Insurance and Brownfields Redevelopment
Environmental insurance is a tool used to quantify and transfer risks related to brownfields cleanup costs and liability from project stakeholders to an insurance company. The most common types of environmental insurance policies available for brownfields include:
Pollution liability - Protects an insured against on-site cleanup costs of unknown, pre-existing pollution and current pollution from ongoing operations, and third-party claims arising from pollution conditions (e.g., bodily injury, property damage).
Cost cap - Protects against cleanup costs exceeding the anticipated cost.
Secured lender - Protects a lender in the event that a borrower defaults on a loan and the default is associated with a pollution condition.
- Environmental Insurance Helps Ensure Redevelopment (PDF), July 2003 (3 pp, 714K)
- Environmental Insurance and Risk Management Tools - Glossary of Terms (PDF) (11 pp, 127K)
- Environmental Insurance Policy Coverage and Terms PDF) (4 pp, 166K)
Introduction to Environmental Insurance and Other Risk Management Tools
- State Brownfield Insurance Programs, 2006 (PDF) (61 pp, 380)
- Environmental Insurance Products Available for Brownfields Redevelopment, 2005 (PDF) (58 pp, 356)
- Update: State Brownfield Insurance Programs, 2006 (PDF) (19 pp, 219)
- Brownfields Insurance for Public Sector-Led Development Projects:
Experience and Methods, 2005 (PDF) (71 pp, 589)
- Environmental Insurance for Brownfields Redevelopment: A Feasibility Study
Department of Housing and Urban Development Document