Using Environmental Insurance to Manage Risk in Mergers and Acquisitions

Beveridge & Diamond Of Counsel Rusty Pomeroy (New York) co-authored a practice note titled "Using Environmental Insurance to Manage Risk in Mergers and Acquisitions," published in Lexis Practice Advisor®'s practical guidance section. The piece explores the important role that environmental insurance can play in mergers and acquisitions by allowing the parties to transfer identified and unknown environmental risk to a third-party insurer.

The identification, allocation, and mitigation of environmental risk for current and formerly owned real estate, as well as for current and historic business operations of the target can be crucial to the overall success or failure of the deal. The practice note discusses the typical environmental risks in M&A deals, the pros and cons of environmental insurance vs. contractural indemnities, and environmental insurance policy issues and pitfalls.

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