Managing Environmental Liability

For many types of businesses, the actions of your employees and the events that take place on your property can cause significant damage to the environment that require a costly cleanup.

That’s why TriSure recently partnered with Highlands Environmental Solutions to host a seminar about recent regulatory changes, the risks to your business and how to appropriately respond to an incident.

Three things from the seminar we think you should know:

New administrations have brought new environmental initiatives. The new administrations have brought new environmental initiatives on both the federal and state level. The Obama administration has increased Brownfields funding; however, the USEPA has also increased enforcement of stormwater and Clean Water Act violations.

The North Carolina Department of Environment and Natural Resources (NCDENR) has increased inspections of underground storage tank sites, and sedimentation and erosion control issues.

Enforcement activity (i.e. civil fines) has increased on both the federal and state level. Your environmental consultant should be aware of and understand these policy changes. Also, you should know if your environmental insurance policy covers legal defense fees and environmental fines that can total thousands of dollars.
Environmental liability can be costly. Understanding what poses environmental liability to your company is the first step in controlling this liability. Environmental due diligence should be part of your basic business operation. Develop a simple corporate environmental policy, and make sure that your employees understand this policy.
Expect the best...but plan for the worst. Even the best plans and policies cannot prevent all disasters from occurring; however, you may still be held responsible for damages due to regulated releases from your facilities.

Proper spill prevention control and countermeasures plans (SPCC), stormwater pollution prevention plans (SWPPP), and proper spill containment and control systems can greatly reduce your exposure to environmental liability due to disasters.

Consider retaining an environmental consultant that understands your business, so that you are not thumbing through the Yellow Pages when a disaster occurs.

Whenever possible, your environmental consultant should work to solve and resolve your environmental concern, rather than long-term monitoring of the issue.

Finally, review your insurance coverage to ensure you are covered for environmental disasters. In short…be prepared.

Contact Joe Beaman, President of Highlands Environmental Solutions with questions about these updated regulations or to learn about the services provided by an environmental consultant.

Manage the Risk with Environmental Coverage

Comprehensive environmental insurance coverage is important to mitigate the human and financial impact of incidents.

Environmental risks have two basic components:

The policyholder’s obligation to clean up contaminated property and
The policyholder’s potential liability to third parties injured by the environmental hazard.

These risks lead to financial damages in the form of environmental cleanup costs, third–party bodily injury claims, third–party property damage claims, regulatory fines or diminished market share due to lack of environmental stewardship.

Let’s Do the Math

Companies can do two things to reduce the likelihood of an environmental incident crippling the business:

Respond to small problems before they become big.
Secure environmental insurance coverage.

Without proper coverage, the cost to clean up an environmental spill comes directly off the bottom line. But companies that are prepared, that have environmental coverage, reduce that financial risk. For most clients, an environmental rider can be added at a very low rate.

Contact your TriSure representative today. We’ll develop a plan that works with your bottom line and keeps your company safe.

TriSure partners with subject matter experts like Highlands Environmental Solutions to present educational seminars throughout the year. Please tell us what topics you’re interested in for future seminars and add your name to our guest list.