With a growing population comes a growing risk to the environment. Issuing commercial property loans to businesses can make the financial institution at risk for environmental liabilities at the mortgaged property. Cover the inherent risks to the financial institution with bankers environmental risk insurance.
One key way the financial institution be responsible for environmental claims is when the business defaults on the loan. The financial institution can be left fully responsible for the environmental damage caused by the mortgaged property.
People can become injured by the pollution caused by the property. They can inhale airborne pollutants, slip on leaking fluids, drink contaminated water and have long-term effects resulting from the pollution. Affected individuals can sue for injuries resulting from environmental damage.
Pollution can cause extensive property damage not just at the commercial site but in the surrounding land, water and air. The cleanup cost can be an expensive, drawn-out process for both the bank and the offending company.
Bankers environmental risk insurance helps the financial institution cover the financial costs associated with funding companies with environmental liabilities. When both the business and the financial institution are insured, claims can be settled quietly. Protect the financial institution in the event an environmental risk does occur.