Maximizing the Insurability of Your Dam

Insuring a dam is a concern faced by municipalities across New York State and other states as well. Municipal governments are liable for damage caused by release of water from their facilities, and obtaining insurance can reduce exposure to the liabilities associated with dam ownership. In order to make sure the dam in your municipality’s jurisdiction is insurable and to obtain the lowest premiums based on the facility’s management of risk, several factors must be considered. These factors extend beyond the hazard classification of your dam. Simply put, both you and your insurer must have a thorough understanding of your dam. To maximize the dam’s insurability and keep premiums reasonable, you must document that your dam is maintained, monitored regularly, operated properly and safely, and adequately designed. Maintenance and monitoring not only reduce your insurance premiums, but the housekeeping details also increase downstream safety for residents and infrastructure.