Securitization Collateral Protection and Environmental Liability Insurance

Zurich provides securitization collateral protection and environmental liability insurance to address the special needs of loan originators, investors, trustees and servicers that participate in the commercial mortgage-backed securities (CMBS) market.

In the event of default and prior to foreclosure, the policy will pay the insured the lesser of either the outstanding loan balance or the estimated cleanup costs due to contamination on the real estate collateral. Whenever the estimated cleanup costs are at least 50 percent of the outstanding loan balance, the company will pay either the outstanding loan balance or the estimated cleanup costs, whichever the insured chooses.

First-party cleanup cost coverage is provided for claims made after foreclosure. Coverage is also provided for third-party bodily injury and property damage claims, including defense costs.