Environmental Risk & Insurance Discussion
For Real Estate Developers, Investors, Owners and Managers
Did You Know?
- Over 80% of Gallagher Real Estate clients are acquiring Environmental Insurance.
- Companies still retain environmental liabilities from divested properties.
- The average cost per square foot for Real Estate portfolio companies is pennies on the dollar.
- Vapor Intrusion is a REAL environmental liability.
Standard liability and property insurance policies have excluded coverage for claims associated with pollution events since 1985, leaving significant coverage gaps in insurance programs throughout the U.S. Although there has been a market for pollution liability insurance since 1979, until recently, coverage was very narrow, limits were low, and premiums were relatively high.
The market for pollution liability insurance has dramatically changed over the years. Environmental liability coverage has greatly broadened, limits have increased and premiums are significantly lower. This discussion is provided for developers, owners and investors of commercial real estate to overview how environmental liability insurance can be used to manage financial risks associated with environmental liabilities. Today, more and more commercial real estate entities are purchasing environmental liability coverage.