What does Remediation Cost Cap Policy mean? Read on to discover the definition & meaning of the term Remediation Cost Cap Policy - to help you better understand the language used in insurance policies.
Remediation Cost Cap Policy
One of the simplest means of transferring the risk associated with a known environmental remediation issue is to obtain a remediation cost cap policy. Though the terms and conditions of this coverage have become increasingly restrictive, the policy is effective in capping the costs associated with a known remediation. The policy is written with a buffer of 10–25 percent of the expected remediation costs before the risk transfer layer attaches.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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