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Axa XL adds pollution endorsement for lenders
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Business Insurance
Axa XL said Thursday it has added an endorsement to its pollution and remediation legal liability policy to cover lender-related risks.
The protective environmental asset coverage endorsement covers mortgage impairment losses caused by pollution at a covered location, the insurer said.
Coverage includes the lesser of the loan balance or cleanup costs after a loan default; business interruption for a pollution-related foreclosure; remediation expenses after a foreclosure; bodily injury and property damage before a default; non-owned disposal sites and contingent transportation coverage; and diminution in value.
The claims-made coverage is designed for mortgage lenders and mezzanine-layer lenders.
The full $50 million policy limit is available, an Axa XL spokesman said.