3 Ways Severe Weather Is Increasing Environmental and Pollution Liability

This August, as Death Valley experienced a 1,000-year rain event, all Steve Tagert could see were the pollution risks.

In a matter of hours, nearly a year’s worth of rain poured from the sky. The desert park experienced flooding and road closures. Portions of Highway 190 in California had to be shut down.

Tagert, who is Allianz Global Corporate & Specialty North America’s regional environmental practice leader, said that events where there is unexpected flooding or other types of extreme weather can bring pollution liability exposures to areas that hadn’t previously experienced these types of issues.

‘We’re seeing flooding where flooding hasn’t happened in the past,’ Tagert said. ‘Companies or properties are being flooded that hadn’t been flooded in the past … They may have chemical storage or they may have asbestos on their pipes in their basements or lead-based paints or other types of chemicals that are released when the floodwaters come in.’

Flooding isn’t the only type of Nat CAT that can cause businesses to face environmental exposures. In addition to the mold and contaminated water runoff claims that come with floods, winter storms can cause sewage pipes to burst, and wildfires can lead to contamination with PFAS or forever chemicals.