Recently, however, new legislation has spurred reasonable standards for cleanup and future use of brownfields sites. State and federal governments have jumped on the brownfields bandwagon, seeking new ways to help the business community redevelop these ailing properties. These state laws can provide some type of liability protection and in most cases some form of economic incentive for redeveloping or reusing the property. The primary role of insurance is to eliminate or reduce the uncertainty that exists for all parties involved in a brownfields property transaction. Insurance can help municipalities, city governments, property owners, potential purchasers, developers, and financial institutions reduce present and future liability.
Insurance can protect contractors and consultants from inherent risks involved in remediation.
Environmental insurance providers offer flexible and responsive insurance products and solutions to help get brownfields projects done. Virtually everyone involved in the transaction can benefit from a properly implemented risk management plan. Contamination discovered during redevelopment or aggravation of existing contamination by a consultant or contractor may result in additional cleanup costs. Potential failure of the remediation may present a business interruption risk. Contamination could affect an adjacent property or business leading to third-party bodily injury and property damage.