Financial institutions, banks and mortgage companies are the address for borrowing money to facilitate a real estate purchase. From the lender’s perspective, however, there remains a heightened concern about possible liability in regard to pollution cleanup.
This is the basis for corresponding Commercial Lenders Environmental Insurance, also known as Secured Creditor Environmental Exposure Insurance.
Lenders Environmental Liability Insurance
This coverage enables lenders to take on more exposure than before when considering loans to real estate buyers.
In the event a financial institution provides funds for a property that later is found to have hazardous waste, the policy will protect the lender in a loan default situation from government mandated cleaning costs or loan balance. If there is no loan default, the insurance will protect both the lender and the land or property owner. The coverage also shields the above parties from remedial investigation and feasibility analyses and legal fees associated with clean-up, bodily injury and property damage liability.
This form of insurance is written on a single-site or portfolio basis.
To learn more about a Lenders Environmental Liability Policy, speak to the commercial insurance experts.
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Summary: With a Lenders Environmental Liability Insurance policy a commercial lender is protected from the costs of potential pollution repercussions associated with funded property.