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Services

Pre-Close Lender Insurance Due Diligence

We ensure the borrower’s collateral is protected while streamlining the insurance review process for both the lender’s closing team and the borrower.

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Lender Risk Advisory Expertise

Having worked on thousands of loan transactions, we navigate clients through the full transaction lifecycle, from the critical process of reviewing and finalizing a loan or credit agreement to ensuring all insurance policies associated with the borrower’s collateral meet the lender’s requirements. We review the adequacy of coverage, the financial stability of insurers and the inclusion of appropriate lender protections, such as lender loss payee, additional insured protections or mortgagee clauses. 

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Comprehensive Due Diligence

Through thorough due diligence, we identify coverage gaps to safeguard financial interests, reduce uninsured risks and ensure regulatory compliance. By quantifying these gaps, we help lenders confirm that insurance will adequately cover potential losses, protecting collateral and preserving investment value.

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Due Diligence Services

  • Review existing insurance programs, including but not limited to property, business interruption, general liability and umbrella liability
  • Provide coverage recommendations, including adequacy of limits, coverage terms, insurance carrier financial rating, etc.
  • Review adequacy of business interruption coverage levels and complete income statement calculation

  • Produce actual cash value/cost to build/salvage value analysis
  • Conduct catastrophic loss analysis, including flood zone, earthquake probable maximum loss calculation, wind and wildfire exposure review

  • Identify any borrower aggregation concerns
  • Conduct a review of claims history and provide jurisdictional and industry peer comparison
  • Compare reported insurable values to average “cost to build” metrics by jurisdiction
  • Draft and/or review insurance provisions in loan agreement
  • Request and review certificates of insurance and lender specific endorsements (e.g. additional insured endorsements and lender loss payee endorsements)

  • Ensure compliance with applicable federal laws (i.e. Regulation H) as well as independent agency guidelines
  • Ensure compliance with insurance provision of loan agreement