It’s been, roughly, a quarter-century since widespread asbestos installation in the United States came to an end, but the ramifications of its use are still being felt today. While the US has not banned the use of asbestos completely, it is no longer used as a form of insulation in construction projects. The shift away from the use of asbestos came at the turn of the 1990s. Of particular interest is the fact that, many of the buildings constructed during that time are now being demolished or renovated, which exposes workers to the air-borne particles that can cause ailments such as lung cancer and mesothelioma.
These incidents often lead to Worker’s Compensation and General Liability claims against the employer or building owner. Public awareness of the dangers of asbestos exposure is greater than ever due to incessant legal advertisements. Construction contractors and property owners would be wise to remain informed on the risks that asbestos exposure poses to their business and how these risks can be managed.
As mentioned in a recent opinion editorial piece in the Wall Street Journal, asbestos litigation has hit an all-time high. This is not to imply that the harm done to the claimant is not severe, but class action tort claims have sought large multiples of actual damages in the form of punitive damages on the basis that the defendants (employers or building owners) were aware of the risks.
It is no surprise that the cost of defending and, possibly, settling an asbestos related claim is high, but what is surprising is that construction companies and property owners are not doing more to prevent the claims all together. Several steps can be taken to mitigate the risks of an asbestos related claim.
The first, and most apparent step, is ensuring that any new construction not include the use of asbestos as an insulator. This would, of course, eliminate the risk of any future claims, however, it is not practical or relevant when parts of an existing building must be torn down in order to renovate it. In this instance, it is most prudent to employ a contractor, specifically, for the purpose of sampling the area and carefully removing any asbestos from the construction site. The removal should be performed prior to any other work being done by other contractors and the asbestos contractor must sign off on the official completion of asbestos removal.
Property owners are advised to consider purchasing, or requiring their contractors to obtain, project specific insurance that includes coverage for asbestos related claims. This coverage could be expensive if a risk of asbestos exposure is made known. However, the expense can be reduced with proof of proper safety procedures and the engagement of an experienced asbestos removal contractor.
Doing this could help mitigate any potential claims as they occur. Additionally, property managers should ensure that proper indemnification language is included in their construction contracts so that no liability can flow back to the property owner. The contract should mandate that the property owner will not be held liable for any potential asbestos related claims.
Ultimately, confirming that the insurance provides coverage for asbestos related claims and contains appropriate language is essential in reducing the risk for, both, contractors and property owners.
Click here to request more information about The ALS Group or managing your project risk and compliance.
