Beazley plc has expanded its environmental products offering with the launch of an Environmental Cleanup Costs insurance policy that provides coverage for cost overruns for remediation of known conditions at covered locations.
The product, written on a non-admitted basis through Beazley's syndicates at Lloyd's, is available nationwide and protects contractors and their clients against additional expenses and cleanup costs incurred during remediation projects. The policy provides "stop loss" protection to cap costs for known pollution conditions due to expenses that exceed a pre-determined budget. It is designed primarily for brownfield projects where the remediation budget is from $3 to $10 million, on 10 contiguous acres or less.
"Many site owners, investors and property redevelopers desire financial certainty when dealing with contamination and remediation issues and want to work with contractors who can provide a guaranteed, fixed-price remediation solution. With an improving economy leading to more project opportunities, the right pollution coverage is vital," said James Wilkins, senior underwriter on Beazley's environmental liability team, who is also a professional geologist and former environmental consultant/engineer.
A brownfield site is former industrial or commercial property that may continue to harbour hazardous substances, pollutants or contaminants. Environmental contractors who clean up these properties are reducing blight, and taking development pressures off unimpaired green space and working lands.
"As a leading underwriter of liability coverage for many of the top engineering and environmental firms, we have been approached by many clients asking us to support their brownfield strategy. Cleanup of brownfield sites offers an alternative to the destruction of green space for redevelopment and construction projects, while affording greater opportunity for the environmental consultants we insure," said Wilkins.