The environmental manager's guide to environmental liability insurance

Those readers who have spent more It's not your grandfather's than a few years in the environmental insurance-policies have field-and those who count their experi­ changed ence in decadesare aware of how technology, regula­ tions, policies, and practices have evolved to pre­ vent and reduce pollution and clean up both his­ torical and recent contamination. Over the years, regulations and other initiatives have curtailed many of the activities that led to the release of contaminants. Solutions, both government­ driven and founded within the private sector, have arisen to address impacts to human health and the environment. Businesses have adopted many new practices that minimize impact on both the environment and their own bottom lines. In addition to rigor­ ous pollution prevention programs, buying green, product stewardship, ISO 14000 registration, and other initiatives that companies have embraced to address environmental impacts, many businesses have turned to the insurance market. resources damage, business interrup­ tion, and emotional pain and suffering experienced by resi­ dential neighbors who have to evacu­ ate during a chemi­ cal release. What does environmental liability insurance do'? In many cases, it greases the wheels to ensure that businesses can continue to operate and pro­ tect the environment. An environmental liability insurance policy can have a major impact when a merger and acquisition is being planned, a brownfield site is being redeveloped, or a real es­ tate developer wants to purchase property with­ out worrying about shouldering the expense of proving an "innocent landowner" defense if the Phase I environmental site assessment misses a recognized environmental condition. Environmental liability insurance is one more tool that, when joined with other advances in en­ vironmental technology and management, makes it possible for businesses and-particularly