There are many different risks that come with operating a business. Some you can mitigate and control through careful business practices, but others you have very little power over, like the weather.
Thankfully, for just about any issue that could arise in business, there is insurance coverage available. Most businesses with a physical location have liability and premises insurance policies that protect them in case someone gets hurt on their property. There are workers’ compensation insurance programs to protect you from injury claims from employees. There are also environmental insurance policies available for businesses.
Companies that manufacture products or work with chemicals often need some kind of environmental coverage to protect them from an accident that impacts the environment outside their facility. After all, a work accident or unexpected weather situation could result in environmental consequences that could be very expensive for a company to address.
How does environmental insurance work?
Like many forms of business insurance, environmental insurance coverage will be specific to your company’s needs. It will likely detail the exact circumstances in which the coverage protects your company, and those circumstances will vary depending on the kind of business you do. However, the coverage will typically protect you from the cost associated with environmental remediation or cleanup.
Provided that you comply with the terms of the policy, which typically require that you follow state and federal guidelines for your industry, your insurance company should cover the expenses related to accidental environmental damage. Those could include health costs, outdoor cleanup costs and similar expenses.
Leaks caused by a collision with a vehicle transporting goods, a fire or some form of inclement weather are all examples of circumstances in which a responsible company could wind up needing environmental coverage. Unfortunately, some insurance companies will do just about anything to avoid paying out on policies that can cost them a lot of money, which include environmental business policies.
Review your policy documents with an attorney after a claim denial
The best way to figure out what options do you have if your insurance company denies you coverage after an environmental incident in San Diego is to go over your coverage documentation with an attorney. A lawyer can review the policy and verify if your circumstances meet the criteria for coverage.
Provided that they do, your lawyer can also help you take legal action to enforce your policy. Bad faith insurance claim denials involve companies attempting to avoid liability without a valid reason, thus violating the terms of your contract.
These cases can be complicated to litigate and can require months, if not years, to fully resolve. Working with an experienced business litigator is in your best interest for enforcing your rights as a business with an environmental policy.