Construction projects and their environmental exposures are more complex than ever. All too many contractors gamble with their bottom lines – ignoring environmental exposures because claims are not frequent. But here’s the kicker – while these incidents may not happen frequently, they are very expensive. Cleanup and remediation can quickly eat up profits.
What This Means If/When You’re Hit With A $100K Claim
In the last 10 years, a new threat to contractors and their insurance companies has been on the rise: toxic mold claims. The number of toxic mold damage claims has skyrocketed since 2002. The cost of those claims more than doubled from 2001 to 2003, with insurers paying out $1.3 billion in mold-related claims in 2001 and more than $3 billion in 2002. And the trend continues today.
With constantly evolving contract stipulations and government regulations, New York contractors face more challenges than ever when it comes to navigating their insurance requirements. Expanding EPA regulations related to mold, lead and other pollutants have created gaps in General Liability coverage, and many types of contractors other than environmental firms are finding themselves increasingly vulnerable to these risks.