bankers environmental risk insurance

Insuring Your Bank Against Borrower’s Environmental Risk

When lending to companies that participate in activities that carry the risk of environmental damage, it is important for a lender to take steps to protect against the borrower’s default in the event of an ecological disaster. Failures such as oil spills or soil pollution have the potential to leave a company with steep fines, possibly leading to the company folding and defaulting on its loan. With bankers environmental risk insurance a bank is protected against the dangers associated with a borrower being involved in an environmental accident.

Protect Against the Unexpected

No company sets out intent on causing an ecological incident, but they are a reality in many fields. When lending to a company with increased risk of exposure to an environmental accident, bankers environmental risk insurance is a crucial safeguard against unforeseen problems. If the accident causes the borrower to default, the policy will pay out, shielding the bank from the full effect of the default.

Lending large sums to companies in environmentally risky fields without insurance is an unnecessary gamble. If your bank is considering a loan to a company, such as an oil company in control of a pipeline, where the possibility exists of a costly accident, protect your loan with bankers environmental risk insurance to ensure your investment is secure.