This exposure category is usually the most commonly thought of and detected during construction projects. These risks can include many different factors, such as altering the asbestos, mold, or lead found in contaminated building materials during the renovation of existing buildings. Has the appearance of mold as an insurance problem caused risk managers to lose sight of other environmental exposures associated with residential works? Jeff Slivka provides a list of other risk management issues. Residential construction companies are exposed to many environmental liabilities due to their daily operations.
Specifically, they face the following risks that are the focus of this discussion:. For example,. Some recent examples include the following:. The one thing we all need to keep in mind is that, while environmental liability insurance is a good way to finance a loss, it's always better to manage exposure before the loss.
A highly publicized environmental disaster can have a catastrophic impact on an organization's reputation and, ultimately, on the destruction of the bottom line. While insurance may eventually pay for the loss, as long as the appropriate insurance limits have been contracted, nothing will do to restore an organization's reputation. Dive into thought-provoking industry commentary every two weeks, including links to free articles from industry experts. Discover practical risk management tips, information on important case law and be the first to receive important news about IRMI products and events.
IRMI Update provides thought-provoking industry commentary every two weeks, including links to articles from industry experts. Failure to manage environmental risks throughout the life cycle of a construction project can have negative ramifications. For example, as government agencies continue to take environmental issues more seriously and pressure construction companies to act, policyholders can have the peace of mind that their insurance policies respond to changes in the law and ensure continuity of coverage. This includes maps of future floods, predictions of erosion and future risk for transport, all of which help to plan sustainable and future-ready developments.
Risks can be presented by disrupting contaminants or contaminants that are already present at a site, or by introducing new ones due to leaks, accidents or other errors, or by a combination of both. However, depending on the type and size of the project, risks can vary and be difficult to assess. As public awareness of environmental issues increases, insurance buyers are focusing more on environmental protection and seeking to better understand the details of their policies. While this is expected to generate the stimulus needed to boost economic growth, projects run the risk of causing this type of unwanted environmental damage.
Learn to recognize the different types of construction activities and how they are interrelated, to identify environmental risk throughout the project life cycle, and to determine the best possible environmental insurance coverage for your type of project and your liability. We bring an unparalleled combination of industry-specific knowledge, deep intellectual capital and global experience to the range of risks you face. The scope of flood risk modeling techniques provides an overview of the extents, depths, and directions of flow to support planning and reach between flood sources: groundwater, surface water, rivers or coastlines. For example, in Europe, there are quite strict regulations governing the response to environmental damage, which require not only the cleaning of any pollution, but also the recovery of the area where the event occurred, a process that can be long and expensive.
To help manage potential risk, an important first step is to make a comprehensive environmental assessment report before the project begins to understand the state of the area where construction will take place. The first national flood map for climate change is also available, which provides probabilistic climate predictions to model the risk of future floods starting in the 2080s. .