January 12

National Uniform Supply Company Sells Back Found Old Insurance for Cash

The leading supplier of rental uniforms in the United States had experienced significant growth acquiring numerous uniform laundering and drycleaning companies. In acquiring these companies, the uniform supply company inherited long-tail environmental liabilities. Environmental agencies in 18 states had issued cleanup directives at some 40 sites. The uniform supply company wished to monetize the insurance policies of the companies they acquired to help pay for the long-tail environmental liabilities.  

PolicyFind conducted insurance archeology to locate and reconstruct the policies issued to the numerous companies acquired and absorbed. For 25 of these acquisitions, PolicyFind documented the historical insurance programs. At the same time, EnviroForensics analyzed the environmental data for each site to determine the combined cleanup costs to address liabilities, which totaled nearly $50 million. With that information, the historical insurance policies could be sold back to the insurance companies for cash. Together, PolicyFind and EnviroForensics collaborated with the uniform supply company’s legal team to effect a policy buyback that brought tens of millions of dollars to the company to offset their environmental liabilities.