Insurance Recovery for Environmental Costs in the

United Kingdom

Laurence J. EisensteinJohn L. Malanchuk PhD

Presented at:

Contaminated LandAchievements and Aspirations12-15 September 2004Loughborough University, UK

The Concept

Contaminated Land

Historical Insurance

Uncontaminated Land

The Suggestion

Insurers of the site during and after the period when contamination occurred are significant stakeholders in the site clean up

Failure to evaluate the possibility of insurance recovery ignores a major funding source

The Process

Corporate History

Insurance Information

Liabilities

Corporate History

Insurance Information: The Asset is Diminishing

Insurance Information: The Asset is Diminishing

Liabilities

Liabilities

The Details

Past CostsFuture Costs– Site characterization– Remediation quantities and remedy– Ground water– Other offsite natural resources damage– 3rd party property value diminution

Negotiate a settlement with the insurer as a business transaction

Why the Process Works

Litigation is avoidedTransaction costs are minimizedInsurers avoid future exposureInsurers have reserves for future claimsInsurers also have reinsuranceFunds are made available to the policyholder for needed remediationIt costs nothing to evaluate your claim

Eisenstein Malanchuk LLP1048 Potomac Street, N.W.Washington, D.C. 20007

(202) 965-4700www.em-law.com

jmalanchuk@em-law.com