In the event of a loan default and discovery of environmental contamination, the lender’s environmental policy offers coverage to help protect the collateral value and related financial losses that could hurt the lender’s bottom line.
Coverage Options
- Protection of the collateralized loan
- Covers bodily injury and property damage losses and cleanup costs resulting from pollution conditions
- Can be written on a single-site or on a portfolio basis
- Provides a competitive edge for lenders regarding standard environmental due-diligence techniques (a phase I assessment)
- Can replace or augment a lender’s own due-diligence process
