LENDER ENVIRONMENTAL COLLATERAL PROTECTION & LIABILITY INSURANCE
This secured creditor program is designed to protect lenders from the risk of impaired collateral due to environmental contamination.
Coverage is triggered in the event of a default on the loan and the presence of contamination. The policy will pay to either cleanup the site or pay off the balance of the loan, which ever is less. The coverage can also be structured to simply pay the outstanding loan balance.
The policy will also respond to third party claims brought against the lender for bodily injury and property damage arising out of environmental contamination.
The policy form has been approved by rating agencies for securitized mortgages.
PROPERTY TRANSFER LIABILITYSM INSURANCE
Environmental contamination on commercial real estate can result in costly cleanup efforts and potential third party claims for bodily injury or property damage. This has the potential to impact the cash flow of the borrower and result in a loan default.
Property Transfer Liability Insurance coverage issued in the name of the borrower can protect the borrower from the financial impact of cleanup costs and third party claims arising from environmental contamination. The policy "pays on behalf of" the Insured, thus preserving the Insured's cash flow.
The Lender is usually named as an additional insured and the policy may be transferred to the Lender in the event of foreclosure.
REMEDIATION STOP LOSSSM INSURANCE
Remediating a contaminated site carries the risk of potential cost overruns from a variety of sources:
- Discovery of additional contamination
- Changes in regulatory standards
- Failure of the remediation technology to achieve the required results; and
- Construction cost overruns.
Such cost overruns can impact the value of the collateral and the ability of an owner-borrower's ability to repay a loan.
Remediation Stop Loss insurance can effectively cap the remediation costs to a maximum amount. The insurance policy pays on behalf of the project owner for cleanup costs that exceed a policy attachment point, based on the based on the remediation cost estimate.
Lenders are usually named as an Additional Insured and the policy transferred to the Lender in the event of foreclosure.
With our Remediation Stop Loss Insurance in place, all parties involved in the property can proceed with remediation, or transfer, or financing of the property, knowing the maximum possible cost of clean up in advance.
Environmental Risk Agency
Our ability to develop and blend coverages to meet the unique needs of real estate owners has made Environmental Risk Agency a leading provider of environmental insurance for the real estate industry.
Our environmental policies are written at competitive rates by top "A rated" insurance companies.
For further information about our insurance products or about Environmental Risk Agency please contact one of our officers:
Bozeman Montana Office - Coverage Area: Nation Wide
Steven L Hargreaves, President (click for Bio Info)
Environmental Risk Agency LLC
1627 W Main Street
Suite 285
Bozeman MT 59715
406-994-9144 direct
406-994-9145 fax
shargreaves@ericcompanies.com
Oklahoma City Office - Coverage Area: Nation Wide
Gregory R Chamberlin, Vice President (click for Bio Info)
Environmental Risk Agency LLC
820 West Damforth Road, #A-10
Edmond OK 73003-5006
405-285-6202 direct
405-285-6201 fax
gchamberlin@ericcompanies.com
Marketing Region
Environmental Risk Agency distributes its innovative coverages throughout the United States. Coverages are also available to U.S. based clients for risks located in Europe and Asia.
Coverage Rating
Our environmental policies are written on the paper of top insurance companies, at competitive rates. Environmental Risk Agency policies are produced exclusively with domestic carriers that are "A" rated by the AM Best Company.
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