How Asbestos Affects Building Insurance
Asbestos in a commercial building is a material fact that affects the risk assessment of every building insurance policy. Insurers need to know about asbestos because it creates potential liabilities: the cost of dealing with asbestos if the building is damaged (fire, storm, flood), the risk of third-party injury claims from exposure, and the potential for environmental contamination claims if asbestos fibres are released.
The presence of asbestos does not make a building uninsurable — many commercial buildings across Ireland that contain asbestos are insured without difficulty. However, it can affect the terms, conditions, and premiums of the insurance policy. Buildings with unmanaged asbestos — no survey, no register, no management plan — are at higher risk of premium loading, restrictive conditions, or in extreme cases, coverage refusal.
Buildings with properly managed asbestos — survey completed, register maintained, management plan in place, and encapsulation or other remediation carried out — present a much lower risk to insurers. Encapsulation in particular demonstrates proactive risk management that insurers view favourably.
Disclosure Obligations
Commercial policyholders are expected to disclose material facts — information a prudent insurer would want to know when deciding whether to cover a risk and on what terms. The presence of asbestos in a building is one of those facts, so tell your insurer or broker about it and check your policy wording.
What you should disclose includes: the fact that asbestos is present, the type and location of ACMs (from your asbestos survey), the condition of the ACMs, and what management action has been taken (monitoring, encapsulation, removal, management plan). If asbestos has been encapsulated by a certified contractor like Duratite, this is positive information that should be proactively shared with your insurer.
Failure to disclose asbestos can have severe consequences. If a claim arises and the insurer discovers undisclosed asbestos, it may refuse or reduce the claim, or in serious cases treat the policy as void. Either way, the financial consequences can be devastating.
How Encapsulation Changes the Risk Profile
From an insurance perspective, asbestos encapsulation materially reduces the risk associated with the presence of ACMs:
Reduced fibre release risk. Encapsulated asbestos cement cannot release fibres under normal circumstances. The spray foam or silicone coating creates a permanent physical barrier. This reduces the risk of occupier exposure claims and environmental contamination claims.
Reduced clean-up cost after building damage. If a building with unencapsulated asbestos is damaged by fire, storm, or impact, the clean-up involves asbestos decontamination — a very expensive process. With encapsulated asbestos, the fibres remain sealed even if the building is damaged, significantly reducing decontamination costs.
Improved building condition. Encapsulation with Nexseal LE or GacoFlex S42/SF42 improves the physical condition of the building — adding structural reinforcement, waterproofing, or thermal insulation. Insurers rate buildings in better condition at lower risk.
Demonstrated management competence. Proactive encapsulation shows the building owner takes risk management seriously. Insurers reward good risk management with better terms and lower premiums. The alternative — ignoring asbestos or implementing only the minimum "monitor and manage" approach — signals higher risk tolerance.
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Property Transactions and Surveys
Asbestos is a significant factor in commercial property transactions. Buyers' solicitors routinely raise enquiries about asbestos, and commercial building surveys identify ACMs as a matter of course. The presence of unmanaged asbestos can reduce property values, delay transactions, and provide leverage for price renegotiation.
Encapsulation with a transferable manufacturer-backed product warranty (20 years for silicone coating) addresses these transactional issues directly. The buyer acquires a building where the asbestos has been professionally managed, with a warranty that transfers to the new owner and documentation that satisfies their surveyor, solicitor, and insurer. This removes asbestos as a negotiation point and supports the property valuation.
For sellers, encapsulating asbestos before marketing the property can be a shrewd investment. The cost of encapsulation is often less than the price reduction a buyer would negotiate for unmanaged asbestos, and the property becomes more attractive to a wider pool of buyers.
Professional Indemnity for Contractors
When selecting an encapsulation contractor, verify that they hold adequate professional indemnity (PI) insurance and public liability insurance. The PI insurance protects you if the encapsulation system fails due to contractor error — for example, incorrect specification, poor application, or use of unsuitable products.
Duratite holds professional indemnity and public liability insurance. Installers carrying out encapsulation have recognised asbestos awareness training, and the product warranties are backed by the manufacturers. Together, these layers protect building owners against application failures and product defects.
Warranty and Guarantee Coverage
Duratite provides two layers of warranty on every asbestos encapsulation project:
Product warranty: Nexseal LE and GacoFlex S42/SF42 carry manufacturer-backed product warranties (20 years for GacoFlex S42/SF42) covering material defects and performance degradation. These warranties are transferable to subsequent building owners.
Workmanship warranty: Duratite provides a workmanship warranty covering the installation quality. This covers defects in application, adhesion, thickness, and coverage. The workmanship warranty is typically 10–15 years, matching the expected life of the installation team's involvement with the project.
Both warranties require compliance with the maintenance inspection schedule — periodic checks to verify the encapsulation system is performing as intended. This is a standard warranty condition that protects both parties.
Contact Duratite on info@duratite.ie to discuss insurance requirements for your encapsulation project.