Axa XL offering lenders’ pollution endorsement

Axa XL Americas said Wednesday it is introducing a Protective Environmental Asset Coverage Enhancement, an endorsement specifically designed to protect lenders’ financial interest against losses from loans at fixed facilities as a result of sudden and gradual pollution conditions.

There is a $50 million limit, according to a spokeswoman.

Axa XL said in its statement the endorsement offers terms of up to 10 years with full policy limits and broad pollutants and pollution condition definitions under the insurer’s Pollution and Remediation Legal Liability policy.

It also provides coverage for the lesser of loan balance or cleanup cost in the event of a loan default; coverage for bodily injury and property damage before a default scenario; available coverage for mezzanine lenders; and the ability to provide coverage for an aggregate self-insured retention amount and primary insurance coverage without right of contribution.