Overlooked Insurance AssetsJune 2011 – Articles ABA In-House Counsel Committee Newsletter
The last ten years have raised a number of new environmental claims and theories facing corporate America. Although environmental prosecution has dwindled, there is a new generation of environmental claims and new legal theories. In light of the dramatic rise of new legal theories of environmental liability and the exponential increase of bankruptcy filings, it is worthwhile to consider whether there are overlooked insurance assets that may help defray environmental costs.
Insurance is currently cheaper than it has been in decades so if there was ever a time for policyholders to make use of their insurance coverage without fear of finding a replacement insurer, this is it. It is more essential than ever to protect your company from picking up the tab for another PRP’s environmental obligations merely because a party has sought refuge in bankruptcy.