New York Business Insurance Exposure #2: Green Project in the RED
Owning a business is the American dream. But that dream can quickly become a nightmare if you’re hit with a catastrophic expense.
For example, let’s say you own a New York construction business that has just finished renovating a 100-year-old building. You assured the city that your renovations would not increase the environmental impact because you used green practices and energy efficient products. The city agreed, but stipulated that the building would be inspected after your renovations, and if it failed to meet their green standards, you would owe them a BIG annual fine.
Now, a year later, your building has failed to perform as promised, and you’re facing a $1 million fine every year for the life of the building, completely wiping out your construction company’s profits.
How can you avoid this unexpected exposure?
- Avoid all construction projects with green requirements.
- Try to shift the blame to subcontractors.
- Think proactively to protect your profit before you’re hit with a claim.
If you chose proactive thinking, you are a wise business owner. These days, green projects are unavoidable. Most cities are encouraging businesses to reuse, recycle and reduce environmental impact. In fact, by 2014, green jobs are expected to comprise 45% of design and construction projects. This means that whether you’re a construction company, a property management company or a building supply company, you’re going to encounter new exposures that you never had to worry about in the past.
Don’t get caught without adequate insurance coverage and lose what you have worked so hard to achieve. An ounce of prevention is worth a pound of cure.
If you found this scenario interesting, make sure to download our free business insurance report and learn about nine other unexpected New York business insurance exposures that can happen in the blink of an eye.
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As always, you can count on Milbrandt Insurance, your New York insurance resource, to protect your business. Learn more about business insurance services here.