View of Downtown Hammond, Indiana. By HammondMan [CC BY-SA 4.0], from Wikimedia Commons.EnviroForensics®, an Indianapolis-headquartered environmental consulting, engineering and design remediation firm with offices in Wisconsin, Kentucky, and Southern Indiana announced today that they are opening a Northwest Indiana office in Hammond, Indiana. EnviroForensics specializes in Turning Environmental Liabilities Into Assets® through their insurance archeology, investigation and remediation, and legal support services. EnviroForensics is investing in the Northwest Indiana area by strategically launching this new office to clean-up environmental contamination left from historical manufacturing operations in the region and help make way for new site development.
Steve Henshaw, Chief Executive Officer of EnviroForensics says, “We have conducted environmental remediation and oversight on dozens of projects in Northwest Indiana, including work on the Gary Chicago International Airport (GYY), the Indiana Harbor and Ship Canal, and the Gary Sanitation District. With this local presence, we will be able to work more closely with developers and municipalities to restore property values by cleaning up contamination and make them viable for financing by lending institutions, which will help bring increased investment dollars to the region.”
Northwest Indiana native and EnviroForensics’ newly appointed Northwest Indiana Branch Manager, Michele Murday will run the new office out of the HUB of Innovation, a cutting edge business incubator managed by the Hammond Development Corporation at 5233 Hohman Avenue in Hammond, IN. The office launch will be introduced at the Northwest Indiana Forum’s Summer Networking Event with local economic stakeholders on Wednesday, June 27th at 5:00pm.
LEARN HOW POLICYFIND USES INSURANCE ARCHEOLOGY TO PUT THE POWER OF THE CGL POLICY BACK IN THE HANDS OF THE POLICYHOLDER
BY: KRISTEN DRAKE
Over 25 years ago, EnviroForensics and PolicyFind’s CEO Steve Henshaw, P.G.discovered the power contained within historical commercial general liability (CGL) insurance policies in the face of a lawsuit or an environmental issue. Henshaw discovered and has since proven, that using a company’s historical CGL insurance policy is an effective funding source to pay for the expensive cost of investigating and cleaning up environmental contamination.
WHAT ARE COMMERCIAL GENERAL LIABILITY INSURANCE POLICIES?
CGL insurance policies are purchased by business owners to cover them against their business’ liability exposures. This is very important in determining whether an individual or business’ old insurance policies can be used to pay for environmental investigations and clean-ups.
This makes CGL policies very important protection for corporate policyholders because they broadly provide defense and indemnity coverage against claims for bodily injury and property damage. Coverage includes products, completed operations, premises, and operations, elevators, and independent contractors, to name a few.
Hiring a proven Insurance Archeologist can help your company uncover millions of dollars in usable insurance assets to cover legal fees and pay for investigation and remediation of environmental contamination.
HOW DO “HISTORICAL” COMMERCIAL GENERAL LIABILITY INSURANCE POLICIES WORK?
In general, CGL policies have included and even excluded environmental pollution and contamination language like “unexpected and unintended releases.” Such unexpected and unintended releases mean accidental releases or accidental spills, not intentional releases, which would be better defined as dumping or disposing. CGL policies were not covering individuals and businesses for pollution or contamination associated with dry cleaning operations. A separate environmental policy would be required to cover environmental pollution and contamination.
So, if you or your business bought CGL insurance before the policies contained absolute pollution exclusion language, you are likely to have insurance coverage that can address environmental contamination, even if that contamination has only been recently discovered.
In addition, old policies provide a defense against a claim or suit. In some states, a claim or suit could be a letter from the regulatory agency or a neighboring property owner demanding a response to identified environmental contamination. In other states, the courts have determined that the insurers must only defend an actual lawsuit.
‘OK’, you might ask, ‘that sounds great, but what if I can’t find my old policies or policies that were bought by the former owners?’ Well, those old policies can still be found. While there is no guarantee, contacting an expert insurance archeologist increases your chances of finding old policies or evidence of old policies. PolicyFind, a division of EnviroForensics, boasts an 85% success rate at finding old insurance policies or evidence of old policies.
Insurance archeologists have the knowledge-base to find evidence of CGL policies, and advise clients on how those policies can be used. Frequently clients say hiring an Insurance Archeology team was one of the best investments they’ve made and helped further their company’s success.
USING YOUR POLICIES FOR DEFENSE AND INDEMNIFICATION
After finding the old policies, it is then critical that you know how to use these policies to your benefit. Insurance law is different from state to state and not every state has good law for the policyholder. Insurance policies contain different language which can vary by carrier and by policy period.
In pulling this concept together:
A defense includes paying for lawyers dealing with the environmental contamination. A defense would also include quantifying an individual or business’ exposure and liability. The only way to quantify environmental liability is to collect environmental samples (e.g. soil, soil gas, indoor vapor, groundwater). It would also mean determining how expensive a cleanup would be, which means that, aquifer tests, feasibility studies and remediation technology evaluation should be covered.
Indemnification is the process where the insurer brings the insured back to where they were before the damages occurred, as stipulated within the insuring agreement. In other words, indemnification makes the insured ‘whole’ again by paying for damages or losses already sustained and expenses already incurred.
PRACTICAL APPLICATIONS OF YOUR CGL POLICIES
Historical insurance policies can be beneficial in providing coverage for a number of different situations. For example:
Plumbing and building supply companies defending product liability claims from exposure to products sold containing asbestos.
Municipalities involved in litigation.
Manufacturers of pumps defending product liability claims from exposure to asbestos gaskets.
Churches and schools defending personal injury claims.
Dry cleaners defending against environmental property damage claims brought by neighboring business property owners.
Business property owners defending property damage claims by state environmental authorities.
Insurance companies defending policyholders against environmental property damage claims and wishing to document insurance coverage of other potentially responsible parties.
Real estate developers, environmental consultants, attorneys and regulatory agencies.
WHAT YOU CAN USE CGL POLICIES TO FUND
Once triggered historical commercial general liability (CGL) policies may be used to for legal fees, defense against claims, site investigation, remediation/cleanup, interim remedial measures, building legal case, potentially responsible parties (PRP) search, interfacing with agencies and prior costs be may be retroactively recovered.
The process of using old insurance policies has many parts. There may be an insurance archeology component, a legal component and an environmental component and they all have to work together. Understanding all aspects of the process is not your job, that’s why you hire experts to uncover your insurance assets.
EnviroForensics and PolicyFind have successfully used the historical insurance of businesses, individuals and even defunct and bankrupt companies as sources of funding to pay for the investigation and cleanup of contaminated sites.
There are billions of dollars in unclaimed assets available to parties looking to defend environmental claims and personal injury claims. PolicyFind works diligently every day to put the power of the policy back in the policyholder’s hands – where it belongs.
Call PolicyFind’s insurance archeology experts today at 866-888-7911 or fill out our form.
PolicyFind clients commonly face immense challenges and deadlines, and they rely on our strengths to provide solutions for them. Our team understands the unique set of circumstances that businesses face when liabilities from past business operations arise. With our help, they can overcome their inevitable feelings of anxiety, powerlessness, and uncertainty.
Kristen Drake brings more than a decade of research and managerial experience in broadcast journalism to the field of insurance archeology. Since joining the PolicyFind team in 2015, Mrs. Drake has successfully documented liability insurance programs on behalf of municipalities, manufacturers and dry cleaners. She continues to translate her expertise in source procurement and digital fact-finding, performing insurance research activities at a very high level, providing on-time execution of contracted performance goals.
Right now, in cities and towns across this nation, abandoned and underutilized properties stand as a reminder of a different time – what are now empty husks of buildings, tall red brick or cement facades, and abandoned industrial corridors were once prosperous properties that provided jobs and economic benefit to their communities.
The expansion, redevelopment, or reuse of these former industrial or commercial sites may be complicated by the presence or potential presence of environmental contamination are known as “Brownfields”. At EnviroForensics, we see the opportunity these sites hold, and we have a unique set of keys to unlock the assets needed to realize the full potential of Brownfields properties. For decades, we’ve been Turning Environmental Liabilities Into Assets®, and overcoming the hurdles surrounding Brownfields development. In 2016, we even developed an abandoned Brownfields site into our new, cutting edge headquarters. Read how we transformed the former Brownfields site into a place focused on conservation, reuse, and being a part of the community.
Brownfields site example: The property pictured above at 825 North Capitol Avenue in Indianapolis is a Brownfields site. The 23,000 sq. ft. structure had environmental contamination left behind by an auto repair shop. The contamination complicated redevelopment and reuse.
The Challenges of Developing Brownfields
When looking for a property to develop, municipalities and developers have to make a choice: “Do I search out a pristine ‘greenfield’ property (where little to no real or perceived environmental concerns exist) in the suburbs?”, or “Do I roll the dice and purchase an existing piece of property that may have some environmental concerns due to historic operations?”.
The development or redevelopment of an existing property can be complicated, but as cities are revitalizing their urban cores, and companies are looking for urban space near their future workforce, they are facing their concerns with more focus and interest to solve the potential development challenges. The most common way to bankroll the environmental services needed to bring a Brownfields site back to life is through local, state, and federal grant and loan funding; however, city officials and development corporations often cite the lack of available grant or loan money as their biggest challenge. Even if a project is awarded a grant or loan, those funds come with restrictions and can run out before any meaningful progress is made towards revitalization of the property.
There are several specific challenges that make Brownfields cleanup and development unique when compared to other real estate projects:
1. Environmental Liability Concerns Brownfields and other contaminated properties carry with them very real concerns and questions about liability:
Who is responsible for paying for the investigation and cleanup if there is a possibility of historical operations that may have contaminated a property?
How can a purchaser protect their current and future liability through becoming a Bona Fide Prospective Purchaser (BFPP)? How long does this liability protection last?
Can a purchaser ensure that their family or business successors will not be burdened with this liability in the future?
2. Financial Barriers: How Much is This Going to Cost? The hurdle many investors, developers, and municipalities fear from the start of a project is that their funding sources could run short, and they could be left responsible for additional costs or liability. This is often the reason Brownfields properties can sit vacant for decades, adding blight and risk to communities.
Although there are opportunities for grants, tax incentives, and loan packages, they are highly competitive, and are not always the best option to fund a project from start to finish; even if grant money can be applied toward a project, there are often gaps in payment due to the limitations and restrictions of the funding source. For more information on Environmental Protection Agency (EPA) Grants and alternative funding sources, readEPA Announces Millions in Grant Funds–But Who Was Left Out? A supplemental funding source is needed to make sure projects are seen through to completion.
3. Planning for Redevelopment Often, property owners, municipalities, and developers have plans and visions already conceptualized for the development of a Brownfields property before even starting down the environmental road of performing Phase I, Phase II, and other site investigations as a part of the due diligence process. Unfortunately, this process can uncover environmental concerns that can dramatically change the planned course of a project, and in some cases grant funding sources will only provide enough funding for a minimal amount of cleanup.
For example, let’s say a developer or municipality wants to redevelop a Brownfields property as a multi-tenant mixed-use (commercial and residential) building. They learn that their grant or loan source is limited, which ultimately limits their options for development to commercial or non-occupied land use. This could relegate the property’s potential to nothing more than a parking lot due to outstanding environmental concerns. Where can they find additional funding sources to cleanup the property and bring their original vision to life?
The Missing Key
The bottom line is that there is a limit to the most commonly used avenues of grant and loan funding in the Brownfields world. Additional forms of funding can maximize your development options, can minimize your future liability, and can provide you with the flexibility to apply funding to suit your project’s needs.
This is where PolicyFind™ comes in. PolicyFind, a subsidiary of EnviroForensics, uncovers evidence of historical insurance coverage that can be used to cover both environmental investigation and cleanup costs. To learn more about the insurance archeology process, read How Does It Work: Insurance Archeology and CGL Policies.
In many cases, adding our insurance archeology strategy to your traditional portfolio of funding options can provide you with confidence that the resources needed to complete your development project are sufficient and accessible. Let us help you realize your development visions by helping you add these untapped funding sources to your Brownfields strategy.
Ensure Better Reuse Opportunities with Thorough Environmental Cleanup
A better cleanup means more options for your development project by conducting reasonable and necessary cleanup efforts to remove the risks of exposure to contamination. The use of insurance assets can put your Brownfields project on the fast-track to remediation all without solely relying on traditional grant funding options. This is how EnviroForensics and PolicyFind can help you find the missing key to financing your Brownfields Development.
Brownfields Are An Opportunity For A Promising Future
Despite the perceived challenges, Brownfields don’t have to be a reminder of days gone by, but instead can be seen as the sign of a promising future. Brownfields properties are untapped resources waiting to be revitalized and returned to a meaningful use, all with the added benefit of providing an improved tax base for cities.
Brownfields development example: At EnviroForensics, we saw the value of investing in the North Meridian neighborhood. We located and used historical insurance policies to investigate and remediate a vacant building and once cleanup activities were completed, we brought our vision for a new HQ to life. EnviroForensics’ Headquarters sits at 825 North Capitol Avenue, a former Brownfields site in Indianapolis, where more than 75 team members come to work every day.
A redeveloped property that works to bring new life to an area is more likely to bring new business opportunities, jobs, and tax revenue back to your city.
Metropolitan cities across America have experienced a renaissance over the past 15 to 20 years with new construction and development of Brownfields, and nowhere is this more prevalent than in the City of Indianapolis. Laid out in a grid, Indianapolis is partitioned into sections and intersected by freeways like spokes on a wheel — creating the “Crossroads of America.”
Over the years, patches of each quadrant have seen a slow, deliberate wave of redevelopment and revitalization wash over it. Factories have been replaced with luxury apartments and hotels, warehouses have been transformed into office buildings and craft breweries and old garages are getting second lives as art galleries, restaurants and grocery stores. These buildings are a natural fit for adaptive reuse with their large footprints and timeless architectural features and their redevelopment brings commerce and excitement to distressed areas. The biggest hurdle standing in the way of most of these revitalization efforts is potential environmental hazards left behind from years of industrial operation. We manage environmental cleanups to revitalize these properties all the time. It’s what we do for our clients every day. But, in this particular case, it’s what we did for ourselves and for the surrounding North Meridian Neighborhood in Indianapolis.
The North Meridian Neighborhood starts a block north of I-65 and runs south to New York Street, just two blocks north of Monument Circle. Courtesy: Downtown Indy.
Brownfields Site History: An Old Transmissions Garage
The 825 N. Capitol building operated as a transmission and automotive repair shop for decades and it sits on a stretch of Capitol Avenue just a few blocks north of the Indiana Statehouse, and right across the street from the famous Litho Press Building, now a luxury apartment complex. We originally purchased the building to store our equipment and company trucks. In a few short months, we found ourselves needing more space for our employees and we decided to use the space to build a new corporate headquarters.
825 N. Capitol Building in the fall of 2015.
The unassuming cinder-block structure with a limestone façade was first constructed in the 1930s and because it operated as an auto repair shop, there were unexpected spills and releases of oils and solvents that found their way into the soil and groundwater. In addition to specific source contamination, groundwater beneath the building was also impacted from an unknown upgradient source.
Seeing the Brownfields Site Potential for Redevelopment
In 2000, EnviroForensics opened its Indianapolis office with three people in the old Stutz Auto Building, which is the “original” Indianapolis Brownfield Redevelopment, made up of nearly 100 offices and art studios of various size and configuration. By 2010, the office grew in size and was relocated to another old warehouse at 602 N. Capitol, above an active dry cleaner. As the city downtown grew and parking became more scarce, management found an old automotive repair company at 825 N. Capitol Ave. to store its trucks and equipment. By 2016, EnviroForensics was bursting at the seams with staff jammed in the main office and several satellite offices located in nearby buildings. By this time, EnviroForensics had grown to over 60 people and it was pretty clear that they needed to consolidate the team and find a new office space. After assessing the financial implications of renting more office space and committing to a new lease, it became clear that the old automotive repair building could be remediated and refurbished as the corporate headquarters.
“We wanted to make a statement with our headquarters about conservation, reuse and giving back to the community. Not only did we want to create a great environment for our team to work in, we wanted to reuse a structure that had once been a thriving part of the local economy and assist the neighborhood in maintaining its industrial legacy and heritage.”
Rising to the Redevelopment Challenge
The 825 N. Capitol Avenue property needed serious updates. Not only was the building divided into separate structures, old and in disrepair, but in order to get financing from the bank for the construction build out the soil and groundwater quality beneath the building needed to be assessed and remediated and the employees occupying the new building needed to be protected from potentially harmful vapors emanating from the soil and groundwater beneath the building. From a construction standpoint, the property had many issues, which included:
The front facade’s tenuous connection to the rest of the structure.Eroding wires and weathered grout were the only things holding the front of the building together.There were significant roof issues with the built-up tar and gravel that had been in place for decades.The building was still in a two-unit configuration from its days as a transmissions garage and a costume warehouse, and there wasn’t a safe way to travel between the two buildings without having to go outside.
Redeveloping Our Brownfields Site With Insurance Archeology
For us, dealing with the environmental issues was relatively painless, as we conducted the research of the historical operations and we were able to find the old Commercial General Liability (CGL) policies of the past owners and operators. Because the soil and groundwater was contaminated, the Indiana Department of Environmental Management demanded that the site be fully assessed and understood and that soil vapors be routed from beneath the subsurface concrete slab to the roof line, so they did not build up and create an indoor health hazard. In tendering the insurance carriers of the former owners and operators, we were able to get the old insurance carriers to pay for all of the environmental and legal costs required to get the building squared away from an environmental standard and satisfy the banks concerns regarding the soil and groundwater contamination.
While remediation efforts were ongoing, we contracted Brandt Construction and Mawr Architecture and Interior Design to start work on shoring up the structural integrity of the building, and designing the eventual floor plan, so we could push the project forward as quickly as possible. The Brandt crew turned the two buildings into one by:
The adjoining walls were torn down in four spots to connect the two buildings.Once the walls were opened up, Brandt Construction secured them with load bearing archways.Brandt Construction also connected the first and second floors with a custom-built stairway.And they erected a new facade along a portion of the roof to create what is now our open common area for company-wide meetings and gatherings.To ensure the safety of the indoor air for our team, Vapor Protection Services (VPS) installed a passive mitigation system.
With the electric and water utilities installed, the skeletons of office walls put up, and the windows replaced, the bones of our building were complete.
Bringing Further Revitalization to the North Meridian Neighborhood
The new and improved EnviroForensics building is now a two story, 23,000 square foot office and community space with beautiful exposed brick walls, stylish edison bulb light fixtures, and plate glass room dividers.
The new and improved 825 N. Capitol Building where EnviroForensics’ 75 team members come to work every day.
The hallways are a celebration of Indiana artists with work from 13 Hoosier painters and photographers. We’re proud to have six different collaborative workspaces, including three conference rooms, and two dedicated kitchen areas for EnviroForensics’ 75 team members to both work and enjoy each other’s company.
One of the first things you see as you enter is the Founder’s Room. One of six open collaborative workspaces in the EnviroForensics building. Courtesy: MAWR Architecture + Interior DesignThe Community Room, where EnviroForensics team members gather for full staff meetings, meals, and other office-related fun. In its previous life, this room was part of the roof. Courtesy: MAWR Architecture + Interior DesignThe two buildings are connected with four archways like this one (pictured left). Also pictured is the custom-built staircase (right), which required a portion of the floor to be removed and reinforced in order to install. Courtesy: MAWR Architecture + Interior DesignThe Front Lounge is another multifunctional space for team members to collaborate on projects or meet for lunch. It features a number of works by Clotilde Embry Funk, a Hoosier artist who was an illustrator at the New York Times, and was one of the first females to work at the storied newspaper. Courtesy: MAWR Architecture + Interior Design
The North Meridian Neighborhood was slowly on the rise before we moved to our renovated office in August of 2016. The popular Indianapolis Cultural Trail is headquartered here, the popular Indianapolis Canal Walk is available for lunch time strolls, employees can grab a drink after work at Brew Link Brewing Company, luxury apartments are right across the street, and Myriad Fitness, a crossfit gym, is within a short walk. And, coming in late 2018, there will be an added infusion of culture with the renowned Phoenix Theater moving its operations to a new 20,000 square feet, state-of-the-art facility nestled at the corner of Illinois street and the Cultural Trail. We’re excited about the future, and hope that our contribution of keeping high-paying jobs in the area helps spur the continual redevelopment of downtown Indianapolis.
World Environment Day happens June 5th, and is the primary vehicle for the United Nations to promote a specific cause to protect the environment. This year, they’re focusing on plastic pollution, which is a critical issue around the world. According to the UN, we produce more than 300 tons of plastic waste every year, which is the estimated combined weight of the world population. Plastic can take anywhere between 500 to 1,000 years to break down, and can leach chemicals into our drinking water and endanger wildlife. The good news is you can do something to help solve this challenge.
Here’s a few tips to help you reduce the amount of plastic in your life–and the Earth’s ecosystem.
500 million straws are used in the U.S. every day. You can cut down on that amount of waste by replacing them with a set of reusable straws like the one pictured above.
Pack your lunch in reusable containers…
Food in reusable containers. Courtesy: Google
The average American uses 540 single-use plastic ziplock bags a year. Cutting these out of your life is a win-win for you and the environment. Less plastic waste in our landfills, and more money in your wallet!
And with reusable utensils
Instead of plastic utensils, pack one of the many sets of reusable utensils, such as utensils made from potato starch or cornstarch, or these reusable bamboo utensils in your lunch, or bring silverware from home.
… And bring your own containers to use in the bulk aisles
Produce and Bulk Food aisles at the grocery store. Courtesy: Google
For the Indianapolis area locales, click here to see a list of grocery stores in the area that allow you to bring your own containers. Between tips 4 and 5, you can completely eradicate your pantry of all single-use plastics.
The average American creates 4.4 pounds of waste each day. That’s nearly a ton a year, which fills a lot of plastic garbage bags. If you are going to create some form of non-recyclable waste, at least throw it into a biodegradable bag.
Recyclable metal toothpaste tube. Courtesy: Davids Natural Toothpaste
Cut down on plastic waste by using products like David’s toothpaste (pictured) which comes in a recyclable metal tube. You can also make your own tooth powder out of natural ingredients and pack it in a reusable glass jar.
Actually recycle
Trash and Recycling bins at EnviroForensics Headquarters.
91% of all plastic ends up in our landfills. We can significantly cut down on this number if we just rinse and throw our plastic containers in the recycling bin instead of the trash.
Don’t just jog. Plog!
Plogging is the newest fitness craze to hit the United States. It’s a combination of jogging and picking up litter on your route. The trend started in Sweden in 2016 following increased concern about plastic pollution.
There are so many easy ways to cut down on plastic use and waste. Think about how you can implement some of these tips into your life, and tell a friend or two. Challenge everyone you know to commit to using less plastic and get more tips on how to live a more sustainable life. Together, we can make a difference for our Earth’s ecosystem and for future generations.
Jennifer Hallgarth is a Licensed Professional Geologist with over 13 years of environmental consulting experience with a focus in insurance claims expertise. She’s responsible for management of numerous chlorinated solvent and petroleum projects throughout various stages of environmental investigation, remediation and closure with projects ranging from $1,000 to over $2,000,000. Ms. Hallgarth has attained specialized experience related to insurance claims, including claim coverage evaluation, forensics investigation, cost allocating, reserve estimating, third party review, and litigation support.
Hallgarth is an adjunct lecturer for Indiana University – Bloomington, where she teaches a course called Introduction to Risk Assessment and Risk Communication. She is also the head of EnviroForensics’ Sustainability Council.
