The old adage that insurance is a product you buy with the hopes you never have to use it is never truer than when purchasing liability insurance in the event of a slip-and-fall claim. However, snow and ice contractors may not realize they are vulnerable to liability in other areas within their businesses, and relatively inexpensive insurance coverage could save them from a costly resolution if a claim is ever filed, says Noah Sherman, regional vice president with Mills Insurance Co.
Three areas for liability vulnerability have been trending in small-business circles, Sherman says, and snow and ice management contractors need to take notice, as well.
Contractors Pollution Liability (CPL)
Coverage includes bodily injury, property damage, defense, cleanup, and related defense costs as a result of pollution conditions. For the snow and ice industry, vulnerabilities run the gambit from salt leeching to chemical spills. “These policies are very cheap and can save you a fortune down the road, especially if environmental clean-up costs are involved, which can be astronomical,” Sherman says.
If you conduct business over the Internet, then you’re at risk. If you manage personal data, client information, credit card numbers, etc., then you’re vulnerable to data breeches by a hacker who gains access for the purpose of damage, theft, disruption or corruption of your electronic data, Sherman says.
Employment Policies (EPLI)
Employment practices liability is generally not covered by general liability insurance. Vulnerabilities includes work-related issues such as harassment, wrongful termination, breach of contract, and discrimination, to name a few.
Cyber and EPLI (discrimination/harassment) claims have jumped dramatically over the past 2-3 years, says Josh Ferguson, co-chair of the Philadelphia and New Jersey offices of Freeman Mathis & Garry LLP and general counsel to the Accredited Snow Contractors Association.
“Those are both areas in which (insurance) carriers used to provide add-ons,” he says, “but, given the heavy uptick in claims, [they] have changed course.”