a basketball camp that ran in mid-August 2021. After experiencing flu-like symptoms such as fever, fatigue, nausea, and respiratory distress, the 84 people were treated for Legionnaires' disease and subsequently recovered with limited long-term impact on their health. Although the outbreak occurred at a summer sports camp, no students were reported to have been exposed.
Other risks that can expose educational properties to environmental liability include the following.
One last area of exposure is with the property itself. Many higher educational facilities have operated on the same premises for over 50, 75, or 100 years. The past improper disposal practices of waste materials may have caused adverse soil and groundwater conditions on-site and to neighboring properties without anyone knowing. Furthermore, in many instances, especially with large universities and colleges, there could be poor or inadequate records of activity on donated property that present the school with potential environmental problems if not properly assessed.
The problems are only identified as the property is developed or possession is transferred from one entity to another. Even if environmental assessments are performed, especially in Phase I, they are only cursory reviews of the property, with a "walk-through" of the property to physically identify issues. In the event there was illegal or "midnight" dumping of waste, environmental reports may not even identify it. Property contamination from historical usage is real, and unless a process to vet such properties is in place, owners are exposing themselves to huge headaches.
It would not be prudent to dismiss the fact that environmental exposures and resulting liability exist with educational facilities. Owners of such facilities must utilize sound risk management practices to reduce, minimize, or even eliminate such risks. Furthermore, environmental liability insurance has become an effective way to fund any resulting liability.
Opinions expressed in Expert Commentary articles are those of the author and are not necessarily held by the author's employer or IRMI. Expert Commentary articles and other IRMI Online content do not purport to provide legal, accounting, or other professional advice or opinion. If such advice is needed, consult with your attorney, accountant, or other qualified adviser.