Recognizing the primary burden associated with tracking commercial collateral is efficiently and accurately verifying limits on the multiple pieces pledged, most lenders opt to eliminate insurance tracking after proof of coverage is obtained at closing. Instead, they purchase a Commercial Lender’s Single Interest (LSI/VSI) policy that eliminates the need to continuously verify coverage and react to cancellation notices while providing single-interest physical damage coverage.
Commercial lenders cannot afford for their collateral to operate without insurance. Commercial Lender's Single Interest coverage eliminates a major source of headaches and expenses for lenders. It provides all-inclusive protection against an unexpected write-off when their collateral is damaged or destroyed. Without this coverage, a loss that occurs could jeopardize the borrower's ability to repay the outstanding loan balance.
Commercial Lender's Single Interest (LSI) coverage protects an entire loan portfolio against uninsured losses to damaged, repossessed collateral. When a lender purchases a Commercial LSI policy, it immediately covers both new and existing loans, essentially eliminating the need to track insurance policies for each collateral and request force placed coverage.
There’s no one-size-fits-all policy that’s right for every lender which is why Lee & Mason offers customized policies to meet your organization’s portfolio and needs. Complete an application to obtain a formal proposal or contact your representative to learn more. The most common features include: