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.
The loss of business and replacement or repair of your business’ equipment is a hefty price in itself, but your business could also face damages for the clean-up operation. Usually, these type of costs are not covered by general business liability insurance, so you’ll need a specialist environmental insurance policy to protect your business.
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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.
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.
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.
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.
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.
A premises pollution policy can also provide coverage for business interruption losses including rental income, relocation, mitigation, net profits, and payroll.
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.
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.
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.
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.
Environmental 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 also cover the costs of defending claims, whether or not they result in a damages award. Additionally, holding environmental insurance for your business can 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.
Look out for environmental insurance policies that are automatically updated to reflect changes in the rules and amounts that apply to damages for breaching environmental regulations.
Not sure if environmental insurance is a good fit for your business? We can help you determine if it’s necessary.
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