Environmental Risk Management
EarthCon Consultants (EarthCon) offers comprehensive Environmental Risk Profile services designed to help you evaluate risk-management options in property transfers, site closures and other ventures where there is potential exposure to environmental liabilities. The Profile considers a single property or portfolio of properties to give you an independent, objective evaluation of potential environmental liability and the resulting risk of potential financial losses.
The Profile consolidates information about historical operations, property setting, and other factors related to potential environmental liabilities. The Profile offers an evaluation of potential cause-and-effect scenarios that may result from the environmental liabilities. A Liability Risk Rating is then determined by considering the severity and frequency of the potential loss scenario. The Liability Risk Rating assumes an insurance carrier’s perspective on potential loss. Insurance coverage specifications are generated from this information to meet project transaction objectives while effectively addressing your potential environmental liability.
The Environmental Risk Profile with these insurance coverage specifications can serve as a valuable tool to help you obtain the most competitive price in environmental insurance premiums. You can also provide potential insurance carriers with the Profile via your insurance broker. The cost of the most competitive insurance premiums can be weighed against the cost of self-insurance and other risk management options – such as additional data collection or focused remediation. This exhaustive data can help you choose the most effective environmental risk management strategy available, without compromising your project objectives.
ENVIRONMENTAL RISK PROFILE SERVICES INCLUDE:
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Once you have the most cost-effective strategy in place, the most critical component of the Environmental Risk Profile is project closure. The Environmental Risk Profile services assure timely project closure by evaluating information most relevant to potential environmental liabilities and their associated costs. Insurance quotes can be directly compared to alternative risk management options – like self-insurance, additional environmental sample collection, or focused remediation – to develop the most appropriate risk management strategy.
THE PROOF
CHALLENGE A former paper mill on the eastern seaboard was transferred to the Local Port Authority for industrial redevelopment. The land had been used for wood processing and paper manufacturing for more than century. As a result, numerous environmental quality issues involving complex soil, groundwater, surface water and tidal sediment needed resolution and, ultimately, approval by the State and Local Port Authorities. The Local Port Authority hoped to attract potential developers to the property by offering an in-place environmental impairment liability insurance policy to guard against undiscovered contamination.
APPROACH EarthCon developed a Risk Profile of the property that the transferor’s insurance broker used to obtain the most appropriate and cost effective environmental insurance coverage available. The Risk Profile considered cause-and-effect scenarios and outlined a detailed risk-ranking system. The cause-and-effect identification task was presented in tandem with loss-prevention and loss-control techniques that were to be implemented by the transferor. The Risk Profile included a Liability Risk Rating that summarized the frequency and severity of potential environmental loss.
BUSINESS SOLUTION EarthCon’s Risk Profile of the property was instrumental in the transferor’s ability to obtain the most appropriate and cost effective environmental insurance coverage for the subject property.
Contact Us today to discover the tangible benefits EarthCon can produce in developing an Environmental Risk Profile for you.
