Environmental & Pollution Liability for lenders
Information and online form to get you started
Typical Customers: Any types of banks or specialty lenders.
Some Potential Exposures:
underground/above ground storage tank leaks
spills & seepage from manufacturing/construction operations
release of chemicals stored on the property
ground water contamination
Products Available:
Policy pays the lesser of either the outstanding loan balance or the estimated cleanup cost
in the event of default. If the estimated cleanup costs are at least 50 percent of the outstanding
loan balance, the company will pay either the outstanding loan balance or the estimated cleanup costs,
whichever the insured chooses.
First-party cleanup cost coverage is provided for claims made after foreclosure. Coverage is also
provided for third-party bodily injury and property damage claims, including defense costs.
Minimum Premium(s): Premiums are a function of the loan amount,policy term and a number of other
underwriting factors, however, $10,000 is a common base price.
Additional details: Coverage can respond to either pay for remediation costs or the loan balance due
(whichever is less) when a default is due to discovering environmental damage on the site.
Common Issues: There are two main parts to the underwriting process for this type of policy,
the Financial side and the Environmental side. Most underwriters require review of the Lender's
financial underwriting information as part of the quoting process. Some lenders do not like to provide
this info, but it IS necessary for quoting.
Any Site Assessments (Phase I, Phase II, etc) that can be provided to the underwriter will help speed up
the Environmental portion of the underwriting process.
Chase Carmen Hunter, www.ChaseAgency.com, and Chase Financial Services Since 1993 offer services to residents of any country in the world including the following states of the United States of America:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts,
Michigan,
Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma,
Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington,
West Virginia, Wisconsin, Wyoming. Not all products are available in all states.
