Environmental Insurance, Escrows, and Contractual Transfers of Environmental Liability

Identifying, Quantifying and Allocating Potential Liabilities and Long-Term Environmental Obligations

Recording of a 90-minute CLE webinar with Q&A

Conducted on Thursday, August 6, 2020

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will review both traditional and evolving environmental insurance products (e.g., pollution legal liability, cost cap, and excess of indemnity), escrows, contractual liability transfers, and other tools in the context of the cleanup and/or transfer of contaminated properties.


Counsel for all stakeholders with interest in contaminated properties: real estate, environmental, and bankruptcy counsel serving industrial clients, governments, Brownfield developers, remediation contractors, and PRP groups can benefit from quantifying and even reducing cleanup costs in a manner that is accurate, efficient, and will hold over time.

Contaminated properties present multiple financial risks: (1) costs for unknown pollutants and otherwise unanticipated remediation; (2) cost overruns for expected remediation; and (3) toxic tort and other private, third-party claims. For 20 years, parties relied on pollution legal liability insurance and, until 2011, on "cost cap" insurance to address these risks.

When traditional insurers stopped offering cost cap insurance in 2011, the environmental risk transfer industry developed alternative cost cap structures, as well as excess of indemnity insurance. Escrows, captives, trusts, annuities, and letters of credit work in conjunction with insurance to collateralize risk.

Listen as our panel composed of attorneys and insurance representatives discusses these tools as they have arisen and evolved over the last 20 years.



  1. Use of environmental insurance and other risk transfer tools to support fixed-price cleanups and purchases/sales of contaminated properties
    1. Why use
    2. When to use
    3. How to use
    4. Advantages and disadvantages
  2. Mechanics of tools
  3. Lessons learned


The panel will review these and other key issues:

  • How can costs be best quantified and fixed?
  • How can costs be best reduced?
  • How can cleanup quality be best improved?
  • What are the opportunities (and best means) of negotiating and scripting favorable language in policies, escrows, and other risk management tools?
  • What are the challenges and pitfalls of using the various tools?


Schnapf, Lawrence
Lawrence P. (Larry) Schnapf

Schnapf LLC

Mr. Schnapf primarily concentrates on environmental risks associated with corporate, real estate and Brownfield...  |  Read More

Squires, William
William J. Squires, III

Hinckley Allen & Snyder

Mr. Squires represents buyers, sellers and lenders in the purchase and sale of operating businesses, real property and...  |  Read More

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