Financial Assurance
/ˌfaɪˈnænʃəl əˈʃʊərəns/
Definitions
- (n.) A regulatory or contractual guarantee that financial resources will be available to cover certain liabilities, such as environmental cleanup or performance of obligations.
The company provided financial assurance to ensure site remediation would be completed even if it went bankrupt.
Forms
- financial assurance
Related terms
See also
Commentary
Financial assurance is typically required in contexts like environmental law or construction contracts to secure potential future costs, so clarity in scope and coverage in drafting is vital.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.