Most business owners and executives tend to think of pollution insurance as something that is only necessary for corporations whose operations can lead to a catastrophic environmental disaster over a single mistake. Of course, there are some businesses in which these hazards are clear from the start. But many companies fail to realize how their own operations can lead to a large or small scale environmental disaster. Some have realized too late that even a contamination that spreads only a few square miles can lead to substantial losses.
Fortunately, financial backup is available in the form of industrial special risks insurance for larger companies, or specific pollution insurance plans for organizations of all sizes. These plans can help protect companies from the costs associated with environmental disasters of any scale.
Why Pollution Insurance is Necessary
Pollution Can Destroy a Business
Environmental regulations are changing constantly due to the growing concern over the impact of pollutants. Maintaining compliance with these regulations can be difficult for every business, from a family owned shop to a large corporation. Aulson, a small industrial cleaning company, realized just how detrimental these regulations can be when it was forced to pay over $30,000 in fines for its improper storage practices. Fines this high can easily force a small business into bankruptcy, especially if the incident also has a negative impact on the company’s reputation within the community and hence leads to a loss of customers. Even small businesses that operate from an office face the potential of water main breaks, Freon leaks, and more.
- The country in which the violation took place
- International regulatory bodies
- The corporation’s home country
Protect Your Business from Pollution Claims
A pollution insurance plan can help protect businesses from the losses related to a claim of pollution or environmental damage. These plans can cover expenses resulting from a variety of environmental disasters. Cleanup efforts, lost wages, fines, and even the money lost after being forced to halt operations can all be covered by the right plan. For bigger companies, industrial special risks cover will take care of the costs in almost any eventuality, For smaller comapnies, a specific pollution insurance policy may be a better fit. These plans can be tailored to cover a specific geological location or a broad range of international operations. Insurance providers can also tailor policies to meet a broad list of potential disasters according to each company’s operations.