Bermuda insurance giant XL Capital has taken on a huge contract for environmental cover for the possible contamination of a former US Naval base which is being redeveloped into a mini-village.

ECS Underwriting, an XL Company, has taken on liability for any future environmental claims which could be made at the site of the former naval training centre in Orlando in Florida.

The developers, who are planning housing and a school as part of the plan, can now breathe easier about concerns over any environmental liability associated with the 1,100 acre site with the help of the comprehensive insurance.

ECS Underwriting, one of the leading providers of environmental insurance in the United States, has provided cover for the site's developer, Orlando NTC Partners, a joint venture, the City of Orlando, and any future owner of the property from potential environmental and financial liability during and following the redevelopment of the property.

The policy provides coverage for unknown contamination should it be discovered following the US Navy's completion of remediation on the property.

Additionally, should environmental regulations or cleanup standards change, the site is covered against any additional remediation costs that might be incurred in order to bring the site into compliance with newly-established standards.

Orlando Naval Training Centre joins a growing list of former military bases whose redevelopment plans include the purchase of ECS environmental insurance cover to help control finances, avoid delays and protect all businesses involved in the remediation and redevelopment of these facilities.

In addition to the Orlando Naval Training Centre, ECS has created customised insurance programmes for Lowry Air Force Base in Denver, Kelly Air Force Base in San Antonio, Texas, the Naval Ship Yard in Philadelphia, Fort Sheridan in Highland Park, Illinois, the David Taylor Research Centre in Annapolis, Maryland, Watertown Arsenal in Watertown, Maine and the Glenview Naval Air Station in Glenview, Illinois.

"The questions posed before taking part in redevelopment activities are `why take the risk,''' said Bruce Amos, a managing underwriter at ECS Underwriting.

"With insurance policies available to help transfer the risk of property redevelopment, most businesses interested in these opportunities don't have to take on the risk.'' "Advances in overall risk management strategies are clearly opening the doors of opportunity for military bases, and for the agencies charged with turning redevelopment dreams into realities,'' said Mr. Amos.

In Orlando, the redevelopment plans include a "Town Centre'' complete with medical centre, shopping, residential housing and eventually, an elementary school.

Another phase of the redevelopment will include major improvements to an existing golf course to bring it up to professional standards and the development of several public recreation areas.

Mr. Amos said: "The type of site redevelopment taking place at Orlando, in which the City of Orlando is privatising the reuse of the site, provides an excellent example of the best in public-private partnerships.'' Bob Hallenbeck, ECS vice president for government affairs said: "The situation at Orlando Naval Training Centre is a perfect example of how a custom-designed, reasonably-priced product can provide the comprehensive coverage necessary to encourage the creation of new jobs, new tax revenues and positive redevelopment.

"Insurance programmes like the one covering the Orlando NTC redevelopment offer several advantages. Insurance offers protection to all involved in the redevelopment. Additionally, it offers a guarantee that if an environmental incident was to occur or additional contamination was discovered, the situation would be resolved quickly because of the financial cushion that insurance provides.'' ECS has its headquarters in Exton, Pensilvania and is a leading provider of integrated environmental risk management services to business and industry worldwide through environmental insurance, specialised risk control services, and expert claims management.