The Chubb Group of Insurance Cos. has introduced Collateral Impairment and Environmental Liability Insurance for Financial Institutions to commercial real estate lenders. The coverage is available through Environmental Warranty Inc., a national insurance brokerage specializing in environmental risk protection. The insurance, underwritten by Chubb’s Department of Financial Institutions, helps protect lenders from financial loss resulting when a loan is in default and its collateral is contaminated.
The policy reimburses the insured for the outstanding loan balance or cleanup costs, depending on the coverage the insured chooses. The policy also reimburses the insured for damages or cleanup costs it becomes legally obligated to pay to third parties during the policy period.
Policies are available for terms up to 20 years on individual loan limits ranging from $1 million to $5 million, subject to an aggregate limit applicable to a portfolio of loans. This aggregate limit ranges from $10 million to $50 million. A one time per loan premium, typically ranging from $250 to $1,500, is paid at loan closing
Topics Trends New Markets Pollution Market
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