Brownfields projects slow as economy curbs funding; Redevelopment efforts put on back burner; coverage competitive.(environmental impairment liability coverage)(Conference news)

Byline: JOANNE WOJCIK

The nation's economic downturn has slowed the rate at which brownfield sites are being redeveloped, regardless of the availability of insurance to finance cleanup cost overruns and shield contractors and property owners from potential liability.

Although insurers that write such coverage are scrutinizing most brownfield projects to ensure cost projections are realistic, the market for environmental impairment liability coverage is more competitive than ever, experts say (see story, page 19).

Despite the availability of insurance, approximately 3,035 of the nation's more than 22,000 brownfield sites have been "mothballed," primarily because of a lack of financing, according to a recent poll by the Washington-based U.S. Conference of Mayors. Other impediments cited in the survey included the need for environmental assessments, poor real estate market conditions and concerns about …