If you are looking to start a contracting business in the demolition industry, then you probably know that the sector riddled with an array of risks. As a contractor, you cannot afford to ignore the possibility of workers and other third parties being exposed to pollutants during a demolition exercise. Therefore, a contractor pollution liability is critical for a demolition business owner as it helps cover against possible claims. However, there are different motivators to purchasing a contractor pollution liability that you should be aware of before getting any cover for your firm. This article highlights three of the most important motivators to buying a contractor pollution insurance policy.
Contractual Requirement -- This is arguably the primary motivator to purchasing a pollution insurance policy. When a client contracts your demolition company, it is more than likely that they will require you to buy a contractor pollution liability, especially if the project involves asbestos, mercury, or radon. If the project does not pose significant environmental impact, then the condition can be negotiated out of contract. However, such negotiations expose your business to financial risk since the nature of demolition projects is such that there is always the potential of environmental pollution. Regardless of how far the project is from human settlement, it is essential to buy the policy, which is a loss-financing tool.
Continuity of Projects and Contracts -- The marketplace for contractor pollution liability is very dynamic compared to standard commercial liability and worker's compensation. Due to this dynamism, insurance providers monitor your firm's daily activities to make sure that they are consistent with the purchased insurance program. Such assessment helps the service provider and your company to tweak the policy concerning projects that you might decide to undertake in the future. Therefore, your business enjoys the continuity of coverage while servicing contracts.
Potential Loss Events -- While the purchase of any insurance policy might be motivated by the likelihood of loss, the reason for a getting a contractor pollution policy is exceptional. Notably, all commercial liability policies have pollution exclusion clauses that might exclude or deny environmental pollution claims. Therefore, it leaves your firm exposed to an uninsured risk and subsequently financial damage. For example, one type of loss event that people in the demolitions industry have grappled with for a long time is mold liability. It can be attributed to the fact that mold liability policies have limits and only a few insurers will offer mold coverage. Insurers still provide such coverage on a claims-made basis and not on an occurrence basis. However, contractor pollution liability protects your company from possible pollution claims as and when they arise.
Contact a company like Proinsure for more information and assistance.