One of the simplest means of transferring the risk associated with a known environmental remediation issue is to obtain a remediation cost cap policy. Though the terms and conditions of this coverage have become increasingly restrictive, the policy is effective in capping the costs associated with a known remediation. The policy is written with a buffer of 10–25 percent of the expected remediation costs before the risk transfer layer attaches. The policy provides coverage in the event of a cost overrun associated with any or all of the following:

• Discovery of higher concentrations of contamination
• Discovery of a greater spread of contamination
• Changes in governmental regulations
• Failure of proposed technology

In this scenario, the environmental liability remains with the property owner, but the owner has capped the expected cost of the remediation.