An Introduction to Environmental Impairment Insurance

by Jason Gardner

As recently as ten to fifteen years ago, environmental impairment insurance was a little known among the public. Earlier, only a few insurers for a small segment of the common marketplace covered the insurance. But, today it is a well known term in the corporate world. The increase in Environmental Impairment Insurance, in terms of frequency and severity, has proven that it creates a potentially big exposure that demands a closer look by the commercial insured ones. Environmental insurance has emerged into a highly specialized product marketed by almost ten major national carriers to insureds involved in almost every commercial enterprise.

The term environment impairment can be explained as any bodily injury, property damage, interference with any environmental right or amenity protected by law, or responsibility to clean up outside of the premises of the municipality, arising out of any/all emissions, discharges, dispersal, seepages, disposals or releases of any liquids. Environmental Impairment Insurance policies help to cover all those environmental risks that come with owing or operating a facility or site. These insurance policies help defend buyers and sellers from a variety of environmental liabilities occurring in business transactions, such as those that can take place in a merger, acquisition or divestiture. The Insurance also provides environmental coverages for losses coming up from on-site or off-site pollution conditions and coverage under pollution conditions arising from transportation also. Today Environmental Impairment Insurance has appeared as a typical mainstream component of a growing number of corporate insurance portfolios.

The Environmental Impairment Insurance policies offer a number of benefits to the insured one. It provides coverages for past, present and future environmental issues. Not only this, environmental insurance also provides financial backstop against potential catastrophic events associated with daily operations. Environmental insurance provides guarantee to unknown environmental problems arising in the asset transactions. It improves the financing prospects by allowing creditor protections. However, It is a transferable asset to future investors or buyers. The Environmental Impairment Insurance policy alleviates the uncertainty of environmental liabilities and is very flexible in nature. It is an external fund that helps a company to finance environmental losses and provides protection against environmental threats. The insurance policy offers solution to regulatory and contractual requirements, lender requirements and mergers and acquisitions.

While taking the insurance policy you need the help of an environmental land consultant to discuss the pros and cons. Although, there are a number of consultants available in the market place today, but presently one of the leading ones in the UK is – Wilbourn Associates. Originated in the year 1993, Wilbourn Associates handle all types of environment related matters, whether it is about risk planning or management, or about Energy Performance Certificates. To hire the consultants, log on to their website www.environmental-surveyor.com.