June 5, 2013
by Chris Bunbury
I was contacted by an insurance professional that represents a client whose business obtains their work predominantly through bidding for jobs. Over the past few years the insured has been more limited on work they can bid because more and more jobs are requiring them to have pollution insurance coverage. The insurance professional told me his insured did not have pollution coverage because they were sure it was going to cost too much.
That is when the light went off, the insurance industry has marketed their products in such a way, insureds for the most part look at insurance as an expense or as a way to finance a loss.
Generally speaking that is an accurate way to look at insurance. But there are some insurance products that are an investment and they allow those who invest in them to gain a leg up and benefit, not just be made whole. In many circumstances environmental insurance is an investment that allows the investor to gain benefit and grow while better protecting their business assets.
I shared the following with the insurance professional: “The insured is looking to buy environmental insurance because more and more jobs are requiring the pollution coverage in order to get work. By investing into an environmental insurance policy the insured can use it as a marketing tool while also being able to bid on jobs requiring the coverage. On the other end of the spectrum, for jobs they bid that do not require pollution coverage, they can add value by pointing out to a prospective client why they should require vendors performing this class of work to have pollution coverage. Not only will this help to eliminate competitors it will increase the opportunity to get work. Both ways, investing into environmental insurance, is a win win for the insured and the pollution coverage is assisting the insured to grow their business. Pollution insurance is not an expense but part of “Best Practices” and in many instances a strategic investment in a business’s ability to grow and be successful.”