Premises Policies for Commercial Lenders

Why is it important for lenders to protect themselves when loaning money to a commercial customer?

A lender’s objective is to facilitate a mutually beneficial relationship with clients to help them achieve their business goals. But what happens when a borrower fails to honor their obligation to repay the lender?

In the instance a borrower is unable to fulfill their obligation, the commercial lender may assert their equitable rights to assume management of the borrower's property. The property assumed may have significant environmental exposures, which can result in major financial hardships for the lender to resolve.

Our Environmental Premises Commercial Lender policy is specifically tailored to protect secured creditors from liability arising out of known and unknown pollution conditions at the insured real estate.

Great American understands the intricacies of environmental exposures and can help protect commercial lenders against experiencing further loss – empowering financial institutions to not only be made whole in the default of a loan should there be a known environmental issue, but it also affords lenders several options to accomplish this.

5481-ENV-Winter Newsletter 2020-01_web1Allowing for creative loan negotiations (Brownfield Tax Credits)
5481-ENV-Winter Newsletter 2020-02_web2Repaying the principal balance of the insured loan
5481-ENV-Winter Newsletter 2020-03_web3Maintaining value of a performing property
5481-ENV-Winter Newsletter 2020-04-04_web4Providing the timely payment of estimated remediation cost

The following video illustrates how Great American Environmental can help mitigate the burdens lenders may face during these difficult situations. We hope you enjoy!

Understanding Commercial Lender Premises Policies

To learn more about obtaining a Lender policy, contact Eric McCabe, National Underwriting Director.

Eric McCabe, National Underwriting Director
Great American Environmental Division

Eric serves as National Underwriting Director for Great American’s Environmental Division. He has accumulated over 20 years working in the environmental field. Along with his extensive experience in the insurance field, Eric holds his J.D. and previously worked as an environmental chemist. He is based out of our New York office.