Are You Feeling Lucky?

By: David Dybdahl

Plumber subcontractors, drying category 3 water, lead abatement, mold abatement, and asbestos abatement are the top five environmental loss exposures in the cleaning and restoration business in order from most risky to least. The only practical way to manage these loss exposures is to purchase a high-quality Contractors Pollution Liability policy and ask plumbers for CPL coverage.

Knowing what your high-risk operations are will go a long way toward sustaining your business over time. Every day, the owners of restoration firms take on risks in the hopes of making a profit. If everything works out as planned, high-risk activities should earn a high rate of profit; otherwise, why take on the risk?

Owners also work to manage the risks in their business. In general, it is a good idea for owners to manage the higher-risk activities closer than activities that are relatively low risk. Where owners get into trouble is when the perceived risk is considered lower (nothing to be concerned about) than the actual risk (a company buster). 

Test your knowledge on relative risk in the restoration business. Rank the following from 1-5, with “1” being the most risky business activity:

  • Asbestos Abatement
  • Mold Abatement
  • Lead Abatement
  • Drying Category 3 Water
  • Hiring a Plumber Subcontractor