Commercial Insurance for Sustainability
by Alison Neumann

Commercial Insurance for Sustainability


Climate change and sustainability are in the news almost daily.  It is becoming more and more imperative that businesses pursue sustainable practices in their operations.  Sustainability is increasingly impacting everyone and every business.  Business owners need to keep this top of mind when looking at updating and growing their business.  Certain factors can encourage a business to renovate and grow in a sustainable way.  Some insurance factors can assist in promoting sustainable practices as well.

What benefits does becoming more sustainable have for a business?

  • Businesses that work in the sustainable market often have a lower environmental impact. This can reduce certain traditional risks associated with commercial operations that are not sustainable.
  • Certain insurance companies may offer incentives or discounts to businesses that reduce their environmental impact. Examples would be installing energy-efficient equipment, or implementing higher operating standards for ensuring the building is environmentally friendly.
  • Businesses that focus on sustainability and utilize data and technology to monitor and manage their operations can share this with their insurance companies. That could enable the risks to be more accurately measured and insurance solutions then become tailored to the business, which will reduce the risk of accidents.
  • Growing the sustainable practices in a business can increase the number of customers and enhance a business’s reputation. People who value sustainability are more likely to seek out businesses that practice green strategies.

Running a business in a sustainable manner can positively impact insurance premiums, coverage options, and the overall business strategy and culture.  It is crucial to consider sustainability as an integral part of the world, and the business world today.  Sustainability will continue to evolve rapidly, as the importance of being green in all aspects of life increases.

Making sure you are properly insured will give you peace of mind when accidents do happen.  To explore sustainable insurance options, or for any insurance inquiries, contact your agent today.

DISCLAIMER: Coverage for the exposures mentioned in this blog post is dependent on the specific policy language of each individual policy and adjuster review determining the cause of loss.

References:

https://www.lexology.com/library/detail.aspx?g=503105c1-f20e-4969-abd1-e8df83139ac8

https://online.maryville.edu/blog/importance-of-environmental-awareness-when-running-a-business/#:~:text=You%20can%20earn%20more%20money,of%20money%20sustainable%20businesses%20earn.

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