As the utility industry transforms itself, many companies find themselves buying or selling contaminated sites. One of the often-overlooked aspects of these transactions is the extent of the environmental liabilities being transferred. How do the buyers and sellers protect themselves from unwanted liabilities? Is it just a matter of structuring an "iron clad" indemnification agreement? The answer often lies in the application of appropriate insurance products. The buyer, seller, or both can implement complimentary insurance programs that shield them from the unexpected. These insurance coverages were virtually non-existent five years ago, but are now widely used to help facilitate transactions. This paper will explore the environmental exposures inherent in many transactions and the alternative insurance/financial techniques that can be used to address them.
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