Currently, the world is seeing an average annual population growth of a little more than 1% a year. While this doesn’t sound like much, the difference is showing up in the world’s largest and growing cities with ballooning populations. This is giving way to more traffic, more utilities, more business, and more congested urban environments, and the fallout can be seen in the environmental risks that come from 7.7 billion global citizens and counting.
In fact, according to the World Health Organization, more than 12.6 million deaths each year occur because of an environmental issue, including such things as oil spills, air pollution, corrupted water, and chemical exposures. And while these risks are making it harder for people in more densely populated areas to get away from health problems, they’re also posing risks for the financial institutions that supply the funds for the responsible parties behind environmental liabilities.
Providing Coverage
When a spill occurs or pollutants are found in a water system, the cost of cleanup and restitution for property damage and bodily injury resulting from the pollutants can be sky high. But financial institutions typically only invest in general liability policies that unfortunately don’t supply the coverage needed to protect against environmental risks.
A bankers environmental risk insurance plan is a specifically designed coverage outline that works for and with banking companies. Insurance agencies like Financial Guaranty Insurance Brokers (FGIB) will work alongside several commercial pollution insurance specialists to design the right coverage for banks and their employees. A bankers environmental risk insurance policy covers both sudden and gradual pollution incidents that occur, such as oil spills that can happen instantly or slow-moving air pollution risks that happen over time, like with rising populations.
Policies can be outfitted to deal with on-site and off-site events that occur. From liquid waste remediation to wetlands damage, waterway contamination to trouble with air ducts in buildings, there’s a policy that can be catered to a financial institution’s needs. Banks that need a bankers environmental risk insurance plan to include business interruption losses or acquired properties, those can be worked in as well.
Covering the Legal Costs
Finally, when it comes to litigation, which almost certainly will happen in the event of an environmental hazard, bankers environmental risk insurance policies can provide legal defense costs on a first-dollar basis (provides full coverage for the entire value of a loss without a deductible). When it comes to long-tail coverage, it comes down to the properties that are owned by a financial institution and the operations conducted inside those buildings.
Talk with an insurance specialist to figure out the best bankers environmental risk insurance policy for your bank. Taking the time to map out the best options for a plan can make a big difference when it comes down to saving money and saving your reputation.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.