Protect your business from the potential risks of pollution with environmental insurance.
The cost of environmental damage to businesses.
Environmental concerns continue to be a leading societal and business issue, sometimes posing serious and unexpected challenges. These days, businesses face tougher environmental laws and greater public scrutiny. So, when your business accidentally causes pollution, contamination, or other environmental damage, it can be costly all around. By having an environmental insurance policy in place, you may help protect your business against the environmental risks you face.
Areas where business insurance alone is not enough.
The loss of business and replacement or repair of your equipment is a hefty price in itself, but your business could also face damages for the clean-up operation. Usually, these types of costs are not covered by general business liability insurance, so you’ll need an environmental policy to help protect your business. Here are some common environmental risks that your business may cause and would need coverage for:
- Oil Spill
- Lead
- Asbestos
- Mold
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Mold
Risk Factor
Some water leaks are very obvious so they’re able to be repaired timely. Others are more discreet, causing mold to grow unnoticed. Mold is a health hazard that can make tenants very sick.
Solution
Premises pollution policies can include coverage for remediation of mold and damage to the property. It can also provide coverage for defense of claims of bodily injury as well as court-awarded damages.
Lead
Risk Factor
Many old apartment buildings contain lead-based paint, which is now known to be very harmful if absorbed into the body. Small amounts of lead can cause serious health issues and larger amounts can be fatal.
Solution
Premises pollution policies provide coverage for removal of lead-based paints and other lead hazards. It can defend against legal claims of injury caused by the lead as well as medical monitoring for ongoing concerns.
Business Income
Risk Factor
If a building is contaminated by mold, lead, asbestos, or other hazardous materials, it may be deemed uninhabitable. Owners who are unable to collect rent from tenants can suffer from significant income loss as a result.
Solution
A premises pollution policy can also provide coverage for business interruption losses including rental income, relocation, mitigation, net profits, and payroll.
Asbestos
Risk Factor
Asbestos is a heat-resistant material that was commonly found in insulation, drywall, ceilings, and floor tiles up through the mid-1970s and later. Asbestos is known to cause severe lung damage.
Solution
Because asbestos was so prevalent in construction materials and can still be found in buildings today, purchasing premises pollution insurance that includes coverage for asbestos remediation, property damage, legal defense for bodily injury claims, and medical monitoring can protect your financial investment.
On-site Oil Spill
Risk Factor
A broken pipe or the misdelivery of heating oil can result in a hazardous spill and a costly clean up. Other chemical spills can be equally detrimental for building owners. Spills can also go beyond the property line, causing third-party damage.
Solution
It can be very expensive to clean up after a hazardous material spill like oil or gasoline. If the damage extends beyond your property onto your neighbors, those costs go up exponentially. Because this sort of accident can happen quite easily, proper premises pollution insurance is essential to help mitigate the financial risk.
Why your business needs environmental insurance.
Insurance is particularly essential if you face long-term risks, such as historic contamination that results from business operations in the past, but causes damages now. Many environmental insurance policies may also cover the costs of defending claims, whether or not they result in a damages award. Additionally, holding environmental insurance for your business may even be a great public relations move—it shows you’ve given thought to the risks and have taken the advice insurers offer to reduce the likelihood of an incident.
Some policies automatically update with regulations.
When selecting an environmental insurance policy, look out for options that are automatically updated to reflect changes in the rules and amounts that apply to damages for breaching environmental regulations. This may help you in the long term to avoid potential gaps in the protection of your business.
Not sure if you need environmental insurance for your business? Contact us to go over your potential risks and coverage options.
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