Purpose of Financial Assurance
Financial Assurance is a financial instrument provided by an entity to ensure timely environmental cleanup should an owner or operator be unable or unwilling to perform required environmental actions. Businesses or individuals that obtain a permit or registration requiring financial assurance are responsible for obtaining and maintaining a financial assurance mechanism in accordance with agency rules.
The types of financial assurance mechanisms available and required language for each are set out by agency rules for the Programs Requiring Financial Assurance. Although these mechanisms have names that are commonly used within the financial industry, their format and language are different. For example, a certificate of insurance as set out in agency rules is not the same as an ACORD Form certificate of insurance routinely used in the insurance industry.
The amount of financial assurance will be determined by the respective program area's rules and/or permit staff. For further discussion please refer to the appropriate program area under Programs Requiring Financial Assurance.