What you don’t know about your borrower’s insurance policy can hurt you!
While there are some elements of risk that you can’t control, why not control the elements you can... Using our Lender Insurance Review Services from Commercial Insurance Consultants, you can significantly reduce your risk exposure by evaluating your borrower’s insurance risk and fixing it before it becomes your problem.
Are you aware a certificate of insurance gets you nothing in a court of law? Are your interests properly protected?A certificate is issued as a matter of information only and it confers no right upon the certificate holder? A certificate does not amend, extend or alter the coverages afforded by the policies noted on the document. Does this document help you sleep better? It shouldn’t. There is more appropriate documentation that will provide you with enforceable evidence of coverage. Brokers like to deliver “certificates of insurance, because they can be issued without the approval of the insurance carrier. Are you comfortable with a document that the insurance carrier is not bound to?
Limits are not enough. Do you know how your borrower’s policy will respond for your protection in the event of a loss?
Liabilities — are you exposed to vicarious liabilities that may arise out of your interest in the assets of your borrowers?
You could be exposed to vicarious liabilities that will arise out of your interest in the assets of the borrower. Your borrower’s insurance program should provide the primary and non-contributory coverage for your defense and indemnity for these vicarious liability exposures. Does it?We offer an independent, third party evaluation of your borrowers program tuned to protecting the lender’s interest.
That in 80% of our reviews the lender is not properly named on their borrower’s policy? Sometimes the correct borrower is not properly named on the insurance policy. If your borrower is not properly named on a policy, they cannot provide the requite indemnity and defense to the lender.
Unforeseen, uninsured, underinsured, unprotected — you never want to hear these words if your borrower has a loss. We can help you identify and reduce these unnecessary and avoidable financial risks.