Asset purchase transactions (EHS issues)—environmental insurance
Asset purchase transactions (EHS issues)—environmental insurance

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Asset purchase transactions (EHS issues)—environmental insurance
  • When is environmental insurance appropriate?
  • What type of policy?
  • Information requirements
  • Timing issues

When is environmental insurance appropriate?

Environmental insurance may need to be considered in the following situations:

  1. an environmental report identifies significant concerns regarding contamination

  2. there is stalemate in environmental indemnity negotiations

  3. there are concerns over the covenant strength of the indemnifying party

  4. insurance is required by funders, tenants or to help the saleability of a high risk site

See Practice Note: Environmental insurance—when is it needed?

What type of policy?

The usual type of insurance in asset purchase transactions is a ten–year fi