Requiring Pollution Insurance for a dry cleaner tenant?
I am under contract on a strip center with a dry cleaner. They had a violation a few fears ago and required to get a phase 2 to be done they found PCE at 1.67 mg/kg in one sample out of like 25 they did "this is where they were dumping the mop water at everywhere else did not detect PCE" which even the highest read of 1.67 is still well below 5.1 mg/kg allowed. 

They passed inspection and violations where closed by ADEQ. They now use only environmental friendly products. I was still going to make them get pollution insurance to renew there lease but the issue is it is about 5k+ a year which is too much for them. Anyone else require pollution insurance for a dry cleaner or am I being a stickler? I just do not want to take on any liability for this.
[{"id": "is7nenx", "text": "You mean like a surety bond? Yeah, probs get one of those.", "replies": [], "depth": 1}, {"id": "is7q3s5", "text": "1) Get your own phase 2 prior to purchase.  If it comes in different from the previous then you know they can't be trusted.  \n\n2) I'd require the pollution insurance anyway because if they go out of business it's still your ass on the line.  Consider reducing future rent increases to help them mitigate the cost.", "replies": [{"id": "is89itg", "text": "I wonder if they went out of business if their insurance would cover it still as they are the insured on the policy. If I am additional insured I should be safe I would think.", "replies": [{"id": "is9mf22", "text": "Unless they continue carrying a specific pollution policy, if the dry cleaners goes out of business it\u2019s all going to fall on you as the landlord. Their normal General Liability policy will not cover pollution damages.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "is7rh1c", "text": "You could always negotiate a discount in rent in return for pollution insurance if it is important to you.", "replies": [], "depth": 1}, {"id": "is7wc0s", "text": "Do not buy a piece of real estate that is contaminated are you insane", "replies": [{"id": "is803zl", "text": "It has had a recent Phase 2 did you read this? It all came back well below limits with only traces found and that is only where they were dumping the mop buckets. It was a very extensive phase 2 that cost the owner over 20k. In my eyes I am kind of happy they did this knowing worst case is I have minimal well below ADEQ guidelines.", "replies": [{"id": "is84h2q", "text": "That found contamination... guidelines change and just because it's below a regulatory threshold doesn't mean someone can't make a claim against you.", "replies": [{"id": "is891r5", "text": "I agree with this and this has been my thought all along they are always changing things and no one can predict the future.", "replies": [{"id": "isasfja", "text": "If it\u2019s a strip mall, how problematic (financially speaking) would it be to not have them as a tenant? I don\u2019t like displacing anyone either, but in the context of my own financial security, there is no way on earth I jeopardize that. Find another tenant that can either A: afford the policy, or B: has another purpose for the space. If there\u2019s 6-10 units, would temporary vacancy on 1 unit kill you? If so, I\u2019d strongly reconsider the purchase.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "is7wkts", "text": "Those chemicals stay in the soil for decades and can spread up to 1/4 mile in the soil. So you\u2019ll want someone to carry pollution insurance because if someone goes looking for a deep pocket the landlord is the first person sued when the dry cleaners declares bankruptcy.\n\nBe aware, these types or policies tend to be written on a \u2018claims made\u2019 basis meaning if you or the laundromat stop paying for them one year you need to buy \u2018tail\u2019 coverage which allows you to make claims for damage that occurred in years past.\n\nYour concern is valid and I recommend budgeting as part of the purchase unless you want to gamble. Pollution insurance for dry cleaner waste is expensive because that is the ultimate cost of the chemicals we used for all those years.", "replies": [{"id": "is7zmms", "text": "Tail coverage I am a little lost. Are you saying if say my phase 2 they did how they found some PCE but minimal amount would that area be excluded from any future claims?", "replies": [{"id": "is84o1t", "text": "Two slightly different things. \n\nYour phase 2 survey seems to indicate minimal pollution to the soil. But it\u2019s a free country and anyone can sue anyone. And I recommend doing your own phase 2 because sellers might say anything.\n\nNormal liability policies you would carry, for slips, trips and falls, generally if you buy coverage for year 2022-2023 you can always submit a claim under that policy term later, even say 10 years later. If the injury or damaged occurred in that policy period.\n\nOn claims made policies, you only ever submit claims on the policy year currently in effect. This is a common way of writing pollution insurance policies. So when you decide to purchase pollution insurance you really have to keep buying those policies year after year. If you ever decided to stop carrying pollution insurance you would buy tail coverage that would allow you to submit claims later under the \u201ctail\u201d claim reporting period extension you purchased.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "is82p2e", "text": "I wouldn't touch an active dry cleaner with a 100 foot pole.", "replies": [{"id": "is882q6", "text": "Even after a clean phase 2 and they are only using environmental friendly products now. What are your reasons?", "replies": [{"id": "is88ivl", "text": "Asbestos was environmentally friendly.", "replies": [], "depth": 3}, {"id": "is89iuh", "text": "Lots of reasons. A phase 2 can miss something. They can promise to only use environmentally products, lie about it, and leave you holding the liability. Other buyers also feel this way and it could be hard to sell in the future. \n\nI just don't see the reason to take on that risk unless the profits are immense. And they're unlikely to be immense if you're negotiating over $400/month in insurance.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]