Business Loan Failure to Survive
This unique insurance protection was designed to indemnify a lender for the balance of money at risk given a contractual business loan agreement. A premature death or disablement of the borrower will usually trigger an immediate call on the loan. The protection of other business assets becomes even more essential during this type of situation.
Often times there is a desperate need for urgency when dealing with a loan approval and the funding of the loan. Time is always of the essence and unfortunately insurance protection is often times left unattended until the very end.
Take the case of…
Mr. Real Estate Developer who had a project that he needed to get funded. The lender was requiring insurance to be in place on the borrower. In hopes of closing the deal by the end of the month Mr. Real Estate Developer’s agent called Petersen International Underwriters on a Thursday afternoon looking for help. Jumping into action, Petersen International Underwriters quoted $5,000,000 of coverage using our Business Loan Failure to Survive Plan.
The only underwriting requirements were a one page application and a copy of the loan documents. Receiving this information on Friday morning, Petersen International Underwriters was able to underwrite and bind the coverage that same day. By emailing the agent a copy of the declaration page to provide the bank with proof of coverage, the lender was then able to fund the loan that same day.
Policy / Underwriting Information
- Term of insurance is from 90 days to 12 months
- Renewals are considered if extended coverage is needed
- A copy of the loan agreement is required
- Benefit amount will not exceed the balance of the loan