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Post Remediaton Pollution Liability
This policy can be implemented subsequent to regulatory sign-off or the no further action required status (after a successful remediation effort).
This policy will provide Pollution Liability coverage for the subject site (First-Party), as well as any Third Party lawsuits from adjacent or downgradient property owners that allege that their site is contaminated because of pollution that emanated from the subject site (your property).
The Post Remediation Pollution Liability policy provides indemnity to all parties including buyer, seller and lending institution. The indemnity issue seems to always become a problem when there is a transfer of title. The buyer and lender are concerned that a third party will allege bodily injury or property damage (at sometime in the future) as a result of contamination that originated and then migrated from your property. The indemnity issue also seems to have a direct effect on the price of the property.
The Post Remediation policy will also cover a change in the state laws or regulatory directives that become stricter. The issue now being discussed often is MTBE, which was not tested for during many of the early remediation projects. The regulators could in the very near future demand that many property owners who have been told they were in compliance, to go back in and remediate the MTBE.
The Post Remediaton Pollution Liability policy will protect against
a financial loss that could impair a firm's operations and profitability.
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