I have been quite busy helping clients mitigate environmental risk and assist them in their development projects.
Every deal is generally different but the following circumstances abound: 1)Known Contamination (soil and or groundwater) has not been fully delineated - on or off site; 2)Potentially responsible party has not been identified and no environmetnal indemnity exists; 3) Change in beneficial use - industrial to commercial to residential (less stringent to more stringent);
These represent some of the environmental risks encountered during a beneficial reuse project.
Understanding the risks above and taking necessary steps to properly delineate and remediate risks provide underwriters clarity of the tasks at hand and afford insurers the abilityt to ensure fortuitous losses such as: 1) discovery of previously unidentified contamination, 2) off site migration from an on site source, 3) third party liability resulting from known pollutoin conditions, legal defense coverage resutling from known or unknown pollution conditions. Looking at risk on a macro level ensures the interests of all parties are properly aligned.
When this occurs, buyers of insurance are beneficiaries of sound underwriting and a policy which will respond as intended.
Please feel free to contact me with your inquiries.
917 716 1420