The Right Environmental Insurance Plan
Each industry has its own unique exposures and risks, insurers are creating special customer service units to accommodate the needs of these clients. For example, a chemical industry may need coverage for underground tanks, drumming and re-packaging facilities, and manufacturing facilities. A hospital, for example, may need protection from pollution and damage caused by hazardous wastes. Many environmental insurance products for hospitals are customized to the needs of each client.
Most environmental insurance policies are written on a claims-made and reported basis. This means that if a claim is made during the policy term, the policyholder must report it within the policy period, and must renew at the end of each term. Certain contractor policies, however, are written on a claims-made basis. The premium for these policies is payable before coverage begins. The insurance premiums are paid upfront, so the policyholder will not incur any costs until they need them.
There are a few major companies that offer environmental insurance. These carriers have increased their underwriting capacity in response to the increasing demand for the product. These companies are competing for business by increasing their offerings and their rates. They can be competitive, so an average $250,000 policy today may cost $50,000. The key is to know what to expect, and then shop around to find the right policy at the right price. The more you shop around, the more you’ll be able to save money in the long run.
Because of the unique risks involved in environmental issues, many insurance policies exclude liability for USTs. Because of this, it’s important to understand the policy details. The policy should cover all aspects of environmental liability. The coverage limits should be adequate for the amount of coverage needed for each business risk. Generally, the limit for coverage for pollution releases depends on the policy’s terms and conditions, and it’s best to check the details before purchasing it.
Environmental insurance is tailored to the needs of the insured. Applicants must fill out an application with information about past and current owners, purposes of the site, and future concerns. The application may be reviewed by an environmental lawyer or consultant, depending on the scope of the risk. When applying for environmental insurance, it’s important to consider the risks involved. If you have an existing facility, you need to ensure that it’s covered. If your property is near a Superfund site, you’ll want to make sure that your company has a comprehensive plan.
Environmental insurance is crucial for a number of reasons. It can enable real estate investments. Insurers of brownfield properties have often been hesitant to invest due to the risk of a lawsuit if they couldn’t obtain proper coverage. It can be difficult to find the right policy based on your needs, but the right provider will be able to help you determine the best solution for your business. A specialist can advise you on what is best for your company.