Home Financial Institutions About BID BID Products BID Services Carrier Overviews Risk Management Consulting >				Risk Management Consulting Services BID's consulting services are focused on the special needs of financial institutions, particularly protecting their interests and exposures in lending, leasing, equity investing, and merger and acquisition activity. Our mission is to identify, communicate, and help resolve insurance related issues or potential issues that would impair the collateral or company operations from meeting your financial institution's performance standards and loan repayment expectations. We perform insurance risk management due diligence on significant transactions, whether routine or unusual. We will review your client's risk profile, insurance coverage, take the lead in eliminating issues, initiate policy documents, and communicate final results on your behalf. BID also performs risk management reviews of pending mergers, acquisitions, portfolios, bankruptcies or difficult loan restructurings. Experience indicates that the documents relied upon by financial institutions to cover collateral are changed by the client, their agent, or the insurer up to 60% to 70% of the time. There are three major problems to be addressed to assure adequate protection of asset based loans: Does the borrower have an insurance program adequate to protect its assets and profits? (If it sustains a catastrophic loss will it be able to continue to pay its debt service)? Have the borrower's insurance policies been properly amended to add the insurable interests of the financial institution? (Contractual agreements on asset based loans usually require the lender to be both "additional insured" and "loss payee". Most insurance documents fail to accomplish the needs of the contractual agreements). If all of the insurance documents are correct, they still have expiration dates. It is the responsibility of the financial institution (or its agent) to obtain renewal documents on a timely basis. This can be a difficult problem to overcome. (As many as 75 percent of all open loan files have improper renewal documents such as certificates and endorsements that add the financial institution's insurable interest). BID will identify the issues, gaps and changes in documentation and work to bring your loan documents back into compliance quickly, securing your collateral once again.
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