Asbestos, once a popular construction material because of its fire-resistant properties and durability, has now been recognised as a significant health hazard. Prolonged exposure to asbestos fibres can lead to severe illnesses such as mesothelioma, lung cancer, and asbestosis. As a result, businesses and individuals who own or manage properties with asbestos-containing materials need to be aware of the importance of asbestos insurance. In this article, we will explore the types of coverage available to address the risks associated with asbestos.
General Liability Insurance
General liability insurance forms the foundation of most business insurance policies. It offers coverage for bodily injury and property damage caused by the insured’s operations, products, or services. Although not specifically designed for asbestos-related risks, general liability insurance may cover certain asbestos-related claims, such as third-party bodily injury resulting from exposure to asbestos fibres on the premises.
Contractors Pollution Liability Insurance
Contractors and construction companies working with asbestos-containing materials require specialised coverage beyond general liability insurance. Contractors Pollution Liability (CPL) insurance is tailored to protect against environmental liabilities, including asbestos-related risks. CPL policies can cover claims arising from the release of asbestos fibres during renovation or demolition activities, as well as claims related to improper handling, disposal, or transportation of asbestos-containing materials.
Environmental Impairment Liability Insurance
Environmental Impairment Liability (EIL) insurance provides comprehensive coverage for pollution-related liabilities, including asbestos exposure. This insurance is vital for property owners or operators who have asbestos-containing materials on their premises. EIL policies can cover bodily injury claims resulting from asbestos exposure as well as costs associated with remediation, clean-up, and legal defence.
Pollution Legal Liability Insurance
Pollution Legal Liability (PLL) insurance protects businesses against liabilities arising from pollution events, including asbestos contamination. PLL policies typically cover bodily injury, property damage, and clean-up costs resulting from asbestos release. This coverage can be crucial for property owners, manufacturers, or contractors involved in activities that may disturb or release asbestos fibres.
Professional Liability Insurance
Professional Liability Insurance, also known as Errors and Omissions (E&O) insurance, is essential for asbestos consultants, inspectors, and abatement contractors. These professionals provide expert services related to asbestos identification, testing, removal, and management. Professional liability insurance can cover claims arising from errors, omissions, or negligence in their professional duties, such as faulty asbestos inspections or inadequate removal procedures.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is mandatory in many jurisdictions and provides coverage for employees who sustain work-related injuries or illnesses. For employees exposed to asbestos in the workplace, such as construction workers, maintenance personnel, or insulation installers, workers’ compensation insurance can offer medical benefits, disability coverage, and compensation for lost wages.
Given the well-documented health risks associated with asbestos, it is essential for businesses, property owners, and professionals to secure insurance coverage. General liability insurance, contractors pollution liability insurance, environmental impairment liability insurance, pollution legal liability insurance, professional liability insurance, and workers’ compensation insurance are some of the key types of coverage available to address asbestos-related risks. It is crucial to consult with insurance professionals who specialise in environmental and asbestos-related insurance to understand the specific coverage needs and ensure adequate protection against the potential liabilities associated with asbestos.
