We may be busier, but we’re also getting smarter.
According to a recently published report, the frequency of environmental claims continues to increase 20-30% each year. One theory suggests this growth in exposure is due to an uptick in construction activity brought on by a recovering economy. There are more projects, therefore there are more claims. And while this certainly contributes to the trend, the fact is that more parties are simply more aware of the exposure to potential loss.
Contractors, manufacturers and business owners are recognizing that adding a pollution endorsement to their existing general liability policy is a cost-effective way to mitigate environmental risk. More lenders are also taking steps to protect their investments by requiring their partners to obtain some form of pollution coverage.
But why? Why are contractors and lenders suddenly more concerned about environmental risk? The answer is on the front page of today’s newspaper. Environmental issues dominated headlines in 2015 — growing concerns over fracking, legionella outbreaks in New York City, numerous pipeline leaks, the Flint water crisis. The list goes on.
Countries around the world have taken note. Governing bodies in Canada, Mexico, South American, China, South Korea and the European Union have implemented new rules and regulations. Meanwhile, the U.S. Environmental Protection Agency has been active in various jurisdictions across the country, but has not introduced any sweeping changes to environmental policy – at least not yet.
Finally, the frequency of environmental claims is on the rise because insureds are getting better at reporting claims. They are becoming more educated about establishing an environmental claim protocol, like timely reporting of incidents when they happen. You see, the trend isn’t driven by an increase of projects alone. At the heart of the trend, more parties are increasingly concerned about environmental risks and are more aware of the solutions at hand.
If you’re interested in obtaining pollution protection for your enterprise, talk to an agent today to learn more about Amerisure’s Contractor’s Pollution Legal Liability Insurance (CPL) Endorsement and Premises Pollution Legal Liability Insurance (PPL) Endorsement.
