Financial Responsibility for Liability Coverage
Financial Responsibility for Liability Coverage. Owners and operators of hazardous waste management facilities must demonstrate third-party pollution legal liability coverage. The financial mechanisms that may be used are specified in R299.9710. The wording for the financial mechanisms is specified by the MMD:
- Financial Test
- Corporate Guarantee for Liability Coverage
- Liability Letter of Credit
- (required for Liability Letter of Credit) Standby Trust Fund for Liability Letter of Credit
- Liability Trust Fund
If insurance is used to demonstrate third-party pollution legal liability coverage, then the policy must be amended by an endorsement on a form specified by the MMD. Separate endorsements are required for sudden and accidental occurrences and non-sudden accidental occurrences, and special versions of the endorsements are available for policies that have been pre-accepted by the MMD. (Pre-acceptance involves the review of the policy form and all endorsements used for Michigan risks.) In addition, the owner or operator must sign a waiver of the right to immediate cancellation of the policy. The endorsements and waiver form are listed below.
Related Documents
- Non-sudden Accidental Occurrence Endorsement EQP 5103-2b, (Revised 02/2023)
- Non-sudden Accidental Occurrence Endorsement for Pre-Accepted Policies EQP 5103-2, (Revised 02/2023)
- Sudden and Accidental Occurrence Endorsement EQP 5103-1b, (Revised 02/2023)
- Waiver Form EQP 5140, (Revised 09/2023)
- Sudden and Accidental Occurrence Endorsement for Pre-Accepted Policies EQP 5103-1, (Revised 02/2023)