The response to the below ENVIRONMENTAL RISK REDUCTION blog has been OVERWHELMING!
The facts are the only TRUTH!
The following companies do not provide proof of Environmental Insurance and therefore,
DO NOT HAVE Environmental Insurance!
(Environmental Errors & Omissions/Professional Liability)
JCP LGS Commercial Property disclosures
Omesa Data Group
You order Environmental Reports to reduce your Environmental Liability and Risk!
ERS-Environmental Record Search HAS YOU COVERED!
(We are The Intelligent Choice!)
ERS provides an individual Insurance Certificate covering environmental for each and every LenderCheck (Loan Checking Report)!!!!!!!!!!!
Client Responses to the Blog
- Our current Environmental Report Company sales representative tells us that their $30 million general and professional (errors & omissions) liability insurance covers us!
Response: Normally YES but, not in the case of ENVIRONMENTAL DATA! All common general and professional (errors & omissions) liability insurance excludes ANYTHING environmental related. Errors, omissions, and negligence that result in environmental claims in anyway (cleanup, remediation, Phase II investigation, sampling, reduction in value, etc.) are not covered if the insurance policy form does not specifically cover environmental.
Solution: Use ERS-Environmental Record Search!
2. Our current Phase I Environmental Site Assessment Company is using one of the environmental database companies above for their radius search reports for each of their Phase I Environmental Site Assessment reports. Are we covered and is my Company at Risk!
Response: Your Company is at RISK! Your Company is at risk and a portion, if not all of the Phase I Environmental Site Assessment is worthless! EPA AAI Standards require the Environmental Company to maintain $1 million of environmental professional (errors & omissions) liability insurance for their environmental reports. Since the database company is not covered with environmental insurance and the environmental company always has a statement within their Phase I Environmental Site Assessment report stating “we take no responsibility for vendor’s reports and are not responsible for the accuracy of information obtained from ___________” You are not covered!
Solution: Use ERS-Environmental Record Search!
3. Our Bank requires our Phase I Environmental Site Assessment Report Company to use EDR (could be any one of the above listed). Could we and/or our bank (financial institution) be at Risk or Liability for knowing of the lack of Environmental Insurance by these companies?
Response: Yes! But, to get a definitive answer you should consult your legal advisor at all times. Keep in mind; it’s your responsibility and a banks fiduciary responsibility to protect your company, clients, stockholders, owners, etc. If you are using, recommending, requiring any company or service, there is a minimum amount of expected due diligence that is expected of the companies you recommend, suggest and/or require. A recommended and/or used Environmental Database Company not having Environmental Insurance for Environmental Reports, environmental consulting, and/or environmental data reports could be construed as a dereliction of duty! Check with your legal advisor!
Solution: Use ERS-Environmental Record Search!
Common Sense Based on Facts!
- If your Environmental Report Company does not have PROOF of environmental insurance – YOU’RE at RISK! The Sales Representative that states that they have environmental insurance without a copy of an insurance certificate showing ENVIRONMENTAL is like believing a politician that says they can solve all our problems!
- If your Phase I Environmental Site Assessment Report Company uses exclusively a database Company listed above (like EDR), YOU May be at RISK! Since the Phase I Company and Database Company both do not stand behind the data, don’t have environmental insurance and the report is used as part of a Phase I (25%), your Phase I is virtually worthless, you have no recourse and you are at RISK!
- If your Phase I Environmental Site Assessment Report Company won’t use your LenderCheck (Loan Checking Report) that you use for environmental due diligence loan screening, which is the same as a Radius Search report in their Phase I’s, saving you money ($75-$150 per Phase I) YOU are being Cheated! Don’t let them tell you they can’t take the liability for someone else’s report when they don’t take any liability anyway! Give them your screening reports and demand a discount on your Phase I reports!
Pass this BLOG to your Peers, Loan officers, Risk officers, Chief Financial Officers, and Legal Advisors.
Don’t let them be in the dark!
ENVIRONMENTAL RISK REDUCTION
Insurance – Limitations – Liabilities
There are several companies that provide environmental due diligence products (LenderCheck, Loan Check, Environmental Screens, RSRA’s, Etc.) to the financial lending community. The biggest company (The 900lb. Gorilla) is very well known and has been in business the longest of any of the companies. Of these companies ERS – Environmental Record Search is the ONLY ONE that provides you with an actual reduction in YOUR financial liability and risk.
What does that statement truly mean in relation to the following?
- If your current environmental data/ report vendor provides your Company with $30 million of General Liability and/or Errors and Omissions Insurance (professional liability), does this protect your Company? NO!
You are buying environmental information, products, services, consulting and environmental opinions. The policy form must include Environmental Liability (CPL (Pollution) for the Errors and Omissions Insurance (Professional Liability). Almost ALL General Liability and/or Errors and Omissions Insurance (Professional Liability) EXCLUDES anything ENVIRONMENTAL unless expressly stated and purchased. Therefore, if your provider misses a known site, spill, leak, etc. on the subject site, your COMPANY has NO recourse! Any cleanup, remediation, etc. is your responsibility upon default and/or foreclosure. Their report afforded you absolutely NO Risk Reduction and may have actually increased your Risk and Liability!
Does ordering from ERS-Environmental Record Search protect your company? YES!
ERS – Environmental Record Search has $3,000,000 of Environmental General Liability and/or Errors and Omissions Insurance (Professional Liability). In addition, ERS provides a Certificate of Liability Insurance for each and every LenderCheck Report! Click on the following link to request your copy of our Certificate of Environmental Liability Insurance.
2. Liability limitations also virtually make any insurance coverage worthless. The 900lb. Gorilla states the following in each and every report provided to its clients: “Any liability on the part of the 900lb. Gorilla Inc. is strictly limited to a refund of the amount paid for this report.” So, if you PAID $100 for the report you will receive $100 for their negligence and to remediate the site. Good Luck!
1. Excessively extreme limitations of use statements within the Environmental Report virtually make the report worthless unless you check all the data yourself and you are an Environmental Professional. The 900lb Gorilla makes the following statement: “disclaims any such warranties or fitness for a particular use or purpose” for all their reports. Does this mean your Company should not use this for screening and/or Environmental Due Diligence? ERS –Environmental Record Search stands behind its reports!
2. Accepting a report in an “AS IS” condition and stating the following: “Any estimates, analyses, ratings, environmental risk levels, or risk codes provided are for illustrative purposes only” and “all information provided should not be interpreted as providing any environmental risk level or decision for the property”! Then the 900lb Gorilla seems to imply: Only a Phase I Environmental Site Assessment completed by an Environmental Professional can determine the risk for any property. WHY buy their products? THEY DON’T COVER YOU AT ALL. Your Company actually assumes ALL the RISK for the data and professional opinions they provided to you! ERS-Environmental Record Search REDUCES YOUR RISK and covers you with an actual insurance policy covering ENVIRONMENTAL!
3. Other environmental database Companies, including the 900lb Gorilla, do not stand behind their environmental professional’s opinion (ex. SBA RSRA Report). The following is one of those statements from their reports: “The Professional Opinion Summary and/or Details described in this Report are solely those of Consultant and not the 900lb Gorillas” “Consultant is not affiliated with ________ in any way, shape or form”. WOW! You can’t really count on their reports and opinions! ERS Environmental Record Search ONLY uses its own in-house SBA and EPA Qualified Environmental Professionals. If using any other Vendor besides ERS-Environmental Record Search, your Company must have an Environmental Professional on staff to RELY on the conclusions and interpret the reports, otherwise you are INCREASING your RISK and Financial Liability!
GET TRUE ENVIRONMENTAL RISK REDUCTION
ERS – ENVIRONMENTAL RECORD SEARCH
Share this blog with your Risk Manager, Chief Financial Officer and Attorney!