Fifty
two people have been sickened, and eight have died, in an outbreak of
Legionnaire’s Disease at the Illinois Department of Veterans Affairs 129 year
old facility in the last 6 weeks. This news, coupled with recent outbreaks in
California and New York, also likely connected to HVAC systems, has contractors
in the business of installing ductwork or plumbing checking their insurance
policies to see if they have coverage for losses of this nature.
According
to brokers who sell pollution coverage for construction businesses, the product
is “high severity, low frequency” coverage, reasonably priced for the risk
involved. However, different insurers treat legionella differently. Some deem
the bacteria included within the definition of “pollutant,” others require a
special legionella endorsement to get coverage, and a few will not cover
legionella under any circumstances.
The
Center for Disease Control reports that there are between 8,000 and 18,000
cases of Legionnaire’s Disease annually in the U. S., with most originating
from HVAC and non-potable water systems, but some also come from water faucets
and showerheads. Average cost for a Legionnaire’s Disease endorsement runs
between $1,250.00 and $1,500.00 for a million dollars of coverage.
