For Lenders
Protect Your Loan Exposure
Ensure borrower insurance coverage is sufficient before a certificate of insurance gives you a false sense of security.
A Certificate of Insurance is not a policy review
Certificates of insurance do not reveal exclusions, limitations, or endorsements that materially affect coverage. Where loan collateral is concerned, "trust but verify" deserves a real policy review.
What our review uncovers
- Exclusions, limitations, and endorsements not visible on a certificate
- Building Ordinance or Law coverage gaps
- Business interruption coverage adequacy
- Flood and water-damage exclusions
- Deductibles that materially shift risk back to the borrower
- Litigation defense costs eroding policy limits
- Proper lender listing and notice-of-cancellation provisions
Five Reasons Lenders Should Outsource Insurance Due Diligence
A short briefing for lending teams.