Did You Know? – Closure and Post-Closure Financial Assurance Capabilities

If your client currently meets their CPC obligation through an escrow account, covering that with insurance is a suitable option in most states. The advantage for the insured is that they can, instead, use the escrow money for other purposes and meet the CPC requirements through an insurance policy. Typically, the amount of money in an escrow account is much greater than the annual premium for an insurance policy.

If your client meets their CPC obligation through a letter of credit, a CPC insurance policy is a suitable option in most states. That credit amount can then be used for other operations of the client, instead of being dedicated to the CPC financial obligation and therefore not otherwise available to the client. 

Clients have the ability to meet their CPC obligation through a financial self-test, however, those metrics can be difficult to meet each year. Again, insurance is a suitable alternative in most states if a client is no longer able to meet the financial self-test.