Due to more stringent environmental regulations are in place, as instituted by federal and state legislators, many industries, particularly the construction sector, are being subjected to greater environmental liability exposures, which may result in financial losses. Having a proactive approach to risk analysis and risk management will certainly aid Tri-state area contractors, and a Newton Construction insurance agency can also help with any potential exposures, providing coverage and evaluating risk control and risk transfer options.
Potential environmental liability concerns have proven to be costly to contractors in the Tri-state area. Environmental issues are often a roadblock to project development and construction, especially when unexpectedly encountered during project construction. Environmental issues tend to represent an impediment as well as a financial drain on many construction projects.
Plagued by environmental concerns
Residents often voice their concerns over new construction projects in their neighborhoods and recognition of potential environmental concerns in a project’s planning stages is the best risk management tool at your disposal. However, it is not a substitute for having construction insurance that covers environmental liability. But even with the best planning unexpected environmental issues may come to light during your project.
There are many exposures to be considered, including carbon monoxide, mold, or bacterial air releases from faulty heating and ventilation systems, construction debris containing hazardous materials, toxic chemical storage, along with inadequate containment for hazardous materials, waste, and process areas.
Perhaps the best approach is to be well aware of these concerns and prepared to properly react when environmental issues appear on a job. As the contractor, you’ll need to know in detail the full scope of your responsibility and have a complete understanding of any regulatory requirements and hurdles. You must fully understand the time and money involved in working with these regulatory agencies in the assessment and the disposal phases and act accordingly.
External pressures to address environmental impairment of commercial real estate will continue to mount due to any pressure applied by financial institutions to protect their interests. You should take the time to speak with a Newton Construction insurance agency about construction insurance, and especially environmental liability coverage.