Is Asbestos Covered by Insurance?

 
 

It’s not our fault that our homes contain asbestos. Some manufacturers, builders, and people in positions of power before us decided that asbestos, a natural mineral, was an excellent additive to many products and materials.

They didn’t know it could have serious health consequences or that it could be something we have to spend money to have removed from our homes. So, given that asbestos isn’t our fault and it costs money to remove it, you might wonder if asbestos is covered by insurance. We’ll answer that question and others below.

Is Asbestos Covered by Insurance?

We can’t speak for all insurance companies, but if you’re asking that question of home insurance policy providers, the answer tends to be no.  

Typically, an entire section of home policies is dedicated to what they won’t cover, and asbestos is often present on that list. An example of that would be the Kiwi Insure House Insurance Policy.

This policy outlines that ‘we won’t cover you for any loss or liability caused by asbestos, asbestos products, and asbestos contained within any items.’

This statement can also apply to additional policy benefits and optional policy benefits. In short, insurance companies don’t want to cover something we no longer use, and that is considered dangerous.

 

Do Any Insurance Policies Cover Asbestos?

While a homeowner may not receive coverage for asbestos in their house insurance policy, that doesn’t mean asbestos isn’t covered by insurance in other policies. For example, let’s take a look at environmental and pollution liability.

This insurance type tends to suit a wide range of professional groups, such as:

  • Remediation contractors – asbestos removal, crime scene cleaners, amphetamines, emergency clean-up, and more

  • Building trades – gas fitting, electrical, plumbing, roofing, building, and more

  • Healthcare

  • Demolition

  • Agriculture and horticulture

  • Real estate, including building managers

  • Government bodies

  • Redevelopment projects

  • Oil, gas, drilling, and mining contractors

  • Heavy manufacturing

  • and more…

In these industries, your environmental and pollution liability may cover you for:  

  • Asbestos-related incidents

  • Sudden, gradual, and accidental pollution incidents

  • Emergency response expenses related to contamination and damage containment and remediation

  • Defence costs

You may be covered for property damage, bodily injuries, and environmental damage caused by pollution incidents at locations owned or operated by you or at a location where you’re providing a service.

Such a policy can give business owners much-needed peace of mind that they can be compensated for the costs associated with asbestos if something happens.

 

Why Can Asbestos Insurance Be So Important?

If you’re a business dealing with asbestos, having a form of asbestos insurance can be crucial. Sure, it’s another business cost you possibly wouldn’t mind avoiding, but it can be worthwhile for the following reasons:

 

Asbestos Poses a Hazard

It can be an incredibly complex undertaking to safely remove, package, transport, and dispose of asbestos. Something can go wrong during any part of the process that leads to significant health or environmental problems.  

The expenses related to a complication with asbestos can be in the hundreds of thousands, if not millions of dollars. As a result, have the appropriate asbestos insurance cover can be a weight off your mind.

 

It’s Still Common

Any tradesperson working in a home or business built before 2000 could be at risk of asbestos exposure. It’s so common to find, even where you least expect it. Being covered for any eventuality can give you peace of mind as a business owner.

 

Strict Regulations Apply

There are strict regulations for how asbestos can be handled, removed, and identified. However, with so many people involved in the process, there is always a risk that one party will not fulfil its legal obligations.

If there’s even a slight chance this could ever happen to your business, having asbestos insurance may be helpful to cover litigation costs. However, every policy differs in whether they cover these or not.

 

What Are the Risks Associated With Asbestos Exposure

Asbestos insurance policies in NZ may help cover the costs of asbestos-related incidents, but they can’t stop asbestos from being a danger to human health. Short and long-term exposure may put you at risk of related health conditions such as lung cancer, asbestosis, mesothelioma, and pleural disease.

Between 1954 and 2011, 1696 mesothelioma deaths were recorded in New Zealand. Researchers also predicted that 12,000 people could die from asbestos-related illnesses, with that toll peaking back in 2015.

Get Help With Your Asbestos Problems

It can be tempting to remove asbestos from your home by yourself. After all, you might just see it as another renovation project. However, trained experts can be one of the best options for this task.

They have the appropriate licences to undertake the work and insurance to protect both themselves and those they work for. Before construction and renovations get underway, contact asbestos removal experts to find out how they can help.

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