The Relation Between Coal and Insurance
With the potential cause for an increase of natural disasters being global warming, insurance carriers have become hesitant to continue providing coverage for coal miners.
Some researchers believe that the cause for the increase in natural disasters has something to do with the rise is greenhouse gasses in our atmosphere. Read more about this here and here.
The rise in greenhouse gasses causes the gradual increase in average temperatures. Then, what causes an abundance of greenhouse gasses?
Greenhouse gasses, such as Carbon Dioxide and Methane, are gasses that trap heat when present in the atmosphere. These gasses are produced by a series of human activities, such as: when fossil fuels are burned to heat our homes and start our vehicles, using manure to fertilize crops, deforestation, etc. Some scientists believe that the increased use of fuel over time has caused the temperatures on Earth to rise at an exponential rate as compared to earlier years. Other scientists disagree, stating we haven’t tracked the temperature change far back enough to recognize a major difference. Nevertheless, the increase in natural disasters and unique weather changes speaks for itself.
Nearly half of greenhouse gas emissions come from the burning of coal. This makes coal the substance creating the most pollution in our atmosphere. Insurance carriers are starting to see the risk of insuring the coal industry. Supporting an industry that could potentially be contributing to the cause for excessive natural disasters is a high risk move. Natural disasters, such as hurricanes and wildfires, create the most expensive claims for insurance companies.
Insurance companies have begun to cut or, in some cases, eliminate coverages for companies receiving income from the coal industry. The pressure is being put on the coal industry to help reduce the greenhouse gas emissions in our atmosphere.
By: KayLynn
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2010 Crow Canyon Place, Suite 100 San Ramon, CA 94583
1-925-683-9743
CA License #0B30027
© Copyright 2024 Michael Smith Insurance Solutions | All Rights Reserved
Site by ICA Agency Alliance