According to Bob Hallenbeck, Senior Vice President at XL Insurance’s Environmental unit, "These renewals are testaments to the important role that environmental insurance plays in redevelopment activities, helping the process move along and allowing redevelopment agencies to return this land to productive use to bring jobs and new resources to the community.”
“XL Insurance has written coverage for Base Closure and Realignment Commission (BRAC) sites , like Riverbank and Alameda, for more than a decade providing similar environmental insurance protection to 36 different BRAC sites,” said Mr. Hallenbeck. ”Especially in today’s fragile economy, environmental insurance offers a financial cushion that helps protect profits from unexpected cleanup costs and keeps remediation activities moving along and on schedule. Without such protection, the discovery of unknown pollution conditions could stop a project right in its tracks and delay plans to return jobs and other resources back to the local community.”
In 2005, the Base Closure and Realignment Commission recommended the closure of Riverbank Army Ammunition Plant. The base was officially deactivated on March 31, 2010. The environmental insurance policy was purchased shortly thereafter by the Riverbank Local Redevelopment Authority (LRA), and enabled the LRA to minimize its environmental exposure as it assumed its role as the landlord for multiple tenants on the site. Its renewed environmental policy will offer the same protection as it continues to plan and implement the site’s redevelopment plans.
The Alameda Reuse and Redevelopment Authority purchased its original environmental insurance policy in 2001 to address environmental cleanup concerns on the 1,700-acre Naval Air Station which was recommended for closure in 1997.
Both Riverside and Alameda's environmental insurance coverage helps cushion the impact of potential environmental liabilities associated with any additional cleanup necessary for the base, protect tenants against property damage, bodily injury and legal defense costs, and encourage the eventual re-use or transfer of the property to new owners or tenants.
About XL Insurance
XL Insurance is the global brand used by XL Group plc's insurance companies and underwriting divisions offering property, casualty, professional and specialty insurance products throughout the world. More information about XL Insurance is available at www.xlinsurance.com. XL was formed in 1986 in response to the unmet risk management needs of 68 of the world's largest companies. This year, as XL celebrates its 25th anniversary, it remains the company clients look to for innovative insurance and reinsurance solutions for their most complex risks. XL Group plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty, and specialty products to industrial, commercial, and professional firms, insurance companies and other enterprises on a worldwide basis. More information about XL Group plc is available at www.xlgroup.com