How a Risk Transfer Works
- The Owner finds the Environmental Trust Escrow at closing. Funds released based on achievement of project milestones.
- SPE/ERT would indemnify the Owner for environmental liabilities.
- The insurance would be customized solely for this transaction with the Owner being the First Named Insured.
- At significant completion, the PLL Insurance will be assigned to the SPE as First Named Insured with the Owner listed as an Additional Insured.
- If the SPE/ERT indemnity fails, the Excess of Indemnity Insurance will respond for the Owner.
- Together, the SPE/ERT indemnity, Excess of Indemnity Insurance, and PLL Insurance will cover both known and unknown environmental matters for the Owner.