How unexpected environmental exposures caused by natural disasters can affect your business

From wildfires to hurricanes and volcanic eruptions, there have been several high-profile natural disasters in the United States over the past several months that have left millions affected by unanticipated environmental exposures.

On a normal day, there is a general limit to the amount of environmental exposure to pollutants that the average person will face. In the event of rapid, intense environmental changes, like those that occur during natural disasters, the rules go out the window and massive swathes of the population can be left dealing with the dangerous fallout from a storm, fire or other cataclysmic event.

Here are some recent examples of environmental exposures caused by natural disasters:

Water Contamination

Hurricane Harvey made landfall in late August 2017. Today, over a year later, coastal Texas is still in recovery mode. Damages ranged from massive fuel releases to failed electronic containment controls, leading facilities to drastically exceed chemical emissions levels. Other environmental exposures Harvey presented include mold growth and the spread of disease from flooding.

Flooding also created a dangerous water contamination problem in September 2017 as Hurricane Irma tore through Florida, causing thousands of gallons of sewage to be released across the state as septic systems and wastewater treatment facilities overflowed.

Hurricane Florence smashed into North Carolina in September 2018 and the long-term effects of this powerful storm are still being determined. So far, there have been reports of structural damage and the subsequent flooding of toxic hog-manure and coal-ash pits, which can contaminate waterways with harmful substances. According to the New York Times, Superfund sites and chemical plants are at risk of hazardous releases as well.

Air Pollution

In contrast to the flooding that has impacted the Eastern seaboard are the wildfires that have ravaged western states, presenting other dangerous environmental exposures.

Not only is smog an issue for thousands of residents of the Pacific Northwest, but there have also been reports of toxic fumes polluting the air as wildfires have hit chemical and fuel storage facilities.

Hazardous levels of air pollution have also been cited as a result of volcanic activity in Hawaii. Kileau volcano erupted in May 2018, spewing lava, ash, and volcanic smog (‘vog’) into Honolulu’s atmosphere, which has led sulfur dioxide emissions to reach unhealthy levels.

Protect A Business From Environmental Exposures

All of these environmental exposures not only create safety hazards, but also pose financial threats to individuals, families, and businesses.

There were 16 severe weather events that occurred in the U.S. in 2017, causing over $306 billion in damages. Another $6 billion in losses has been recorded as of July 2018, which does not account for recent damages caused by Hurricane Florence. Moody’s Analytics estimates anywhere from $17 billion to $22 billion or more in damages from Florence alone.

We live in a time where any business could be affected by environmental exposures, regardless of location. As environmental behavior becomes increasingly volatile, it’s important for companies to be proactive and account for the effects potential environmental exposures might have on their businesses, mainly through environmental insurance coverage.

The purpose of environmental insurance is to respond to claims for loss or damage that results from unexpected releases of pollutants. This can be especially helpful for businesses in the event of a natural disaster, as many other policies, like flood insurance and general liability insurance, often do not cover pollution exposure claims.

Over the past few years, insurance companies have worked to make environmental insurance more affordable and available to businesses at a higher risk of being affected by environmental exposures. Make sure your business is doing all it can to protect itself from the unforeseen effects of natural disasters by applying for coverage today.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes