The Specialty Environmental Risks Insurance Guide
Environmental Risks Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Environmental Risks Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Environmental Risks Insurance policies they might need to do business.
Learn about Specialty Environmental Risks Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Environmental Risks Insurance Types
Click on the links below to learn more about Specialty Environmental Risks Insurance types and coverages:
- Asbestos Abatement Consultants Professional Liability Insurance
- Asbestos Abatement Contractors Insurance
- Asbestos And Lead Paint Abatement Insurance
- Auto Salvage Yards Insurance
- Brownfields Development Sites Insurance
- Construction And Environmental Testing Laboratories Insurance
- Crop Dusting And Spraying Insurance
- Dredging Contractors Insurance
- Environmental Consultants Errors And Omissions Insurance
- Environmental Contractor Bonds
- Environmental Impairment Liability Insurance
- Environmental Remediation Contractors Insurance
- Environmental Site Assessment Insurance
- Hazardous Material Haulers Insurance
- Hazardous Waste Storage And Disposal Facilities Insurance
- Landfill Closure Performance Bonds
- Landfill Insurance
- Lead Paint Contamination Insurance
- Lead Paint Removal Insurance
- Lenders Environmental Liability Insurance
- Pollution Cleanup Indemnity Insurance
- Radon Mitigation Consultants And Contractors
- Recycling Centers Insurance
- Storage Tank Testing, Installation And Removal Insurance
- Storage Tanks Insurance
- Underground Storage Tank (UST) Pollution Liability Insurance
- Vessel Pollution Insurance
What Is Asbestos Abatement Consultants Professional Liability Insurance?
Asbestos abatement consultants determine if a property contains asbestos and suggests ways to best mitigate any asbestos exposures found. Their professional liability exposure arises from mistakes they make in the assessment process and in testing during and after completing a mitigation project. Exposures can also arise if suggested methods are not appropriate or are not effective. Carriers that insure asbestos abatement contractors may extend liability coverage to also apply to asbestos abatement consultants.
What Type Of Insurance Do Asbestos Abatement Contractors Need?
At one time, many public buildings, offices, and school buildings used asbestos materials in their construction because of their ability to reduce the spread of fire. Those once-touted products have since been found to be extremely toxic. As buildings that contain asbestos are remodeled, remediated, or demolished, contractors must first remove or contain any asbestos material in them before starting any other construction activities. Liability insurance coverage on specialized asbestos abatement contractors is extremely difficult to place.
What Are Asbestos And Lead Paint Abatement Bonds?
Contractors that work on public projects are required to provide surety bonds. Carriers that specialize in insuring asbestos and/or lead abatement contractors have expanded into the field of surety bonds for these contractors because they understand their exposures.
What Type Of Insurance Do Auto Salvage Yards Need?
Coverage for auto salvage and junk yards is considered difficult to place from the standpoint of both general liability and property exposures. Poor housekeeping and highly toxic and inflammable solvents, batteries, and old tires on the premises are part of the problem. Open welding operations to remove parts can cause explosions due to the presence of gasoline and other flammables. Pollution is a major concern.
What Type Of Insurance Do Brownfields Development Sites Need?
Brownfields are abandoned, idle, or underutilized industrial and commercial properties whose expansion or redevelopment is complicated by contamination (real or perceived). Some of these sites were contaminated when the materials discharged into the ground deemed safe and legal at the time are now considered pollutants. As more substances are determined to be harmful (such as leaded gasoline and radon), many older sites are officially designated as contaminated. Lenders and industrial corporate owners frequently allow brownfields' taxes to become delinquent and let the city take over. Some states have enacted laws that allow a certain amount of contamination to remain after a site has been cleaned up. These laws address the need for the involved parties to restore the property to active use, while still protecting the owner's, operators, and seller's liability. Brownfields package policies cover remediation stop loss, residual contamination cleanup, third-party liability, and environmental impairment liability for cleanup operations and continued operations as an ongoing business. Various limits are available.
What Type Of Insurance Do Construction And Environmental Testing Laboratories Need?
Contractors, consultants, and engineers need the services of special testing laboratories to sample and analyze ground water, waste, waterways, air quality, soil, and hazardous waste. These laboratories may be independent contractors or may operate in connection with environmental consultants or engineering firms. Some labs are mobile and are transported to construction sites. Separate insurance programs are available for testing laboratories involved in acoustics and vibration, biological, chemical, construction materials, electrical, geotechnical, asbestos, mechanical, and thermal testing. Professional liability and pollution liability coverage is available.
What Type Of Insurance Do Crop Dusting And Spraying Operations Need?
This coverage is properly classified as a specialty aviation insurance coverage. It applies to insureds that use aircraft (including drones or UAVs) to dust or spray insecticides or herbicides on crops or other vegetation. The hazards for these operations are greater than those associated with normal aircraft operations because the chemicals the aircraft applies may be dangerous to animal life or neighboring crops which requires that the aircraft operations be performed at low altitudes. The three types of liability coverage available are third-party liability coverage without chemical damage coverage, third-party liability coverage including protection for damage caused by using insecticides, and liability protection for damage from all but a few chemicals. Coverage applies to both bodily injury and property damage. Prior loss experience, the operator's financial condition, the number of pilots and their experience, the use of UAVs or drones, and the types of chemicals sprayed are key factors in underwriting this business.
What Type Of Insurance Do Dredging Contractors Need?
Dredging contractors move dirt, sand, and accumulated debris from waterways (fresh and saltwater), primarily to redirect, clear, or establish new channels. Many dredging contracts involve coordination with the Army Corps of Engineers. Dredging equipment is usually on a barge that floats over the site.
What Is Environmental Consultants Errors And Omissions Insurance?
Environmental consultants' professional liability coverage insures against errors and omissions claims alleging that the consultant's advice, assessment, or recommendations resulted in economic damages. One of the most important components of the coverage is often the defense coverage. It is written on a claims-made basis and is subject to a retroactive date.
What Are Environmental Contractor Bonds?
Bid and performance bonds for contractors engaged in pollution cleanup and other environmental work are available from specialty insurers. These bonds supplement the pollution liability, commercial general liability, and auto liability coverages available to these contractors. Surety limits are provided on a per-job basis and can be substantial.
What Is Environmental Impairment Liability Insurance?
Commercial general liability coverage forms and policies exclude loss or damage due to contamination and pollution. Environmental impairment liability coverage is available to pay for damages due to such environmental impairment, including clean-up costs. The coverage purchased should be coordinated with the commercial general liability (CGL) policy in order to prevent any duplication of coverage, and to prevent gaps in coverage that may occur due to variations in the CGL-provided pollution coverage.
What Type Of Insurance Do Environmental Remediation Contractors Need?
Environmental remediation contractors clean up contaminated properties. Their liability exposures include inadequate or incomplete remediation; spread of contaminated soil during remediation or excavation; atmospheric emissions from remediation activities; contamination of aquifers; rupture of underground utilities or pipelines; spills or leakage from contractors' tanks; mixing of incompatible materials/wastes that results in fire, explosion or release of hazardous vapors; and improper tank installation. General liability, pollution liability, and professional liability policies can be written on a blanket basis or on a specific project.
What Type Of Insurance Do Environmental Site Assessment Businesses Need?
Environmental site assessment is an inspection that must accompany any application for a lenders environmental cost or property transfer liability policy. It is sold to real estate buyers and lenders and protects them from Superfund-type liabilities that arise from a commercial property that has undetected contamination at the time it is sold. Unexpected remediation costs can arise if it is later determined that the property has environmental contamination problems. Environmental site assessments are conducted by only approved independent consulting engineering firms. Contamination discovered during the assessment will not be covered under the applied for policy. Areas determined to not be contaminated are approved for coverage.
What Type Of Insurance Do Hazardous Material Haulers Need?
Coverage is available for businesses that transport hazardous materials. The Motor Carrier Coverage Form is normally used to cover auto liability and physical damage. General liability coverage may be modified to offer some pollution coverage and the MCS-90 endorsement is available for hazardous materials carried under the Motor Carrier Act.
What Type Of Insurance Do Hazardous Waste Storage And Disposal Facilities Need?
The Environmental Protection Agency (EPA) requires owners and operators of hazardous waste treatment, storage, or disposal facilities to either purchase insurance or provide other proof of their ability to pay for third-party damages caused by both sudden and not sudden occurrences of accidental pollution. Hazardous waste insurance covers companies actively involved in generating, processing, transporting, or disposing of hazardous waste. Coverages available include general liability, automobile liability, workers compensation, umbrella liability, and property. The Department of Transportation (DOT) MCS-90 endorsement required by the Motor Carrier Act is included where necessary. Commercial general liability usually has high limits and a wide range of deductibles. Coverage automatically includes any required EPA or state language by endorsement and certificate.
What Are Landfill Closure Performance Bonds?
The Environmental Protection Agency (EPA) establishes requirements for owners and operators of non-hazardous waste landfills that require bonds. These bonds are written by surety companies that specialize in them and other miscellaneous bonds. The bond program for non-hazardous waste landfills is designed for municipal solid waste landfills and demolition facilities. The financial responsibility may be accomplished through bonding, insurance, letters of credit, or trusts. The terms of the bond require that the operator continue to monitor the ground cover and ground water and maintain the landfill for 30 years after it is closed. This bond guarantees that the operator will perform such monitoring and required maintenance.
What Type Of Insurance Do Landfills Need?
Sanitary landfill operators are held to a high degree of care in the way they operate their businesses. A program is available for refuse haulers, solid waste landfill owners and operators, waste transfer stations, recyclers, and street cleaners. Companies that handle hazardous waste materials, infectious or radioactive waste, or asbestos are not eligible.
What Is Lead Paint Contamination Insurance?
This coverage can be written on a stand-alone basis or it can fill a gap in a general liability policy that excludes lead paint or pollution. Property managers, owners, landlords, and any party that controls the property is eligible to purchase this coverage. Varying per-claim and aggregate limits are available.
What Type Of Insurance Do Lead Paint Removal Contractors?
Lead additives were eliminated from paint used in residential and commercial applications in 1978. Many buildings painted before that date still have lead exposures because paint that chips exposes previous layers of paint. Lead paint removal contractors remove the lead paint so that it no longer poses a problem.
What Is Lenders Environmental Liability Insurance?
Financial institutions are increasingly concerned about their potential liability for cleaning up property if it is determined that the property on which they have made loans is contaminated by hazardous waste. Insurance coverage is available to protect real estate owners and lenders from government, state, and court mandated cleanup of contamination that is present but that was not detected when the property was purchased. Coverage also applies to costs associated with remedial investigation and feasibility studies, as well as defense costs that result from liability. It is sometimes known as secured creditor environmental exposure coverage.
What Is Pollution Cleanup Indemnity Insurance?
Marine Operations: This coverage protects an insured vessel owner and operator for legal liability that arises from the Federal Water Pollution Control Act and its amendments. The original federal legislation that dealt with water pollution was the Water Quality Improvement Act of 1970. It imposed liability on vessel owners for cleanup of oil spills. The Federal Water Pollution Control Act of 1972 broadened the scope of the original legislation to also include liability for cleanup of discharges of hazardous substances as well as oil or petroleum products.
Non-Marine Operations: This insurance provides coverage for cleaning up polluted nonmarine property. It also covers potential future costs of additional cleanup and some third-party coverage.
What Type Of Insurance Do Radon Mitigation Consultants And Contractors Need?
This is professional liability coverage for contractors and laboratories that test for the presence of radon gas in the soil surrounding residential or other buildings. These contractors also provide services to remove or eliminate radon from the property.
What Type Of Insurance Do Recycling Centers Need?
The operations of recyclers or scrap dealers include collecting, breaking up, sorting, assembling, and delivering the salvage or scrap material to manufacturing plants that use the recycled products to make new materials for packaging consumer products.
What Type Of Insurance Do Storage Tank Testing, Installation And Removal Businesses Need?
This is a special pollution liability policy available for contractors that remove, install, or maintain underground or aboveground petroleum storage tanks and systems. It insures against claims that involve sudden or non-sudden releases of petroleum products that cause environmental damage. Deductibles apply and are used.
What Type Of Insurance Do Storage Tanks - Aboveground Need?
The same carriers that write coverage on underground storage tanks also write similar coverage on aboveground storage tanks. Refineries and bulk plants are likely candidates for aboveground storage tanks coverage. Carriers can cover tanks that hold chemical, paint, pesticides, and other liquid toxic substances. There is no age restriction on tanks but older tanks are usually charged higher premiums. These policies provide on-site cleanup and third-party liability.
What Is Underground Storage Tank (UST) Pollution Liability Insurance?
This coverage was designed with the Environmental Protection Agency (EPA) to assist service stations, oil jobbers and others that own underground storage tanks to meet their financial obligations due to leaks from those tanks. It covers the cost of cleaning up leaking tanks and the resulting damage to property of others.
What Is Vessel Pollution Insurance?
Pollution caused by vessels, such as the Exxon Valdez incident in Prince William Sound in Alaska, can lead to extremely large losses. The vessel pollution coverage pays damages for leaks and spills of crude refined oil and other chemicals by ocean-going vessels that harm the environment. The United States Coast Guard (USCG) must approve any insurer that provides this coverage before coverage is placed with it. If an incident does occur, all clean-up must be conducted according to the Oil Pollution Act of 1990 and any subsequent revisions.
Environmental Risks Insurance - The Bottom Line
We hope that the Environmental Risks Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.