Captive Risk-Reward for Environmental Management

Background: A manufacturing company with dozens of locations in North America and Europe was concerned about its environmental exposures from decades of operations. To be proactive, but not wanting to conduct detailed environmental site investigations, the company was interested in quantifying its environmental risks at a high confidence threshold and creating a long-term financial plan to address contingencies.

Role of ER&FS: Based on the available information, ER&FS created a risk model to measure potential third-party liabilities and remediation costs over thirty years. As the client decided to establish a captive insurance company to contain the risks and rewards of its environmental management, ER&FS developed unique environmental coverage terms and risk-pricing for the captive program.

Client Benefits: The client has successfully implemented an efficient program for addressing its environmental exposures and obligations while achieving cost savings and establishing responsible long-term environmental stewardship.

Case Studies

Acquisition Due Diligence
Acquisition Financing
Asset Enhancement
Asset Retirement Obligations
Captive Risk-Reward
Claim Recovery
Claim Support
Coverage Evaluation
Coverage Negotiation
Development Financing
Financial Assurance
Liability Management
Liability Resolution
Merger Integration
Negotiation Strategy