Bedbugs – Insurance Risk

Environmental Risks In INSURANCE



What You Need to Know

Bedbugs are brown, oval, flattened and up to ¼” in size and are attracted to carbon dioxide and body heat

One female can lay 12 eggs/day or more and can live for a year without eating

Bites often occur as a series of 3-“breakfast, lunch, and dinner” most often on shoulders and extremities

Most often found in wood, furniture, carpeting, wall cavities, inside clocks, phones, computers, baseboards, clothing

Evidence- blood, sweet musty odor

What You Need to Do

Seal cracks, crevices, correct structural deficiencies, to reduce infestation potential

Have professional bedbug expert on contract with 24/7 availability

Educate occupants/staff and encourage “speak up” program

Be alert as reintroduction is a constant threat

Myths and Misconceptions

Bedbugs are attracted to dirt, food, and poor housekeeping-FALSE

Bedbugs rarely transmit and/or carry disease-TRUE

“Bug Bombs” or total release aerosols are effective against a bedbug infestation-FALSE

Commercial buildings, as well as residential buildings are often infested with bedbugs-TRUE

Expert Services:

Claims: Prevention and Response

  • Site Investigations/Inspections
  • Loss Mitigation Protocol Development
  • Creative Scope of Work Development
  • Project Oversight
  • Environmental Sampling
  • Cause and Origin Investigation
  • Emergency Response
  • Client Interface
  • Communication/Alert Development
  • Liability Exposure Minimization
  • Expert Consultation

Underwriting: New Product Development and Risk Assessment

  • New and Emerging Risk Education-Focus on New Areas of Coverage Opportunity
  • New and Emerging Product/Technology Applicability to Underwriting Coverage
  • Recommendations for Coverage Expansion Based on Risk Minimization Strategies
  • Policy Language Review/Development Based on Industry Specific Issues

Due Diligence: Investigation, Auditing, Verification and Risk Assessment

  • Project Oversight Ensuring Compliance with Policy Coverage
  • Immediate Communication re Project Issues Impacting Policies
  • Detailed Reports of Project Findings/Oversight with Recommendations
  • Cost Estimate Development Based on Construction/Remediation Options
  • Phone Surveys/Desktop Reviews Focusing on Issues of Potential Concern

Remediation Cost Auditing and Risk Quantification

  • Review/Audit of Contractor Invoices
  • Scope of Work Performed Analysis (Best Practices, Regulatory Compliance)

Expert Testimony

  • Environmental Risk
  • Healthcare Risk

Education and Training: Claims and Underwriting

  • Seminars/Webinars on Environmental/Healthcare Issues Focusing on Claims/Underwriting Risk
  • Seminars/Webinars on Emerging Issues and Policy Impact as well as Coverage Expansion Opportunities
  • White Paper Development

Insurance Toolkits: Claims and Underwriting

  • Development of Underwriting Applications for Healthcare/Environmental Risk
  • Development of Value Added Risk Management Checklists/Protocols for Insureds
  • Operations and Maintenance Programs for Water Intrusion Risk Management, Asbestos, Lead Based Paint
  • Hazard Assessment Critical Control Point Programs (HACCP)

Insurance Risk Alert Service

  • Development of Insured Alert Communications re Emergency Healthcare/Environmental Risk
  • Development of Employee Alert Communications re Emergency Healthcare/Environmental Risk