Liability Assumption

International Risk Group, LLC's fixed price environmental liability assumption and privatization programs assume known and unknown, on and off-site liability. It is a unique financial, technical and risk management solution that offers the following features for environmentally impaired real estate transactions and development.

Features of the Liability Assumption Program

1) The liability is structured in a financial entity, typically a Limited Liability Company (LLC), which is in place for the life of the contract, say 10 to 20 years. It is funded with the dollars or real estate assets that we receive as consideration for the assumption of liability.

2) A trustee oversees the payments for cleanup and other costs.

3) Funds are not co-mingled with any other client, risk, or the corporate balance sheet.

4) Any funding requirements for long-term monitoring, institutional or engineering control maintenance can also reside in the LLC for the life of the contract.

5) Any insurance policies and funding for the deductibles reside in the LLC.

6) The successful management of the liability and the assumption contract is handled by our internal team of experts including financial, legal, insurance and technical personnel.

7) We do not use third-party environmental insurance brokers. If there is a claim, we have all the information in house and the expertise to get the claim paid quickly and without litigation.

9) Experience - Our current assumption and risk management book of business is in excess of $1 billion dollars of environmental liability.

International Risk Group's liability assumption structure offers six layers of risk protection. An escrow agent disperses the funding to meet the contractual obligations of the assumption contract which are managed by International Risk Group's engineers, attorneys and insurance professionals. International Risk Group makes a profit when those contractual obligations are met, as determined by the escrow agent. Therefore, we are incentivized to meet those obligations as prudently as possible.

Layers of Risk Protection

View the 6 Layers of Risk Protection Structure

1) Known on and off-site clean up costs are first contained by means of an incentivized, fixed price remediation contract negotiated with a third party service provider.

2) The funds to pay the third-party contractor are escrowed along with any buffer or deductible funds that are required for the insurance policy that caps costs.

3) An insurance policy is put in place to cap the costs of known, on and off-site contamination.

4) Another insurance policy is purchased to provide security for unknown, on and off-site cleanup and third party toxic tort liability.

5) All funding is placed into a LLC including funding for insurance premiums and deductibles.

6) International Risk Group, LLC can place additional capital at risk to provide additional financial security for the assumption of liability or for risk that the insurance policies do not cover.

Related Transactions

Lowry I - Former Air Force Base International Risk Group, LLC, Announces a National First - The Privatization of the Remaining Environmental Liability at the Former Lowry Air Force Base.
Lowry II - Former Air Force Base Assistant Secretary Nelson F. Gibbs Recently Commented on International Risk Group's Privatization of Lowry AFB.
Sunflower Ammunition Plant Sunflower Redevelopment, LLC, a Joint Venture Between International Risk Group, LLC and Kessinger/Hunter & Co. LC, Was Awarded a $109,000,000 Requirements-type Contract for the Environmental Remediation and Explosives Decontamination of 9,065 Acres of Land Formally Known as Sunflower Army Ammunition Plant in Johnson County, KS.
Downey Industrial Plant International Risk Group Announces a National First - The Privatization of the Environmental Liability at the Former National Aeronautics and Space Administration Industrial Plant in Downey, CA.