Whether buying or selling a commercial property, environmental liability insurance can be used as a tool to help facilitate the transaction.
Any proposed title transfer naturally triggers a due diligence process that audits the property’s history to understand the potential for environmental liabilities.
Even if remedial action is taken on the property, the threat of third-party claims remains. Neighbors who believe they have been impacted from these pollutants can claim damages, and a subsequent regulatory reopener can result.
An environmental insurance policy not only gives the buyer and seller the comfort of knowing they are protected, it can be used as a backstop to an indemnity or in lieu of an escrow. It can also satisfy lender requirements, giving assurance to the bank financing the deal that any discovery of environmental issues on, at, or migrating from the collateral property won’t interfere with your ability to service the loan.
Please contact me, (216) 350-5054, tandolsen@armadarisk.us
