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Wisconsin Brownfields Insurance Program

Program Basics

The Wisconsin Brownfields Insurance Program (WBIP) is an optional environmental insurance program for Wisconsin developers, businesses, and local governments. The program is designed to help protect against unknown environmental liability and to ensure that redeveloping brownfields properties is a profitable venture, particularly at medium-to-small sized brownfield projects.

In 2003, the Brownfields Study Group asked that the program be created to help reduce liability risks for those redeveloping brownfields in the state. The WBIP offers streamlined and cost-effective coverage at brownfields redevelopment sites. The WBIP was officially created in 2005 by the Wisconsin Legislature (s.292.53, Wis. Stats [exit DNR]).

WBIP Highlights - Why Choose Brownfields Insurance?

Environmental insurance is a tool available on the private market that can help control the risks associated with buying and cleaning up contaminated properties. For many large brownfield projects in Wisconsin, developers, responsible parties (RPs) and local government have purchased environmental insurance to control the financial risks associated with the project. However, the WBIP is offered as an option for medium-to-small sized brownfield projects which weren't being served by the traditional insurance market. The WBIP advantages are:

  • lower-cost premiums;
  • pre-negotiated policy terms to meet the needs of most Wisconsin brownfield transactions;
  • time savings to negotiate policy terms; and
  • streamlined underwriting process.

Coverage

The DNR has selected AIG Environmental [exit DNR] as the insurance carrier for this program, which offers a 10% discount on a WBIP policy. While policies and coverage may vary, the WBIP standard policy will provide coverage for the following:

  • investigation and cleanup of previously unknown contamination at, or emanating from the insured location;
  • investigation and cleanup of contamination if remedial action was completed and the site was closed (re-opener coverage);
  • coverage for third-party claims (bodily injury, property damage and/or cleanup costs) caused by contamination at, or emanating from, the insured location;
  • coverage for business interruption for extra expenses and/or lost income caused by unknown contamination at the insured location;
  • coverage for pollution claims at, or emanating from, disposal sites where contaminated soil and other materials are disposed of; and
  • costs for transportation of cargo, including waste, to or from the insured location.

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Program Eligibility

Wisconsin developers, businesses, and local governments are generally eligible for WBIP coverage. Properties at different stages in the investigation and cleanup process may obtain insurance. Applicants may be enrolled in the Voluntary Partly Liability Exemption (VPLE) process, but coverage is also available for sites which are seeking or have received closure under ch. NR726 if the applicant is willing to assess the entire property.

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Application Process - Step by Step

First Steps - Work With DNR

  1. Conduct a standard Phase 1 and Phase 2 Environmental Assessment for the entire property.
  2. Submit the Phase 1 and Phase 2 Environmental Assessments to the DNR for review, as follows:
    • The request for a review should be submitted with the DNR form “Technical Assistance and Environmental Liability Clarification Request" (Form 4400-237). On that form, in Section 3, please select "Other Technical Assistance" and select the box for “Review of Phase I and Phase II Environmental Assessment and other supporting documentation to qualify for the Wisconsin Brownfields Insurance Program (WBIP).”
    • There is a fee required to obtain this review. If the applicant is a "voluntary party" in the VPLE process, the fee for technical oversight will be billed at the currently hourly rate. For persons not approved as a "voluntary party, " the fee is $500, per ch. NR 749, Wis. Admin. Code.
    • For more complex sites, a complete site investigation may be needed.
  3. DNR will review the Environmental Assessments and provide comments. DNR will then write a technical review letter that will need to be submitted to AIG by the applicant, along with other required documents.

Next Steps - Work With Your Broker

  1. Contact your insurance broker to obtain coverage for your property. Your broker will obtain a quote directly from AIG.
    • Work with your broker to review the policy and the standard WBIP endorsement to determine if any changes are needed and to determine the level of coverage, policy limits, etc. that meets the needs of your project.
  2. Submit the DNR technical review letter, technical documents, and insurance application to AIG.
    • The insurance application will include a “Wisconsin Brownfield Insurance Program Application Addendum” that must be completed and signed with the application in order to obtain insurance through the WBIP. The Addendum gives AIG approval to provide DNR information about the properties obtaining insurance and general information about the program.

Final Steps

AIG will notify you if your application is approved and provide a premium quote. Premium payments, claims, and other insurance matters will be coordinated directly between the insurance broker and AIG, not the DNR.

Please note: If you choose to obtain insurance through this program, any environmental remediation activities will be overseen by DNR staff in accordance with standard regulatory requirements and procedures no different than any other site. Any applicable DNR review and approval fees will apply. Please work with AIG to determine what DNR technical approvals will be required.

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Contacts

If you have questions about the WBIP, please contact one of the following people:

Last Revised: Monday June 09 2008