Environmental Lender PolicyCoverage is provided to the lender only. For the last 10+ years this policy has been implemented by the leading Wall Street lenders to the local community banks to close loans quickly and with protection of ‘safe and sound’ lending required by the FDIC and other regulators.
Unique Policy
- Triggered by both (1) default by borrower and (2) pollution conditions
- Underwritten based on bank’s underwriting analysis and applicable environmental reports
Coverages – For Lender Only
- On-site cleanup costs
- Off-site cleanup costs (migrating from or to the collateral property)
- Third party Bodily Injury and Property protection (diminution in property value)
- Legal Defense
“Portfolio Policy” vs. “Single Site” Policy
Portfolio policies
Can Replace ‘Traditional Due Diligence’
Portfolio policies are designed to cover a commercial lenders loan originations and pricing is based upon the anticipated number of loans submitted for insurance.Applications & Benefits – Portfolio Policies
- Cost effective · Premiums <$2,000 (less than a Phase I)
- Time effective · Decisions within 2 days
- 10 year policy coverage
- Replace Phase I
- Replace Phase II
Single Site Policies
Single site policies are designed to cover a single transaction (1 loan/property) and is underwritten based upon the lender’s underwriting analysis and the environmental risk. If you have a great transaction “but for” concerns over environmental risk – a single site environmental lender policy can solve that concern and close the loan with financial security.
Applications & Benefits – Single Site Policies
- 10 year policy coverage with dedicated coverage to lender only
- Better suited to lender vs. PLL policies for borrower
- Cost and time effective · Premiums, deductibles & coverage superior to PLL
- Replace Phase II
- Replace indemnification; recourse
- Coverage for regulatory ‘reopener’ – see Vapor Intrusion
- Coverage for state fund failures
In some states – premiums are subsidized by government - See Mass. BRAC Program
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