Distinguished offers a Pollution Legal Liability Plus (PLLP) form for lenders. Coverage is specifically tailored for lenders and provides protection against the loss of collateral value in a covered location because of a pollution condition or an indoor contaminant condition, in the event of a loan default at a covered location, which serves as the loan collateral. The coverage is for the lesser of the clean-up costs or outstanding loan balance owed to the lender by the borrower after the default.
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Product Highlights:
- Coverage for clean-up costs
- Coverage for bodily injury and property damage (including natural resource damage)
- Additional legal costs may be provided outside the limit
- Occurrence coverage for the insured’s contracting services at job sites
- Occurrence non-owned disposal site and transportation coverages
- Business interruption, including contingent business interruption and delay costs for new pollution conditions
- Mezzanine lenders may be added to the policy for additional premium
- Borrowers may be added to the policy for additional premium with exclusions that will not necessarily apply to the lender
- Policy can be assigned to a new lending institution if/when loan is sold
- Types of loans covered
- Acquisition
- Refinance
- Construction – development, tenant improvement
- Bridge loan
- Single site or portfolio transaction
- Legal defense expense up to 100% outside of limits
- Coverage provided by SiriusPoint
Capacity:
- Limits of Liability up to $25MM/$25MM limits
- Policy terms up to thirteen (13) years
- Minimum SIR can be as low as $0 depending on favorable loan terms and site conditions
For more information, please contact: Doug Stepenosky at [email protected].
The information contained herein is intended for informational purposes only. Insurance coverage in any particular case will depend on the policy in effect and its governing terms, conditions, exclusions, and the facts of each situation. Please refer to the policy forms for details on specific coverage. Insurance coverage may not be available in every jurisdiction.
