2007 CPEO Brownfields List Archive

From: SusanNeumanEsq@aol.com
Date: 3 Jun 2007 22:48:37 -0000
Reply: cpeo-brownfields
Subject: Re: [CPEO-BIF] BCP Data Followup and Self-Directed Cleanups
 
On the issue of cost overrun insurance for small sites, I will have to weigh in more on the side of Peter than Larry.  It begs the question to say that the reason for insurers' reluctance to provide the coverage is inability to obtain sufficient premiums to cover the risks.  The reason insurers are refusing to cover overruns over small dollar value cleanup costs or, in a move that has the same effect, are charging premiums that eliminate small sites (e.g., $350,000 as a minimum premium) is not so much in the cost overrun risk itself but in the insurer's internal costs for underwriting the risks. Underwriting the risk at a small site takes at least as much time, effort, and analysis (including Monte Carlo modelling) as underwriting large sites, so insurers have to charge premiums that are relatively too high. Small sites  typically are less well characterized and the engineering information they come with is less complete than that of large ones, and that makes the underwriting process even more difficult or impossible.
 
Sue   
 
Susan Neuman, Esq., Ph.D.
Environmental Insurance Agency, Inc.
138 Chatsworth Ave.
Larchmont, NY 10538
914-833-5100 (phone)
914-833-5102 (fax)
www.enviroinsurance.com




See what's free at AOL.com.
_______________________________________________
Brownfields mailing list
Brownfields@list.cpeo.org
http://www.cpeo.org/mailman/listinfo/brownfields
  Follow-Ups
  Prev by Date: [CPEO-BIF] Bigelow Boiler building, New Haven, Connecticut
Next by Date: RE: [CPEO-BIF] BCP Data Followup and Self-Directed Cleanups
  Prev by Thread: [CPEO-BIF] BCP Data Followup and Self-Directed Cleanups
Next by Thread: RE: [CPEO-BIF] BCP Data Followup and Self-Directed Cleanups

CPEO Home
CPEO Lists
Author Index
Date Index
Thread Index