Within almost any company in any given industry there exists at least some degree of environmental exposures that stem from statutory or common law liability.  These exposures can be from underground storage tanks, current operations, or the operations of the previous tenant/owner of the site – CERCLA (The Comprehensive Environmental Response, Compensation and Liability Act – aka Superfund).  CERCLA holds owners and operators of property liable for the cleanup of pollution on, under, or migrating through the site. The owner is responsible whether or not they had anything to do with the contamination. It falls to that responsible party to seek out other potentially responsible parties (PRPs) to contribute to the cost of cleanup. More often than not, it isn’t the actual polluter who is first tagged as liable for the cleanup, but instead it is the current owner or operator.

Krauter & Company is an industry leader in the identification and evaluation of these environmental risks.  Krauter & Company knows what to look for and how to keep clients protected and secure, whether that be for operations in the US or abroad.  Many countries that have historically ignored the repercussions of pollution caused by industry are awakening to the potential hazards from pollution and the subsequent damage to persons, property and the environment.

The insurance industry has followed suit and developed some very useful products to protect Insureds worldwide in any industry from these exposures through the use of traditional and alternative risk products. These programs have evolved over the years and can now be written to cover almost any potential claim emanating from pre-existing conditions or new conditions.  These programs can be written on multi-year policies including ten years for pre-existing conditions and five years for new conditions.  Although the general market is backing away from offering ten year terms for new conditions, several markets will still consider this duration for the “right risks”.

In many circumstances, environmental liability exposures are problematic to the facilitation of a merger or acquisition, especially if the two parties cannot mutually agree on the valuation of the known/unknown exposure or the expected cost of remediation.  In any circumstance, Krauter & Company has the expertise to design the proper environmental risk management solutions.