With a GFPR contract, responsibility for cost control and risk management is shifted to the remedial entity, a party better equipped for these functions than other parties involved. In most GFPR transactions, the contractual arrangement constitutes a liability buyout or transfer from the party(ies) that currently hold the liability to the remediation entity taking on the responsibility for site cleanup. Although this does not legally release the historic liability holder(s) from their CERCLA liability, it does place the remediation entity squarely in front in the event of a future claim.

Through the use of environmental insurance, the contractor can protect themselves from environmental liabilities and cleanup cost overruns. This will allow them to bid less conservatively, even in light of uncertainty because their business risk is balanced by having insurance coverage. However, contractors need to be aware of the pitfalls. This process requires the know-how of experienced professionals who have worked within governmental regulations, and who understand the intricacies of transactions with environmental issues and the insurance requirements of federal and state agencies.

When you trust your company’s environmental risk management to JCH, you can rest assured that we have designed a customized risk management program based on all the information and that the solution we offer is specifically designed to help your company meet its business objectives.