Conservation & Ecological Restoration FAQs

Our team has more than 35 years of combined experience in conservation, land management, restoration and related financial assurance. We have worked on or helped develop thousands of restoration, invasive species management and other resource management projects with the National Park Service, US Forest Service, Bureau of Land Management, and US Army Corps of Engineers (“USACE”) in forty-three (43) states and three (3) territories. Based on our experience in the field and with regulators, we can comprehend and appreciate the complexity of your projects.

Yes, we offer both performance bonds and casualty insurance on compensatory mitigation projects. We provide options and flexibility to respond to regulator preferences and unique circumstances.

Absolutely. Even if your broker doesn’t understand the context or nuances of compensatory mitigation, we’re happy to work with them. Our expertise will help ensure a seamless underwriting process.

No, financial assurance limits are negotiated by the mitigation provider and the USACE or subject regulator. Final discretion on the required sequence of financial assurance rests with the project manager of the subject regulator. Despite this, based on our breadth of experience across many USACE districts and with other regulators, we are generally familiar with the methods of calculation. We are happy to review limit requirements and financial assurance language in draft mitigation instruments, etc. to assist as you navigate this process.

No. If an annual term is not desired, Great American can structure multi-year financial assurance that incorporates scheduled changes in limits conditioned on the achievement of milestones (e.g., As Built approval or interim performance standards) and subject to the approval of the regulator. In most cases, we cover the life of the project from approval to final closeout without the need for a renewal.

No. Our program incorporates language that helps ensure compliance with financial assurance requirements throughout the term. Limits do not automatically reduce. Rather, limits remain in place until the USACE or subject regulator approves the applicable report that triggers a reduction. If your As Built Report is delayed beyond the originally scheduled date, the construction limit will remain intact until the regulator approves the reduction to the scheduled initial monitoring phase limit.

Yes. With many years under our belt securing approval for both bond and insurance forms of financial assurance, we are proficient at explaining the structure and language of our products and very responsive to regulator requests for edits or revisions. Our experience and ability to work with regulators is a key strength.

In addition to annual LOC fees, most firms are required to post liquid collateral to secure the exposure. Not only does this tie up the firm’s capital, but it also hampers the ROI of the subject project since the additional capital in the form of collateral should be allocated to the project. Larger firms may not have to post liquid collateral against each exposure; however, their LOCs will typically be reserved against a sublimit under their operating line of credit. This restricts their short-term working capital availability. Also, LOC’s typically must be renewed annually, creating additional administrative burden and a layer of uncertainty. Our standard financial assurance offerings do not require collateral, keeping your capital where you want it – supporting your business or in your pocket!

We strive to quote within 1-2 business days of receipt of a completed application. If timing is urgent, we may be able to quote on the day an application is received.

Yes. We understand that financial assurance cost is required for prospective projects and that the negotiation of financial assurance limits and their sequence is dynamic and subject to change. We often indicate the pricing for prospective project financial assurance more than a year in advance of approval.

Yes, subject to our review of the as built or most recent monitoring report approval, we can write a bond for go-forward monitoring periods.

Yes, we strive to deliver a comprehensive set of project-related solutions within the conservation and restoration markets (e.g., payments bonds). If we cannot support an ancillary project bonding need, we will attempt a referral to someone who can help.

Yes, we have appetite for these types of projects.

Absolutely. We also write financial assurance for non-federal regulators. We are experienced in gaining form wording approvals. If we have not worked with a particular regulator or district office before, and wording is not already mandated, we will leverage past successes to gain approval. We’re happy to work through you or directly with regulators, at your discretion, to develop the wording that will get your financial assurance approved and dirt moving.