A Few Environmental Insurance OptionsEnvironmental Training Resource
June 12, 2012 — 1,160 views
Environmental insurance options are readily available to meet the needs of various businesses and industries. Check out the list below to learn about some of the most popular forms of this coverage.
Environmental impairment liability insurance
While it may appear necessary only to oil companies and nuclear plants, this type of insurance could in fact prove beneficial to agribusinesses, municipalities and remediation contractors, among others. It helps them in the event of a negligent act or omission that results in environmental damage. Both contractor and site-specific options are available.
This insurance can be tailored to a business' needs, which could enhance its value. Specific coverages include pollution liability, storage tank pollution liability and transporter insurance. With the right option, you can receive protection against environmental claims such as cleanup costs and pollution conditions.
Be sure this insurance is necessary before making the investment. If an individual or organization is completing tasks that present no environmental risks, it might not need this kind of insurance to protect its assets.
Environmental professional errors and omissions liability insurance
Environmental engineers and consultants can protect themselves from liability for negligent acts, errors and omissions with this insurance. According to the Environmental Risk Resources Association, a wide range of environmental service vendors commonly purchase these policies.
While this kind of insurance can frequently prove valuable to these professionals, they should review the exclusions that could arise when creating the policy. The source notes environmental engineers and consultants should use particular care when evaluating the policies, as underwriters typically have a great deal of latitude they can use when addressing the needs of those that need the coverage.
Asbestos and lead abatement contractors' general liability insurance
This sort of policy provides coverage to asbestos and lead abatement contractors, but excludes pollution from the materials these professionals use. Essentially, asbestos is considered a non-pollutant with this general liability insurance.
The source reports the price for this policy has recently been adjusted, a reflection of the good loss history in this class of business. Additionally, lead paint concerns have led many contractors to expand their policies to include coverage in this area.
While some might consider this option a claims-based option, it might prove more valuable to contractors to purchase occurrence-based policies. It could be more cost-effective to buy separate commercial general liability and contractors' environmental coverage for asbestos and lead, as both are available as occurrence-based policies.