As the leader in integrated environmental risk management, XL Environmental provides you with insurance, risk control and claims management services to address your environmental exposures and liability issues. But did you know that XL Environmental can also help you to select new business opportunities? Our knowledge of the environmental insurance marketplace and the challenges you face, as well as our commitment to product innovation make us a resource that you can rely on to help you take advantage of new business opportunities.

Challenges Facing Environmental Contractors

For the environmental services industry, there are a number of challenges associated with the changing marketplace. In addition to competition and market differentiation, you face an increasing demand for fixed bid contracts. In the past, the client allowed you to load the contract with caveats to protect yourself. Now, however, clients want a fixed cost based on your assumption of the risk.

Insurance As A Solution

Insurance is typically viewed as a "necessary evil." It’s written for losses that are unexpected. However, insurance can solve the problems that stand in the way of getting business in today’s changing marketplace.

The environmental insurance marketplace has evolved to help meet the needs of an ever-changing business environment. New forms and coverages continue to emerge, and environmental insurance is being purchased by all industries -- not just the environmental services industry. Increasingly, environmental insurance is being specified in many bids. For example, the Utah Department of Transportation’s (UDOT) landmark reconstruction of Interstate-15 required all contractors to purchase insurance. There has never been more of a demand for creative financing and loss funding options for non-traditional insurance products.

New Product Developments

Many environmental services firms have recognized the Brownfields market as a growth opportunity. Though there are two million sites across the country, only 20 - 25 percent have a viable exit strategy. To solve the problems associated with Brownfields redevelopment and contaminated property transfer, XL Environmental developed new specialty products:

Commercial Property Redevelopment (CPR) policy. CPR provides third-party pollution liability, on-site cleanup and protection against cost overruns from scheduled remedial activities. This program is tailored for many different real estate transfers, including Brownfields Redevelopment projects.

• Remediation Stop Loss (RSL): Provides coverage for Cost
• Overruns associated with:
• Discovery of greater contamination of constituents
• Discovery of additional contaminants
• Greater horizontal or vertical spread of contamination
• Changes in local, state, federal and provincial environmental regulations

RSL is a risk transfer vehicle that models the typical caveats in the remediation contractor’s proposal.

Incorporating RSL Into A Bid

There are several advantages to incorporating RSL into a bid. XL Environmental can provide the coverage attached to your bid, affording insurance protection over the cost. Additional advantages include protection of your profits and assets, as well as a client-focused approach. RSL enables you to package your product differently than your competition.

Finite Risk Programs

For long-term remediation, our finite risk programs may better suit your needs. The finite structure combines both funding and risk transfer components for known and unknown environmental liabilities. Advantages of this program include possible accelerated tax deduction of remediation costs, credit risk transfer to XL Environmental as well as a different financing approach that will make you stand out from the competition. Additionally, the finite risk structure provides balance sheet relief for your client and a shared incentive among three parties to manage the costs of the project. Any funds remaining at the project’s conclusion are returned to the client, consultant, etc., as decided at the outset of the project.

XL Environmental is committed to working with you to help you increase your business opportunities by creatively financing remediation with non-traditional insurance products. Our expertise and commitment to quality products and service can leave you more time to do what you do best -- bidding and performing the work.