Coverage made to fit your risk

The policy provides collateral value protection in the event of a loan default and a newly discovered pollution event at the covered location. When this occurs, the policy can pay out one of two ways:

• The insured receives the lesser of the outstanding loan balance and extra expenses, or the estimated cleanup costs1.
• The insured receives the outstanding loan balance and extra expenses.

Additional policy highlights

• First-party cleanup costs for claims made after the lender has foreclosed on a covered location
• Third-party bodily injury and property damage claims, including defense costs, caused by a pollution event during the policy period
• A broad definition of default, including both monetary and technical default
• Coverage on a single transaction or master portfolio basis
• Multi-year policies, up to the term to maturity of the insured loan
• A waiver of subrogation against borrower in possession
• Assignment of interest may be assigned to a successor lien holder
• No minimum deductible is required.

Up to $25 million. Higher limits may be available subject to underwriting considerations.

Insuring Agreements

These coverage's only apply if and to the extent specifically listed as provided in item 5 of the declarations.

A. Existing pollution event

1. First Party Cleanup Costs
We will pay “cleanup costs” to the extent resulting from an “existing pollution event” that is on, at, under or that is migrating or has migrated beyond the boundaries from a “covered location" if that "existing pollution event" is first "discovered" during the “policy period” and the "discovery" is reported to us in writing during the “policy period” or within sixty days following the end of the "policy period".

2. Third Party Liability
We will pay “loss” that an "insured" is legally obligated to pay as a result of a "claim" resulting from an "existing pollution event” in the "coverage territory", provided the “claim” is first made against the "insured" during the “policy period", and the "claim" is reported to us in writing during the “policy period”, within sixty days following the end of the "policy period" or during an optional extended reporting period, if purchased.

B. New pollution event

1. First Party Cleanup Costs
We will pay “cleanup costs” to the extent resulting from a “new pollution event” that is on, at, under or that is migrating or has migrated beyond the boundaries from a “covered location", if that "new pollution event" is first "discovered" during the “policy period” and the "discovery" is reported to us in writing during the “policy period” or within sixty days following the end of the "policy period".

2. Third Party Liability
We will pay “loss” that an "insured" is legally obligated to pay as a result of a "claim" resulting from a "new pollution event” in the "coverage territory", provided the “claim” is first made against the "insured" during the “policy period", and the "claim" is reported to us in writing during the “policy period”, within sixty days following the end of the "policy period" or during an optional extended reporting period, if purchased.

C. Crisis management expense

We will pay "crisis management expense" in response to a “pollution event” in the "coverage territory" that the "named insured" reasonably expects could give rise to "loss" or "cleanup costs" under the policy and subjects the "named insured" to significant adverse regional or national media attention. "Crisis management expense" must be first incurred by the "insured" during the "policy period".

 
Legends Environmental Insurance Services ~ 130 Vantis, Suite 250, Aliso Viejo, CA 92656 ~ Lic # 0c79875 ~ Phone: 800.992.6999

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