CUNA Mutual Group has teamed up with Lee & Mason Financial Services Inc. to offer a stand-alone commercial foreclosure property and liability insurance policy for credit unions' member business loans.
Credit unions can now choose to cover the property (building, contents, including equipment) and/or business liability. The commercial foreclosure policy features vacant, partially vacant, and business personal property coverage; three, six, nine, or 12-month policy term options; single-coverage property, single-coverage business liability or a package including both; basic (vandalism and malicious mischief) or special perils (includes the basic perils and theft); actual cash value valuation; and deductible, limits of liability, and comprehensive options.
"Commercial and residential property foreclosures are increasing and creating a potential coverage gap in a credit union's insurance program," said Michael Harty, director of credit union protection product distribution for CUNA Mutual.
Harty said CUNA Mutual's bond policy protects a credit union against coverage gaps for residential foreclosures. The company's partnership with Lee & Mason now enables credit unions to better manage risks associated with owning an increasing number of foreclosed commercial properties.