The Importance of Bankers Environmental Risk InsuranceMay 14, 2020
Environmental liability exists for numerous industries. These industries procure insurance to protect them from the costs associated with damages from environmental hazard events. When claims are filed, the financial institutions backing the insurance policies are responsible for covering the costs for reparations, restitution and bodily injury provided for under the claimant’s policy. Often, banking professionals do not consider insurance options to safeguard the company from increasingly frequent environmental damage responsibilities.
The Difference With Environmental Risk Coverage
Though the risk for liability costs from environmental hazards is increasing due to growing populations and a concurrent trend towards urbanization, a majority of banks do not have sufficient policies to protect them. General liability insurance is inadequate in providing coverage for pollution events, toxic spills or chemical accidents and exposures that damage ecosystems and public health. Bankers environmental risk insurance offers specific coverage tailored to meet financial industry needs, whether it is for on-site or off-site events, interruptions to business or acquired property damages. An additional benefit to coverage is in the protections offered against the financial costs of litigation.
When it comes to insuring a bank against the costs associated with environmental damage claims, the right coverage makes a difference to the bottom line. Financial institutions require a policy that is uniquely designed to protect the company from environmental risk liabilities. It is an investment that will pay off in long-term savings.