|
Understanding Underwriting
Much has been written, in Brownfield News and many other publications, about the various types, uses and values of environmental insurance in the context of surplus or abandoned property dispositions, remediation and redevelopment.
In order to get the most from any expenditure for environmental insurance, brownfielders should understand the insurance underwriting process and use this knowledge when applying for coverage.
At present, the level of experience, maturity and sophistication among the major environmental insurance underwriting companies is at an all-time high. Indeed, environmental insurance is not new. Two decades of experience in underwriting coverage and accumulating claims data have given the business a solid foundation.
Through internal environmental engineering, geology and other relevant scientific
disciplines, along with the knowledge base of their engineering clients specializing
in specific media, contaminant, jurisdictional and other areas, insurers now
have a well-honed technical ability to understand, analyze and quantify environmental
risk.
The evolution of Pollution Legal Liability (PLL) over two decades and introduction
of Cleanup Cost Cap (CCC) in the mid-1990s provided the impetus for this high
level of analytical capabilities and underwriting discipline.
Related Articles:
What to Expect When You’re Insuring
(Vol. 8, Iss. 3)