IEA_AARST_Radon_Reporter_JUNE_2024

32 | June 2024 It’s a good idea for mitigation businesses to routinely review insurance coverages to confirm they are adequate for the operations performed. Work with indoor air pollutants in any capacity should be covered by pollution liability insurance, which can be written as a stand-alone policy or packaged within an environmental combined form policy. An Environmental Combined Policy (ECP) typically includes three types of coverage: general liability, contractors’ pollution liability, and professional liability. What separates the ECP from the standard business owners policies on the market is the coverage for pollutants. Policies will always define pollutants, and the variances can be wide-ranging, so be sure to confirm with your agent that vapors and low-level radioactive waste are included in the definition. Don’t assume that work is fully covered just because a carrier provides your business with a policy. Some owners may think “I don’t need pollution coverage, there’s no way they can blame me for radon exposure.” This may be true, but the sad part is, it doesn’t matter. A business owner will need legal defense to protect the company, and that expense adds up quickly. If the insurance policy excludes pollutants, the insurance carrier will deny the claim, and the company will be forced to cover the cost of defense and the potential claim settlement. It is important to select an agent that understands the risk associated with the scope of work performed. Again, no two insurance policies are identical. The insurance agent should have a thorough understanding of the definitions and exclusions in the policy and be able to identify and select insurance carriers that are best for the business operations based on its exposures. Even if all business operations are being covered correctly and with adequate limits, a critical element in assessing risk is to have client contracts reviewed by the insurance agent to confirm that the insurance policy coverage and limits align with those required in the contracts to be signed. An accepted Certificate of Insurance (COI) may not suffice. If a claim occurs, it could be detrimental to the business to discover its policy is not in compliance with the signed contract. For example, if a contract requires a $5M umbrella/excess policy, but the company only carries $1M in coverage, guess who’s on the hook for the extra $4M? It’s certainly not the insurance carrier. If the business subcontracts work, check with the insurance agent on how the policy responds if a claim were to occur. The policy may have a subcontractor warranty endorsement stating insurance does not apply unless the subcontractor maintains insurance in force with specific coverage limits listed on the endorsement. It is good business practice to only use subcontractors that have adequate coverage limits and list your company as an additional insured on their policy while performing work on your behalf. Insurance is about managing your risk, and at the end of the day, the amount of risk you are willing to accept is a business decision. Talk to an experienced agent to make sure your business is covered effectively so you can sleep comfortably at night. BUSINESS Commercial Insurance for Radon Mitigation Corey Mills, Mills Environmental Insurance Services LLC