§ 80735 Insurance Cost Overrun Threshold

• •This law is about insurance for big cleanup projects (like fixing pollution).
• •If the cleanup costs more than expected, the person or company has to pay the extra cost up to a certain amount before the insurance kicks in.
• •The amount you pay first is called the 'self-insured retention amount'.
• •This rule starts working on January 1, 2024.

A company is cleaning up a polluted river. They think it will cost $100,000, but the insurance company agrees to cover extra costs if it goes over $120,000.

If the cleanup actually costs $150,000, the company has to pay the first $20,000 (the extra over $120,000) before the insurance helps with the rest.