Did you know that 9 out of 10 restoration companies purchase fundamentally flawed insurance programs - insurance programs that have coverage gaps for the restorer and their customers alike?
With owning a building comes a certain set of risks, so it’s important for owners to take a systematic approach to managing these risks. Transferring risks can be a great way to manage, but you must be cautious when doing so. In transferring a risk such as disaster clean up or remediation, you could still end up liable in the event of a disaster depending on your restoration company’s insurance policy.
Here’s what you need to know about insurance to make sure you are covered in the event of a disaster or emergency.
1. Many emergencies and disasters (such as flood damage and sewer backups) require the restoration company and its employees to be working in environments in which bacteria and potential pollution is present. Typical commercial liability insurance policies exclude coverage when pollution and even bacteria are present.
2. In addition, because a restoration company is typically giving advice to their customers in the process of their cleanup (and potentially before an emergency event occurs, if the restoration company is assisting with any pre-disaster planning), the restoration company needs to carry professional liability insurance, similar to consultants, real estate brokers, and insurance agents.
An environmental combination policy was created specifically to serve restoration companies. This policy is from one insurance company (instead of having different policies through multiple carriers) and covers the restoration company for general liability, pollution liability, and professional liability, eliminating coverage gaps. Claria has an environmental combination insurance policy that protects against coverage gaps, so that we are insured for large commercial losses. Very few restoration companies carry this kind of insurance, but without it they are leaving their clients potentially exposed, because a liability claim filed against the restoration company could get denied.
Be sure to look into the insurance coverage of your chosen restoration company before an emergency or disaster happens so that you’re not left exposed in the middle of a crisis.