Environmental Liability

Breathe a Little Easier

Understanding how environmental liability exposes our clients to counterparty risk enables NFP’s Environmental Practice Group to provide best-in-class solutions for our clients’ environmental insurance needs. Environmental insurance is a useful hedge when it comes to mitigating risk of loss and associated costs arising from remediation expenses, tort liability, and legal defense expenses. To ensure the best outcomes for our clients, we also educate around indirect causes of loss, which can be far more costly to clients than those caused by their own actions.

Understanding the Risks

Environmental liabilities are often overlooked, frequently underestimated, and sometimes catastrophic. Because of this, it’s vital to understand the risks and associated liabilities arising from direct actions and/or indirect actions.

Direct Actions

• Title V air emissions violation
• Leaking fuel storage tank
• Midnight dumping of hazardous materials
• Disposal of hazardous material
• Exacerbation of existing pollution events
• Newly created pollution conditions

Indirect Actions

• Environmental indemnification assumed in purchase and sales agreement for real estate transactions
• Risk of loss assumed under bill of lading
• Force majeure events that suspend contractual assumptions
• Environmental indemnification assumed in commercial lending agreements
• Construction defects that result in environmental releases after certificate of occupancy and before expiration of statute of repose

Identifying the Objectives

NFP maintains strong, senior level relationships with the top environmental insurance companies and our ability to succeed is founded upon mutual trust with our core trading partners. We pride ourselves on our unwavering approach to deliver where others have failed. Our knowledge of international and domestic insurance and reinsurance environmental markets provides us the keen ability to leverage the marketplace. Our understanding of numerous types of commercial insurance allows us to provide best-in-class coverage leveraging and maximizing environmental insurance recoveries for our clients if and when a loss occurs.

Uncovering the Risks and Creating a Solution

Whether you are under contract for a brownfield or arranging, shipping, and storing hazardous materials, NFP can guide you through the environmental insurance process and structure appropriate coverage.