Legionella Outbreak Risks: The Importance of Water Management and Environmental Insurance

Legionnaires' disease is once again in the news. An outbreak in Iowa has claimed the life of a retired Catholic priest and sickened more than 20 others. This situation comes on the heels of a Harlem, New York outbreak, which has resulted in several deaths and over 100 additional cases. The illness highlights a vulnerability that real estate owners and property managers need to factor into risk management and insurance planning.

What is Legionnaires' disease?

Legionnaires' disease is a severe form of pneumonia caused by Legionella bacteria. This bacteria thrives in building water systems, such as plumbing, cooling towers, and hot tubs. Inhaling contaminated water droplets (or aspirating water) can lead to infection.

Prevalence of Legionella

The Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control and Prevention (CDC) report the United States sees an estimated 6,000 to 10,000 cases of Legionnaires’ disease every year. Researchers believe many cases go unreported, since Legionnaires’ disease often resembles other types of pneumonia.

Legionella bacteria naturally grow in water, especially in warm conditions. Most reported cases occur in habitational structures such as hotels, apartment towers, and condo buildings. However, Legionella can occur at any business that has large air conditioning systems, hot water tanks, and other damp infrastructure where the bacteria can thrive.

How to prevent Legionella growth

To protect your building and its occupants from Legionella, hire a qualified environmental consultant to evaluate your building’s water systems for potential risks. You want to identify areas susceptible to Legionella growth and get specific recommendations for your property.

Engage this professional to develop a formal water management program that outlines control measures, monitoring schedules, and corrective actions. This written plan needs to identify key personnel responsible for implementing and documenting all activities, from temperature checks to system cleanings.

A comprehensive water management plan includes specific guidance to minimize the risk of bacterial growth in your water systems. You’ll see recommendations on topics like these:

• Monitor water temperatures: Keep hot water at or above 140°F (60°C) and ensure it doesn't drop below 120°F (49°C) at the tap. Maintain cold water systems below 68°F (20°C). You want temperatures that are inhospitable to Legionella bacteria.
• Prevent water stagnation: Flush both hot and cold water systems weekly, especially in unoccupied units or low-traffic areas. Regular water flow prevents sediment buildup and discourages biofilm formation where Legionella can thrive.
• Clean and disinfect systems: Establish a routine schedule for inspecting and cleaning water tanks, cooling towers, and so forth. Disinfect these components regularly according to industry standards to remove scale, sediment, and biofilm.
• Test your water periodically: Engage a certified laboratory to test your water systems for Legionella. Regular testing validates the effectiveness of your management program and provides early detection of potential issues, allowing for swift corrective action.

The legal and financial impact of an outbreak

The cost of implementing a water safety plan, conducting regular tests, and maintaining equipment is a predictable, manageable operating expense. In contrast, the cost of inaction and potential liability claims is unpredictable.

Victims of the Harlem outbreak have already filed lawsuits against construction companies, alleging that negligence — specifically, the failure to treat water in cooling towers — led to the "completely preventable" tragedy.

These legal actions seek compensation for medical costs, lost wages, and pain and suffering. Jury verdicts in liability cases can result in multimillion dollar judgments.

Beyond the immediate legal costs of an outbreak, the long-term financial fallout includes increased insurance premiums, costs for emergency remediation, potential loss of tenants, and the risk of a lower property value.

When you weigh the controlled expense of mitigation against the potential multimillion dollar liabilities of an outbreak, prevention is most economical path.

How environmental insurance protects property owners

Even with the most diligent water management plan, it’s impossible to eliminate the risk of a Legionella outbreak completely. An unforeseen equipment failure or human error can lead to bacterial growth, exposing your property to liability claims.

A dedicated environmental insurance policy serves as a cost-efficient, critical layer of financial protection, acting as a safety net for unpredictable events. It can help cover costs associated with bodily injury claims, legal defense fees, loss of business income, crisis management services, and the significant expenses of testing and remediating the building’s water systems.

The combination of a robust water management plan, regular maintenance, and environmental insurance creates the strongest possible defense against the financial devastation of an outbreak.