NCJ Number
129611
Journal
Georgia Law Review Volume: 24 Issue: 3 Dated: (Spring 1990) Pages: 705-732
Date Published
1990
Length
28 pages
Annotation
Current legislative and judicial approaches have resulted in a system where pollution liability is a constant threat to many businesses and pollution liability insurance has become more and more unattainable.
Abstract
Two laws, the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conservation and Recovery Act, place financial responsibility on businesses whose activities expose them to possible liability for environmental contamination. The result of these laws has been to create an atmosphere of greater potential liability for businesses whose activities involve a risk of polluting the environment. Insurers are understandably reluctant to cover businesses with such liability exposure. Even when a comprehensive liability policy has been issued, polluting sites often lie abandoned while the government, the insured, and the insurer fight over who should pay to render them environmentally safe. The growing liability crisis has prompted several observers to propose alternative solutions, including environmental impairment liability policies, private funding arrangements, and risk retention groups (self-insurance). An environmental response fund is proposed that would be administered by the Environmental Protection Agency. Participation in the fund would be mandatory, with assessments made according to criteria that reflect a company's individual probability of causing an environmental hazard. 165 footnotes