Do Construction Companies Need Environmental Insurance?
Most construction companies know they need several types of insurance to protect their business, projects, workers, and more. There tends to be a heavy focus on general liability and workers’ compensation. However, there is a lesser-known risk that construction companies must consider: environmental damage.
Failing to address this issue can land businesses in court over damages their company inflicted on the environment. The Environmental Protection Agency (EPA) considers construction as a major source of pollution and subsequent damage. As a result, they view engineers, general contractors, subcontractors, and even architects as suspect in regards to pollution damage.
Things to Consider
Construction companies should not take concerns about litigation lightly. The potential for a lawsuit is all too real and can bankrupt smaller businesses. Other reasons to consider environmental insurance include:
- Most liability policies (general and professional) do not provide coverage for claims related to pollution.
- Even the most environmentally conscious construction crew can have a chemical spill or puncture an underground pipeline. Accidents happen and companies need to protect themselves from inadvertent releases of hazardous materials.
- Improper disposal of hazardous materials can result in public exposure and illness.
- Drainage issues at construction sites can contaminate local water due to runoff.
Having environmental insurance can protect construction companies in the event of a lawsuit. Most policies provide several coverage options that business owners can choose from to best suit their risk level. The construction industry is litigious; construction business owners need to protect their investment by reducing their risk. To learn more about environmental insurance, contact The Reilly Company.