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Potential environmental liabilities/environmental insurance

I received the following set of questions regarding the valuation of potential
liabilities and availability of environmental insurance coverage.  The
researcher (Joyce McDevitt) has already looked through the EPA publication
"Valuing Potential Liabilities for Managerial Decision-Making", but is wondering
whether anyone can offer any supplemental data, advice, methodologies, or
studies.  Can anybody help her out?

Thank you!

-- Susan


Futron Corporation is involved in doing a Maximum Probable Loss Analysis that
determines the amount of financial responsibility/insurance that commercial
launch vehicle companies need to have in order to protect the government from
liability in the event of a launch mishap. Our approach normally considers third
party personnel injury/death and government and third-party property damage that
would be expected from the resultant debris raining down after a failure. We
have recently been asked by another client to address short-term environmental
damage and clean-up in expanding our MPL model. We have also been asked to
address the issue of loss of use of damaged or destroyed property or facilities.

I would like to have information on whether companies or the government
determine the monetary value of these two potential liability areas, i.e.,
short-term environmental damage and clean-up, and loss of facilities. If they
do, what are the analysis approaches, techniques or models that are most useful?
Is this potential liability insurable and which approach do the insurance
companies prefer?  What are the premiums costs if insurance is available and are
these costs considered to be affordable or prohibitively expensive?

We would appreciate any information on this subject as well as points-of-contact
that we could talk to regarding this subject. My telephone number is (202) 488
?2939.  Please contact Allen Mears at amears@futron.com or (202) 488-3183 during
my absence from the office on May 24-31.

Thank you very much for your help,
Joyce McDevitt
Futron Corporation
400 Virginia Ave., SW Suite 340
Washington, DC 20024
Tel: (202) 488-2939
e-mail: jmcdevit@futron.com