Cleanup cost cap policies protect companies from cost overruns connected to a particular remediation project. Since cleanup efforts can be expensive and time-consuming, cost cap policies can be helpful in dealing with projects that exceed their budget. Companies must provide the insurer with a detailed remediation plan, including cost estimates for the project, in order to qualify for coverage.
The costs of an environmental liability policy can vary depending on location, level of pollution and issues with third-party claims. Business owners must make sure that they have adequate coverage to cover the costs of repairing the damage, settling any outstanding third-party claims, meeting government environmental standards and preparing the property for its new purpose. Environmental liability coverage can help with these costs while protecting the assets of the company, its owners and their families.