Financial Assurance for the State of California
As you work to protect your clients against environmental hazards, it’s important to consider not only the product but also when and who can offer coverage.
What is financial assurance?
Financial assurance is proof of financial security (cash and non-cash) to guarantee that you can cover the cost of complying with environmental objectives.
Those working with the Department of Toxic Substances Control (DTSC) under voluntary agreements are required by statute and regulation to provide adequate financial resources to pay for the long-term operation of certain types of cleanup systems.
These financial resources are known as financial assurance mechanisms. Having these resources in place ensures that DTSC can take over the management and stewardship of a cleanup in case the operator fails to meet its obligation due to financial insolvency or other reasons. With financial assurance, DTSC can ensure that human health and the environment are protected without placing a burden upon California taxpayers.
When is Financial Assurance required for my clients?
DTSC requires financial assurance for projects where a long-term cleanup system is essential to maintain environmental and human safety. Examples included (but are not limited to):
- Vapor barriers
- Sub-slab depressurization systems
- Certain types of in-situ treatment
- Certain types of engineered caps
- Systems that have an option for conversion from passive to active cleanup
- Systems that require routine sampling to ensure long-term efficacy and effectiveness
Who can offer Financial Assurance in California?
It is important you’re working with a preapproved surplus line carrier!
Only carriers who are preapproved by CA DTSC for use by surplus line brokers can offer financial assurance. You can find out which carriers are approved on the CA DTSC financial assurance websites.
As a preapproved surplus lines carrier in the state of California, we’d be honored to help meet your clients’ needs
We’re pre-approved by the California Insurance Code (CIC), meet their rigorous standards and are able to satisfy CA DTSC (Department of Toxic Substances Control) Financial Assurance requirements, including issuance of Certificates of Liability for:
- Hazardous Waste Facilities
- Closure and/or Post-Closure obligations
- Operations and Maintenance
Ready to learn more? We will give you a call!
Do you have clients with financial assurance needs? Want to learn more about financial assurance? Let us do the leg work and give YOU a call.