| Mike's Comments |
Jun 18, 2009The environment and Insurance: Here's something that I hadn't really thought of, but there is a direct link between 'best practices' for the environment and 'best practices' for Insurance and Risk Management. An example in a recent trade publication pointed out the benefits of rain barrels. They are of benefit for the environment by reducing municipal water usage (less water needs to be treated since demand is lower), and it is better for the plants as it's a 'natural source' of water(ever notice how much more your lawn responds to rain water rather than sprikler water?). For insurance and risk management purposes they are also of benefit since they reduce the amount of water hitting the sewer system during heavy rainfalls, and therefore would reduce the likelihood of sewer backups into basements of homes - a very nasty and costly cleanup job. Fewer losses equals better insurance rates and coverage availablilty, so it's a win-win situation. Another example is fire prevention. When a car, home or business goes up in flames, not only does it cause a financial loss and possible loss of life, it can cause major environmental damage as well. Just imagine the pollution released when a car burns - oil, battery acid, gasoline, tires etc spewing toxic fumes into the atmosphere. Simple steps like having an extiguisher in your car and home as well as smoke detectors and alarm systems, can reduce the amount of damage and injury and also help the environment. As with most 'best practices' concepts, in the long run, there are often unexpected benefits of taking the right actions and often small measures taken on a large scale can make a major difference. Food for thought. Michael Stuart, BBA, FCIP, CRM, CAIB Grant, Jones & Stuart Insurance Brokers |