Section 44 Insurance

• Library: Environmental Law 2002 Supp Replacement chs

Changes in the insurance industry market have made available certain insurance policies that can help stem environmental costs and provide protection for unknown environmental problems. Readers should be aware that this market is ever changing and that additional products, or a combination of the products listed, may be available depending on the transaction. Readers are advised to consult an insurance broker regarding site-specific needs and specific policy design to address the issues at a given site. These policies can act in place of or as a complement to indemnification and other cost-shifting measures. The policies are written in a site-specific manner, tailored to the risk. As such, these policies may make a Brownfields redevelopment project more feasible because they may assuage the concerns of potential lenders or users of the property.

Because the policies are site specific, the developer should review the types of insurance available and fit them with identified risks for the site to be developed. Specific insurance products are discussed briefly below.

Historically, environmental insurance was available during the 1970s from as many as 25 carriers, but this changed during the mid-1980s as a result of claims made against policies as a result of Superfund enforcement. Exacerbating the problem was that general liability...