WSP reviewed the insured’s remediation estimates and plans for each site, and developed a comprehensive database of the site conditions, remedial obligations, remediation status, regulatory status, and project cost estimates. A detailed evaluation of the estimates was prepared.
WSP then worked closely with an insurer, insurance broker, and the two major oil companies who had retained liabilities for the site cleanup to develop a liability transfer program that would protect not only the new owner, but also the two parties involved in the divestiture of the property portfolio.
The program provided insurance coverage of approximately $25 million in excess of an estimated cleanup expense of $50 million. The insurance program included known remediation obligations and future claims for third party cleanup, bodily injury, and property damage; the indemnity did not have a fixed time period. The insurance also provided coverage for newly discovered, pre-existing conditions, identified during the policy period.