INSURING AGAINST ENVIRONMENTAL UNKNOWNS

The Florida Department of Environmental Protection (FDEP), the United States Environmental Protection Agency (EPA), as well as other state, federal, and even local government agencies have stepped up their enforcement activities and broadened the reach of environmental laws and regulations in recent years. At the same time, as the number of people moving to Florida increases and more property is developed, due diligence investigations reveal an array of environmental problems associated with all types of land uses be it agricultural, industrial, or commercial. In many instances, land is being converted from one or more of these uses to residential use. In addition, environmental science and, particularly, risk assessment have developed more sophisticated analytical and evaluative techniques to determine the scope and extent of impacts to human health and the environment. In response to these developments, the Environmental Risk Transfer (ERT) and insurance industries have emerged to provide alternatives for potentially responsible parties (PRPs) to address these issues.