Performance-Based Contracting with insurance: is it the right choice for your site/project?

摘要

Over the last several years, the insurance industry has developed a number of finite risk environmental insurance products. Several factors contributed to this: the increase in the redevelopment of contaminated properties; the proliferation of voluntary cleanup programs; responsible parties' concerns regarding uncertainties associated with the duration and costs of remediation; and the protection of responsible parties and remediation contractors by capping their costs and exposure, respectively. These products have significantly impacted the remediation industry by increasing the number of projects that are managed via performance-based contracting with insurance (PBCI).