Clean-up
Cost Cap Insurance
The Cleanup Cost Cap policy is designed to address the risk and uncertainty associated with beginning or continuing an environmental remediation project.
The Cleanup Cost Cap policy responds to and manages the economic risk when a remediation project exceeds the costs projected in the corrective action plan.
When evaluating the decision to invest time and money into remediating contaminated property, the Cost Cap Program eliminates the grey area normally associated with unknown costs and liability while providing a safety net for property owners, responsible parties, and lenders to move forward profitably.
The Cost Cap Program covers remediation cost overruns for:
- Actual contamination and costs greater than estimated.
- Off-site or Third Party cleanup costs incurred in the remediation
of pollutants that originated from the subject site.
- Change orders required by a government authority or regulatory
group or changes to existing laws.
- New found contamination and subsequent cleanup costs, not previously
known, but discovered during the execution of the corrective action
plan.
This policy provides coverage above the estimated or expected
cost to cleanup a property with a buffer or self insured retention
of approximately 10-25%. This policy also indemnifies the responsible
parties for cleanup costs until regulatory sign-off occurs (by government
agency) or a no further action required status.
|
