The Cleanup Cost Cap policy indemnifies the insured for cleanup costs, as defined in the remedial study, that are above the anticipated cost of cleanup.
Coverage is provided for cleanup cost at, adjacent to or emanating from the defined site location.
Premium discounts are available if the insured elects to have the coverage attach in excess of a buffer layer. Additional premium discounts are available if the insured shares in the cost overruns. The Cleanup Cost Cap policy is designed to address the risk and uncertainty associated with beginning an environmental remediation project. This mechanism is crucial to investors purchasing contaminated properties as well as to current owners who are cleaning up properties. Cleanup Cost Cap can be a component of an investment strategy or of ongoing balance sheet management.