Pollution Legal Liability Policy
Pollution legal liability Insurance functions as a risk management tool for residential, commercial and industrial property owners. The policy provides protection against claims arising from unknown historic and future environmental liabilities that could impair an owner's ability to sell, transfer, develop or operate property. This coverage can provide protection against regulatory risk, should the action levels for specific contaminants change over the policy period. In addition, the risks of acquiring or making new investments in commercial properties are minimized when a pollution legal liability insurance policy is in place before closing. The policy can replace the need for indemnification agreements, personal recourse guarantees, escrow accounts or price reductions that buyers and lenders often require. These policies provide the confidence that you have diligently investigated and managed the risks and long-term liabilities associated with ownership of environmentally impacted property.
Pollution legal liability Insurance functions as a risk management tool for residential, commercial and industrial property owners. The policy provides protection against claims arising from unknown historic and future environmental liabilities that could impair an owner's ability to sell, transfer, develop or operate property. This coverage can provide protection against regulatory risk, should the action levels for specific contaminants change over the policy period. In addition, the risks of acquiring or making new investments in commercial properties are minimized when a pollution legal liability insurance policy is in place before closing. The policy can replace the need for indemnification agreements, personal recourse guarantees, escrow accounts or price reductions that buyers and lenders often require. These policies provide the confidence that you have diligently investigated and managed the risks and long-term liabilities associated with ownership of environmentally impacted property.
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Policy Features
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Standard Coverages
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Optional Coverages: Some enhancements carriers can provide under pollution legal liability policies include
- separate defense outside of limit of liability
- bacteria/virus clean-up costs coverage
- contingent business interruption and soft costs
- acquired and divested properties by endorsement
- illicit abandonment
- products pollution coverage for pollution conditions caused by the failure of an Insured's product
Secured Creditors Policy
The Secured Creditors Policy protects real estate lending institutions from the risk of lending on properties that have historical or unknown environmental contamination. The policy can be structured to cover an individual loan or an entire loan portfolio. The policy protects lenders from default due to an environmental condition throughout the term of the loan. This coverage gives lending institutions the confidence of knowing they have diligently managed and minimized the exposures associated with environmentally impacted properties.
The Secured Creditors Policy protects real estate lending institutions from the risk of lending on properties that have historical or unknown environmental contamination. The policy can be structured to cover an individual loan or an entire loan portfolio. The policy protects lenders from default due to an environmental condition throughout the term of the loan. This coverage gives lending institutions the confidence of knowing they have diligently managed and minimized the exposures associated with environmentally impacted properties.
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Policy Features
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Standard Coverages
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Remediation Cost Cap
Remediation Cost Cap Insurance is a risk management tool utilized by property owners and remediation contractors. The policy insures against cost overruns in excess of a self-insured retention (SIR). The SIR is comprised of the anticipated cleanup costs and a negotiated buffer layer. The coverage provided above the SIR is usually subject to a negotiable co-payment participation by the policyholder. Remediation Cost Cap Insurance minimizes the financial risk of remediation projects and provides property owners and contractors with the confidence that they have diligently managed the risks and uncertainties associated with these projects.
Remediation Cost Cap Insurance is a risk management tool utilized by property owners and remediation contractors. The policy insures against cost overruns in excess of a self-insured retention (SIR). The SIR is comprised of the anticipated cleanup costs and a negotiated buffer layer. The coverage provided above the SIR is usually subject to a negotiable co-payment participation by the policyholder. Remediation Cost Cap Insurance minimizes the financial risk of remediation projects and provides property owners and contractors with the confidence that they have diligently managed the risks and uncertainties associated with these projects.
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Policy Features
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OTHER PRODUCTS AND COVERAGES
Representations and Warranties Insurance
Representations and warranties insurance (RWI) generally covers either buyers and/or sellers in connection with M&A or real estate transactions from financial loss in the event inaccuracies in representations and in warranties are made. In essence, both buyers’ and sellers’ policies can preserve the deal value by transferring potential liability for unintentional and unknown breaches of representations and warranties to an insurer for a premium. Another benefit to RWI is the ability to cover certain general indemnities beyond the actual representations and warranties. By purchasing RWI, buyers can distinguish a bid, sellers can reduce indemnity obligations and both parties can close deals efficiently with confidence and additional protection.
Corporate Veil Piercing Coverage
A limited number of markets offer a comprehensive legal liability for financial markets including investment banks, private equity, hedge fund operations and REITs specifically designed for protecting investment strategy and protecting corporate veil piercing against pollution conditions arising from a Parent Corporation’s investments. This unique pollution liability product can provide a solution to protect the Parent Corporation and its executives, its directors, its officers or its employees accused of being liable, or are held liable under environmental laws for pollution conditions arising from a Parent Corporation’s investments.
Representations and warranties insurance (RWI) generally covers either buyers and/or sellers in connection with M&A or real estate transactions from financial loss in the event inaccuracies in representations and in warranties are made. In essence, both buyers’ and sellers’ policies can preserve the deal value by transferring potential liability for unintentional and unknown breaches of representations and warranties to an insurer for a premium. Another benefit to RWI is the ability to cover certain general indemnities beyond the actual representations and warranties. By purchasing RWI, buyers can distinguish a bid, sellers can reduce indemnity obligations and both parties can close deals efficiently with confidence and additional protection.
Corporate Veil Piercing Coverage
A limited number of markets offer a comprehensive legal liability for financial markets including investment banks, private equity, hedge fund operations and REITs specifically designed for protecting investment strategy and protecting corporate veil piercing against pollution conditions arising from a Parent Corporation’s investments. This unique pollution liability product can provide a solution to protect the Parent Corporation and its executives, its directors, its officers or its employees accused of being liable, or are held liable under environmental laws for pollution conditions arising from a Parent Corporation’s investments.
Underground Storage Tanks & Above Ground Storage Tanks
Tank insurance provides coverage for corrective actions and third-party bodily injury, third-party property damage coverage for claims arising from the release of petroleum or hazardous materials from underground or above ground storage tanks (USTs or ASTs). Tank policies can also provide financial assurance to meet the financial responsibility requirements of the EPA. On-site clean-up costs may also be covered on these policies arising from third-party claims.
Tank insurance provides coverage for corrective actions and third-party bodily injury, third-party property damage coverage for claims arising from the release of petroleum or hazardous materials from underground or above ground storage tanks (USTs or ASTs). Tank policies can also provide financial assurance to meet the financial responsibility requirements of the EPA. On-site clean-up costs may also be covered on these policies arising from third-party claims.
Contractor's Pollution Liability
A contractor pollution liability (CPL) policy can prevent gaps in coverage due to pollution-related exclusions on standard commercial general liability programs. A CPL policy can apply to all types of contractors; environmental or non-environmental contractors. This policy protects against both sudden and gradual pollution conditions resulting from covered operations including completed operations conducted by or on the behalf of the insured. Typical pollution condition coverage in a CPL policy is broad and can also include coverage for silica, asbestos, mold, legionella, silt and sedimentation. CPL policies are available on a claims-made or occurrence basis. Coverage for a contractor’s owned premise as well as transportation, non-owned disposal locations, or equipment laydown areas are also available under CPL policies.
A contractor pollution liability (CPL) policy can prevent gaps in coverage due to pollution-related exclusions on standard commercial general liability programs. A CPL policy can apply to all types of contractors; environmental or non-environmental contractors. This policy protects against both sudden and gradual pollution conditions resulting from covered operations including completed operations conducted by or on the behalf of the insured. Typical pollution condition coverage in a CPL policy is broad and can also include coverage for silica, asbestos, mold, legionella, silt and sedimentation. CPL policies are available on a claims-made or occurrence basis. Coverage for a contractor’s owned premise as well as transportation, non-owned disposal locations, or equipment laydown areas are also available under CPL policies.
Owner and Contractor Controlled Insurance Programs (OCIP & CCIPs) for Contractor Pollution Liability
These programs are designed to provide owners or prime contractors with specialized environmental liability coverage and program management control they need for a specific construction project. The OCIP/CCIP policy structure ensures all contractors have the required environmental liability coverage and limits of insurance for the specific construction project.
These programs are designed to provide owners or prime contractors with specialized environmental liability coverage and program management control they need for a specific construction project. The OCIP/CCIP policy structure ensures all contractors have the required environmental liability coverage and limits of insurance for the specific construction project.
Combined Contractor Pollution Liability and Professional Liability Policies
A combined policy serves the need of full service environmental or non-environmental firms performing covered operations as well as providing professional services for a fee such as remediation, engineering, design, or consulting. These policies are designed to insure against economic damages and pollution conditions arising out of an error and omission from a covered professional service or a covered operation performed by or on behalf of an insured resulting in a third-party claim for bodily injury, third party property damage, cleanup costs, environmental damages and/or legal defense. By combining these coverages under one form, potential gaps or overlaps in coverage are reduced. The combined policy is ideal for multi-disciplined firms and firms whose operations are not solely environmental because as it provides both pollution coverage and errors and omissions coverage.
A combined policy serves the need of full service environmental or non-environmental firms performing covered operations as well as providing professional services for a fee such as remediation, engineering, design, or consulting. These policies are designed to insure against economic damages and pollution conditions arising out of an error and omission from a covered professional service or a covered operation performed by or on behalf of an insured resulting in a third-party claim for bodily injury, third party property damage, cleanup costs, environmental damages and/or legal defense. By combining these coverages under one form, potential gaps or overlaps in coverage are reduced. The combined policy is ideal for multi-disciplined firms and firms whose operations are not solely environmental because as it provides both pollution coverage and errors and omissions coverage.
CARRIER LINKS
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