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.
