As facilities across the country continue to age, managers and leadership are facing a new kind of pressure: rising insurance premiums. For industries that rely heavily on robust infrastructure, these increased costs can be significant. One of the key culprits behind these hikes? Outdated and deteriorating infrastructure.
Why Aging Infrastructure Impacts Insurance Premiums
Insurance providers calculate premiums based on risk—and aging infrastructure increases that risk. Providers are adjusting their risk models based on the frequency and cost of claims linked to infrastructure failure. That means facilities with older, unassessed, or poorly maintained sewer systems are being flagged as high risk, leading to:
- Increased premiums
- Reduced coverage or exclusions
- Higher deductibles for water damage or environmental cleanup
Signs Your Infrastructure May Be a Liability
If your facility was built decades ago and hasn’t undergone recent assessments, it’s likely your infrastructure is no longer functioning as it should. Common issues we encounter include:
- Flooding due to backed-up stormwater drains
- Contamination of production spaces from broken pipes
- Emergency shutdowns from pipe collapses or failures
- Mold and structural damage
These problems not only affect performance—they can put your facility at financial risk.
What This Means for Facility Leadership
- Premium Hikes Are Likely If You Don’t Have a Maintenance Plan
Insurers often request infrastructure maintenance records or risk assessments. If you can’t show documentation, expect higher costs. - Emergency Repairs Cost More—Both Short and Long Term
Unplanned failures lead to rushed service, lost productivity, and higher insurance claims—triggering another round of premium increases. - Proactive Infrastructure Investment Can Offset Rising Costs
Insurers reward risk mitigation. Investing in inspections, repairs, and upgrades—especially trenchless rehabilitation methods—can strengthen your facility’s insurance profile.
At Ellingson, our team uses advanced diagnostic tools to inspect your current systems and recommend cost-effective solutions. We tailor our approach to meet your needs—and protect your bottom line.
Assessment Services:
We use camera inspections and diagnostic tools to give you a clear picture of your pipe systems and their condition.
Documentation:
Our detailed reports help support your conversations with insurance carriers and demonstrate your commitment to proactive risk management.
Trenchless Rehabilitation:
Our no-dig solutions allow you to upgrade critical systems with minimal operational impact.
Protect Your Facility
As insurance costs continue to climb, staying ahead of potential infrastructure failures is more important than ever. Don’t wait for an emergency to take action.
Contact Ellingson today to schedule an infrastructure assessment and keep your facility operating efficiently for years to come.
Disclaimer: Please consult with a licensed insurance professional or your insurance carrier for guidance specific to your facility and policy coverage.