Environmental insurance cover to protect against possible historical land contamination liabilities



In 2007 ensura arranged cover through a Terraffirm policy for a hotel.  ensura worked through a Magic City Law Firm on behalf of the client.  This year ensura was approached again by the same client who was acquiring another hotel in the UK.  Once refurbished the hotel was to be leased to a well known hotel chain.

The purchaser had already obtained a SITESOLUTIONS Commercial Report from our partner Argyll Environmental Ltd.

Whilst no material liability was identified in this report, a clause in the lease stated that the purchasers, as landlords, were liable for any historical land contamination. The apportionment of risk in this manner gave rise to concerns.

ensura provided a quotation within 72 hours. A Terraffirm policy was issued facilitating the purchase and subsequent lease of another hotel within this growing chain of hotels.

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