| Abstract: | Over the last five years, insurance products have been expanded to assist companies better manage environmental liabilities. The most progressive of these products is a finite‐structured program whereby the convergence of insurance and financial markets expand the meaning of “alternative risk transfer.” Finite programs blend financial markets and banking concepts with risk transfer concepts to more effectively and efficiently allow the insured to manage the financial implications of its environmental liabilities. This article presents the advantages of using finite‐structured environmental insurance policies and discusses how potential insureds can protect against several types of remediation project risks, including cleanup costs, inflation uncertainty, and variability in investment returns. © 2001 John Wiley & Sons, Inc. |
