A number of developments have affected the environmental insurance market in the last thirty years including:
- The creation of environmental regulatory “cleanup” programs, such as federal and state funded programs, voluntary cleanup, and other initiatives, such as brownfields;
- The enforcement of environmental liabilities “disclosure” requirements for US companies;
- An increased public awareness of environmental issues, and;
- Investors and other parties to a business transaction have become more familiar with environmental risk.
As a result, the types of environmental insurances have expanded significantly, with companies now being able to insure both known and unknown liabilities associated with historical and future site operations. A sampling of the different types of environmental insurances are listed below:
Cleanup Cost Cap: Indemnifies the owner and/or buyer and/or lender as an insured for financial losses that arise when the anticipated remediation costs are exceeded.
Environmental and General Liability Exposures: The policy provides a combined general and pollution legal liability coverage. It can be issued for a specific site or a portfolio of sites.
General Contractors (GC) Pollution Liability:
Designed to provide pollution coverage for general contractors resulting from contingent liability created by acts of subcontractors whose insurance can be insufficient for the GC’s protection; and incidental liability, for situations where the contractor is unaware of contaminants at a site and the process of performing the construction project causes a release of pollutants.
Secured Creditor/Creditor Reimbursement for Environmental Damages: This policy is designed to protect companies (banks) offering credit secured by real property from losses (outstanding loan balance) based on environmental claims. The policy pays for covered loans upon default when pollution conditions exist.
Storage Tank Pollution Insurance: This type of policy is designed to meet federal financial responsibility requirements. It may cover bodily injury, property damage and corrective action resulting from a release from aboveground and underground storage tanks.
MAS has established working relationships with many of the environmental insurance companies. We can provide you with a list of insurance companies to address your specific needs, help you with filing an insurance claim, and/or prepare and submit reports to your environmental insurance company in the event an environmental issue has been discovered and a claim has been filed.