Home > Glossary

Environmental Stop Loss Insurance

Environmental Stop Loss Insurance

Definition

Reduces the risk of pollution cleanup cost overruns by providing insurance coverage for excess cleanup costs when the actual cost exceeds the original estimate by more than some established percentage, such as 130 percent. That part of the percentage that exceeds 100 percent represents a built-in "buffer" before coverage is triggered under the policy. The size of the buffer will depend on the underwriter's confidence in the estimate.

Related Products

Navigation

Social Media

User ID: Subscriber Status:Free