environmental stop loss insurance
Environmental stop loss insurance 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.
Additional Information
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.
