Dry cleaning properties pose environmental challenges for developers and property owners/operators. Contamination has turned many dry cleaning sites—often commercial properties such as strip malls, where dry cleaning is performed on site—into brownfields sites. Environmental insurance is one way to mitigate risk for brownfield redevelopment, and can also be used as a component of risk management plans for real estate owners with dry cleaning lessees. Whether insurance is used to support a real estate transaction, ongoing operations or a remediation project, it is important to present “the story” of the dry cleaning property. (Drop-off only locations are not considered dry cleaning sites.)

Dry cleaning operations have caused expensive and time-consuming remediation. Contamination is found in soils, in indoor air, and in groundwater, where it is distributed within and over property boundaries. Insurers generally find that soil contamination can result in a one- to three-year remediation, costing upwards of $400 thousand. Remediation for groundwater contamination can potentially bump the bill to five-plus years of investigation, remediation and monitoring, with costs reaching $2 million. Addressing indoor air quality issues as a result of solvent vapor intrusion can add to the costs. ...

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