Insured Fixed-Price Cleanups: Still Possible Even After Commercial Insurers’ 2011 Exit from Cost Cap Market
Michael O. Hill, “Insured Fixed-Price Cleanups: Still Possible Even After Commercial Insurers’ 2011 Exit from the Cost Cap Market”, 70 Chem. Waste Litig. Rptr. 955 (Oct. 2015).
The article focuses on the need for, and the ability of, captive insurers to step into the shoes of commercial Insurers to allow private parties, governments, and others to enter into Fixed-Price Cleanup (“FPC”) contracts to accomplish cleanups and redevelopment at sites with large (e.g., >$10M) expected cleanup costs. Since the late 1990’s, FPCs have been increasingly used and endorsed by regulators as the best way to get large cleanups done on time, with good quality, and with low transactions costs. Private parties benefit as well from the fact that well over 90% are done on budget. Some private parties can also obtain substantial tax and accounting benefits.