Ontario asbestos law could elevate claims costs if risks not mitigated

New Ontario regulations dealing with the handling of asbestos could affect insurers’ costs should asbestos be the subject of a claim.
Regulation 278/05, which came into effect on Nov. 1, 2005 (the final two sections kicked in on Nov. 1, 2007), governs all work that disturbs or is likely to disturb asbestos-containing material (ABM) in provincially-regulated buildings.
Andreas Wagner, principal of Golder Associates Ltd., told delegates about the changes at the Ontario Independent Adjusters’ Association’s (OIAA) Professional Development & Claims Conference in Toronto on Jan. 30.
According to Wagner, the regulations apply to all Ontario contractors dealing with commercial and residential properties. They cover situations in which asbestos is present and workers may be involved. All areas must be tested for the presence of asbestos if a contractor is involved.
If asbestos is present, the cost of an insurance claim could increase if certain risks are not managed properly. Measures mandated to mitigate risk include:
increased protection required for workers,
signage indicating the presence of asbestos, and
the potential establishment of a separate enclosure to seal the area and disposal of the asbestos.
When dealing with an asbestos claim involving a residence, the hired contractor and not the homeowner should be determining whether or not asbestos is present and where.
In a commercial setting, the building owner must notify the contractor of all asbestos present, Wagner said.