When is environmental insurance appropriate?

Environmental insurance may need to be considered in the following situations:

1. •

   an environmental report identifies significant concerns regarding contamination

2. •

   there is stalemate in environmental indemnity negotiations

3. •

   there are concerns over the Covenant strength of the indemnifying party

4. •

   insurance is required by funders, tenants or to help the saleability of a high risk site

See Practice Note: Environmental insurance—when is it needed?

What type of policy?

The usual type of insurance in Asset purchase transactions is a ten–year fixed site policy often called an Environmental Impairment Liability (EIL) Policy or Premises Pollution Lability (PPL) Policy. This can protect the insured parties against regulatory