Frank Pingelski, CLCS

While many associate environmental liability with heavy industries like manufacturing and construction, the truth is that a wide array of sectors face significant, often overlooked, pollution exposures. Ignoring these hidden risks can lead to devastating financial and reputational consequences.

Let’s explore how environmental liability extends far beyond the obvious.

Real Estate: More Than Just Location, Location, Location

The real estate industry carries substantial environmental risks that go beyond leaky pipes. Consider the potential for soil and groundwater contamination from past land uses, such as former gas stations or dry cleaners. Even seemingly innocuous activities like landscaping can introduce pesticides and herbicides into the environment, leading to liability issues down the line. Asbestos in older buildings, lead paint, and mold growth also present significant environmental hazards that property owners and developers must address. A knowledgeable insurance broker can help assess these risks and secure appropriate coverage.

Agriculture: Cultivating More Than Just Crops

Agriculture, while vital, also presents various environmental liabilities. The use of fertilizers and pesticides can lead to water pollution and soil degradation. Animal waste management poses risks of nutrient runoff into waterways and the release of greenhouse gases. Even seemingly sustainable practices can have unforeseen environmental consequences. Farmers and agricultural businesses need to understand these exposures and work with an experienced insurance broker to develop robust risk management strategies and insurance plans.

Healthcare: A Duty to Care Extends to the Environment

The healthcare industry, focused on healing and well-being, also faces environmental liabilities. Hospitals and medical facilities generate various hazardous wastes, including pharmaceuticals, chemicals, and infectious materials. Improper disposal of these substances can lead to soil and water contamination, impacting both the environment and public health. Furthermore, the increasing focus on sustainability and reducing carbon footprints adds another layer of environmental responsibility. Healthcare organizations need to partner with a qualified insurance broker to ensure they have adequate environmental liability coverage.

Beyond the Obvious: Other Hidden Exposures

The list doesn’t end here. Even seemingly low-risk industries can face unexpected environmental liabilities. Educational institutions might encounter issues with laboratory waste or asbestos in older buildings. Retail businesses can be held responsible for improper disposal of electronic waste or spills of cleaning chemicals. Service industries might face liabilities related to vehicle emissions or the use of hazardous materials in their operations. A proactive approach, guided by a trusted insurance broker, is essential for identifying and mitigating these hidden risks across all sectors.

Strategies for Managing Environmental Risk

Understanding your environmental exposures is just the beginning. To truly protect your organization, proactive steps must be taken to minimize potential liabilities. Here are some practical strategies companies across all industries can implement:

• Conduct Regular Environmental Audits: Periodically assess your operations, facilities, and past property use to uncover potential environmental risks before they become liabilities.

• Implement Preventative Policies and Procedures: Develop clear protocols for handling hazardous materials, waste disposal, equipment maintenance, and emergency response. Train employees regularly to ensure compliance.

• Stay Current with Regulations: Environmental laws and guidelines are constantly evolving. Work with industry experts or legal counsel to ensure your business stays compliant with local, state, and federal requirements.

• Invest in Sustainable Practices: Reducing your environmental footprint not only helps the planet—it can also reduce exposure. Consider low-impact materials, efficient waste management systems, and green technologies.

• Maintain Comprehensive Insurance Coverage: Tailored environmental liability insurance is essential, especially for industries with hidden or indirect exposures. Partner with an experienced broker who understands your sector’s unique risks and can match you with appropriate coverage.

• Develop a Crisis Management Plan: Even with precautions, incidents can occur. Having a clear, actionable response plan—including communications and remediation procedures—can significantly reduce the long-term impact of an environmental event.

By integrating these strategies into your operations, you can demonstrate environmental responsibility, reduce potential liabilities, and protect your organization from unforeseen challenges.

Protecting Your Future

Don’t let hidden environmental risks jeopardize your business or future. Tooher-Ferraris Insurance Group provides comprehensive insurance solutions tailored to your specific industry needs.

Contact us today to discuss your unique business situation.

A Stabilizing Market, But Caution Ahead

After several years of declining rates and increasing competition, the Directors and Officers (D&O) liability insurance market is showing signs of stabilization. While pricing has largely remained flat or slightly lower during the first half of 2025, Tooher-Ferraris Insurance Group advises businesses not to be complacent. Economic shifts, evolving litigation, and new regulations are once again changing the way organizations must approach environmental risk.

Rate Trends and Market Behavior

Recent industry data confirms that D&O policyholders have enjoyed relatively steady premiums, with average rate decreases of 1.7% across five consecutive quarters. Public companies, in particular, have benefited from more favorable pricing, occasionally seeing rate reductions approaching double digits.

However, private and nonprofit organizations are not seeing the same advantages. Insurers continue to assess these entities as higher risk, leading to inconsistent pricing and more restrictive terms. Underwriters are growing increasingly cautious, aiming to maintain sustainable pricing models amid signs of mounting losses.

Economic Pressures Fuel Risk

The broader economic environment is placing added pressure on companies and their leadership. Persistent inflation, higher interest rates, and supply chain issues stemming from new U.S. tariffs have strained financial performance across multiple industries.

These challenges have contributed to a rise in bankruptcy and insolvency. Chapter 11 filings jumped 52% from 2023 to 2024, and the first quarter of 2025 saw over 144,000 bankruptcy filings. These events often give rise to D&O claims, particularly when shareholders or creditors allege mismanagement or breach of fiduciary duties.

Litigation Continues to Mount

The volume and size of derivative and securities class-action lawsuits have grown significantly. Nearly three-quarters of the largest shareholder derivative settlements—those exceeding $100 million—have occurred within the last five years. Securities class-action filings alone rose 15% in 2024.

At the federal level, the regulatory environment is shifting. President Donald Trump’s recent appointment of a new SEC chairman has already influenced policy changes, including the rollback of disclosure rules related to climate risks and greenhouse gas emissions. An executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA) may also impact exposure for public and private companies.

These changes may reduce the number of ESG-related D&O claims in the short term, but they don’t eliminate other emerging threats.

Artificial Intelligence Regulations Raise New Concerns

New legislation focused on artificial intelligence is becoming a critical consideration for boardrooms. The European Union’s AI Act and similar state-level regulations in the U.S. impose strict standards regarding bias, data transparency, and ethical use. Companies that fail to comply could face intense regulatory scrutiny and subsequent lawsuits.

Tooher-Ferraris Insurance Group encourages leaders to be transparent about their use of AI and proactive in addressing any risks associated with automation, data handling, and algorithmic decision-making.

What to Expect in the Second Half of 2025

As the year progresses, expect the D&O market to gradually firm. While premiums may remain flat or slightly reduced for some accounts, insurers are likely to pull back on underpriced renewals and impose tighter underwriting standards. Carriers with experience and established portfolios are focused on long-term sustainability, which may result in increased premiums or reduced coverage in certain sectors.

Policyholders should prepare for:

• A tighter underwriting environment
• Possible increases in premiums for higher-risk profiles
• Greater scrutiny of governance practices
• The need for compliance with complex and expanding regulatory frameworks

Tooher-Ferraris: Your Partner in Navigating Market Shifts

With decades of experience guiding companies through challenging insurance needs, Tooher-Ferraris Insurance Group is uniquely positioned to help businesses mitigate their D&O risks. Our team monitors legal, regulatory, and market developments to ensure your organization stays protected and well-informed.

Connect with us to evaluate your current D&O coverage, identify areas of vulnerability, and prepare for what lies ahead in 2025.

When workers’ compensation expenses begin to rise, it often prompts employers to look for immediate ways to cut insurance costs. But the real solution goes beyond simply reacting to claims. A proactive approach that prioritizes safety and continuous improvement is the key to long-term savings. With the right strategy, businesses can reduce injuries, improve compliance, and lower workers’ compensation premiums.

Tooher-Ferraris Insurance Group works closely with employers to design safety programs that not only meet regulatory standards but also enhance workplace culture and productivity.

Here are five essential strategies to help control and reduce workers’ compensation costs:

1. Build a Strong OSHA-Compliant Safety Program
A solid foundation begins with complying with OSHA standards. Many workplace accidents result from overlooked requirements—slippery floors, missing personal protective equipment, or improper lifting techniques.

By developing and documenting required OSHA programs, then clearly communicating them to employees, businesses can significantly lower the risk of incidents. Companies with well-documented and enforced safety protocols tend to experience fewer injuries, higher productivity, and reduced insurance costs.

2. Integrate Safety into Daily Operations
A written policy alone will not deliver results. To make an impact, safety must become part of everyday operations. This requires a deliberate effort to involve all levels of the organization, especially frontline supervisors.

Supervisors are critical to the success of any safety initiative. When they are trained and equipped to lead safety programs, the organization benefits from consistent execution and accountability. The most effective programs are led by supervisors who understand safety expectations and actively engage their teams.

Tooher-Ferraris Insurance Group offers tools and resources to support safety training and help build a culture where best practices are reinforced every day.

3. Investigate Every Injury and Illness
Each workers’ compensation claim increases your insurance costs. The best way to reduce claims is to prevent accidents from happening in the first place. That starts with thorough investigations, not just reports.

Accident reports document what happened. Investigations uncover why it happened. By identifying the root cause, businesses can implement meaningful corrective actions that prevent future incidents. This applies to all accidents, even those involving minor first aid.

For every 100 workplace accidents, statistics show only 10 are recordable and one involves lost time. Ignoring minor incidents leaves most issues unaddressed. A strong safety culture investigates every incident to identify patterns and make necessary improvements.

4. Train Employees and Supervisors for Competence
Effective training is essential to safety and cost control. Employees must understand their responsibilities and how to perform tasks safely. Supervisors must be competent in integrating safety procedures into their departments.

Training should be practical, role-specific, and reinforced regularly. A workforce that is well-informed and confident in safe work practices is less likely to experience accidents and more likely to contribute to a high-performing organization.

5. Audit Regularly and Commit to Continuous Improvement
Even the best safety programs can become outdated if not reviewed. Regular audits help identify gaps, reinforce accountability, and ensure continued compliance with OSHA standards.

A competency-based safety program encourages employee engagement, improves morale, and supports retention. When employees feel safe and valued, they are more productive and loyal. Companies that continually evaluate and refine their programs often experience fewer accidents and stronger bottom-line results.

The Tooher-Ferraris Advantage

Tooher-Ferraris Insurance Group partners with businesses to develop and maintain effective safety programs that align with operational goals. Our solutions include OSHA compliance support, training resources, and tools for incident investigation and auditing. We help you uncover risks before they lead to costly claims.

If you’re looking to reduce your workers’ compensation costs and create a safer workplace, contact us today. Let us show you how a focused and proactive approach to safety can protect your employees and your bottom line.