business insurance

Business Insurance and Global Warming

As business owners we focus on the bottom line and making sure our businesses are successful. We remain cognizant of world events, but can those world events effect our bottom line?Greenhouse Gases from Lucky-Frank @ morguefile.com

For example, can the issue of global warming affect profitability?

A recent article at insurancenewsnet.com (from the St. Paul Pioneer Press) suggests that environmental changes attributed to "global warming" and the long-term consequences of those changes are being tracked by several large business insurers. These insurers note that seven of the ten most expensive catastrophic losses in the United States occurred between 2001 and 2005. Lloyd's of London - an insurer that has always led the way in analyzing risk - predicts that if global warming trends continue, the U.S. could be hit with hurricanes exceeding the devastation caused by Katrina. In the aftermath, it is predicted that as many as 40 large business property and casualty insurers could go bankrupt.

What this means to your bottom line is higher premiums for property and casualty insurance or the possibility that, based on where you do business, a lack of insurers willing to offer such insurance.

However, some insurers are taking a more proactive approach and by adjusting some business practices it may be possible to lower your premium dollars with such companies. Here are some of the ways insurers are encouraging businesses to reduce greenhouse gas emissions:

* By offering premium discounts for the purchase of hybrid company cars.
* By offering premium discounts for companies that use "green construction."
* Investing premium dollars in companies that are developing clean energy.
* By offering "pay as you drive" car insurance to encourage less reliance on vehicles.