Should You Consider Environmental Insurance?
It’s safe to say that most construction companies are aware of their need for general liability and workers’ compensation insurance. Construction contractors rarely consider that their company may end up in court for performing work that damaged the environment, but it does happen more frequently than one would imagine.
The U.S. Environmental Protection Agency has determined that construction contractors have a significantly high potential for contributing to environmental damages. The EPA considers general contractors, subcontractors, engineers, and architects as suspect when it comes to environmental pollution and the resulting damages pollution causes. Unfortunately, some contractors may not recognize the significant risk of environmental claims.
Typical environmental pollution should motivate contractors to be diligent on their job site as well as consider environmental insurance. Check out a few more reasons to consider this coverage.
- Most general liability and professional liability policies exclude coverage for pollution claims, meaning that you may not have any current coverage in place.
- Spills of toxic chemicals that are stored and used on job sites such as solvents, finishers, and fuel can lead to a pollution claim.
- Exposure results from hazardous materials such as fiberglass, asbestos, lead paint, and mercury that is not properly disposed of.
- Due to lack of safe and secure drainage strategy, stormwater runoff from project sites may occur.
- Unintentionally puncturing an underground pipeline or storage tank may result in the release of a hazardous material.
All of the episodes listed above can affect general contractors as well as subcontractors. Any contractor or subcontractor that becomes a party to a project can be held directly or indirectly responsible for a pollution claim and the significant loss of remediation.
Environmental insurance can provide financial protection for defense costs, settlement agreements, and judgments awarded by the court. Are you ready to secure your needed coverage? Talk to the team at Nahai Insurance Services for quality insurance protection for your project.
