Closure and Post-Closure Coverage – Safeguarding Your Clients’ Financial Security

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When you work to protect your clients against environmental hazards, it is important to consider the regulatory requirements imposed by federal and state environmental agencies with respect to financial assurance. One type of financial assurance is Closure and Post-Closure Care. Great American’s Environmental Division has been writing such coverage for regulated hazardous or solid waste facilities since it first opened for business in 2008.

What is Closure and Post-Closure (CPC)?

Closure and Post-Closure (CPC) coverage is a guarantee that funds are available to pay for CPC costs associated with regulated waste units in the event the insured is not financially viable. These units include landfills, surface impoundments, treatment facilities, storage facilities, etc. Companies are required to demonstrate to the applicable regulatory body that funds have been dedicated to pay for CPC costs associated with a regulated waste unit as part of their operating permit.

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In addition to regulated hazardous or solid waste facilities, Great American's coverage can also be written for plugging and abandonment of injection wells and corrective action costs at facilities undergoing remediation in certain jurisdictions.

Regulatory Requirements

CPC requirements can be found in the Resource Conservation and Recovery Act (RCRA), Toxic Substances Control Act (TSCA), and related state versions of these regulations.

Several mechanisms can be used to demonstrate compliance with these regulations including:

  •  Letter of credit
  •  Bond
  •  Trust agreement
  •  Financial self-test
  •  Insurance
Did you know? Today, insurance is an accepted CPC mechanism in most states. Great American can write coverage on an admitted or non-admitted basis depending on individual state insurance regulations.

Coverage from Great American

Great American Insurance Company is rated “A+” (Superior) by A.M. Best (rating affirmed September 11, 2019) and is approved in all 50 states with limits capacity up to $50,000,000 per policy. Coverage can be offered on a “mono-line” basis without the requirement to write other insurance coverages for the insured, although we do offer a full suite of other Pollution lines. Coverage is written with an annual term and subject to a minimum premium of $15,000. 

It is important to note that Great American offers CPC coverage on a fronted basis subject to a signed Guaranty Agreement with the insured.

For more information on policy capabilities and submission requirements, please visit the following CPC resources or contact Rick Ringenwald.

Closure/Post-Closure Capabilities

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Rick Ringenwald, Divisional Vice President
Great American Environmental Division

Rick is a Divisional Vice President with Great American’s Environmental Division. He joins Great American from his previous position as Executive Vice President and Regional Team Leader for a leading global advisory, broking and solutions company, where he directed all environmental brokerage and business development efforts in the Northeast and Atlantic regions. With 20 years of industry knowledge, Rick brings valuable underwriting skills and a unique environmental perspective to the division. He is based out of our Exton, Pennsylvania office.