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Product Overview: Credit & Loan Protection Insurance

Insurance for Financial Institutions from AmTrust Warranty & Specialty Risk

AmTrust Warranty & Specialty Risk offers innovative insurance products for all types of lending institutions. Our programs offer coverage to lenders to protect their loan portfolios or help lenders expand their offerings and provide borrowers peace of mind if life takes an unexpected turn.
 

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What Is Credit & Loan Protection Insurance?

Financial institutions such as banks, credit unions, mortgage servicers and other lending institutions face a variety of risks in a heavily regulated industry. Both the lender and the borrower must have the right insurance coverage to protect them from certain losses. Loan protection insurance programs are designed to protect the lender from risks that come with providing loans while offering financial support during a borrower’s time of need. 

Loan Protection Programs for Lenders

We create bespoke loan portfolio protection programs that allow our partners to loan to a broader spectrum of financial services clients. Coverages include:


Lenders Protection Program (LPP)​ 

LPP combines AmTrust’s auto loan default insurance with an automated risk management software that enables lending institutions to approve a broader range of loans while maintaining a profitable portfolio.


Lender’s Single Interest (LSI)​ 

LSI provides blanket coverage to protect against risks such as physical damage, theft, imperfect title, and accidental loss of collateral property. *Applicable on autos, light trucks, watercraft, RV/Mobile homes and powersports.​ 


Blanket Mortgage Hazard​

Provides lender with uninsured property coverage on their entire loan portfolio. Covers residential, commercial, and mobile home loans.​ 


Blanket Mortgage Impairment​ 

Blanket coverage of a lender’s entire mortgage loan portfolio protecting the value of the lender’s investment if a​ mortgaged property is damaged after the insurance coverage lapses.​ 

Loan Protection Programs for Borrowers

Our programs keep your customers’ investments and payments secure with payment and loan protection. Coverages include:


Job Loss Protection Program (JLP)​ 

The JLP program is designed to assist borrowers in maintaining loan payments in the event of involuntary loss of employment.​ 


Loss of Life Protection​ 

Cancels the borrower’s outstanding loan balance up to the program’s maximum limit. Accidental Loss of Life Protection is available at a reduced cost.


Unpaid Family Leave of Absence Protection​ 

Waives the borrower’s monthly loan payment while the borrower is on an unpaid leave of absence for a qualified​ medical or family reason.​ 


End of Watch (EOW)​ 

EOW is a blanket program provided to borrowers employed as public servants (county, state or federal government), covering outstanding loan balances up to the program’s maximum limit if they lose their life in the line of duty. ​ 

Disability Protection

Cancels the borrower’s loan payments for a defined number of months when the borrower is disabled and unable to​ work.​ 

Hospital Stay Protection​ 

Waives one monthly loan payment when the borrower incurs a qualifying hospital stay.​ 

Prepaid Legal Services (PLS)​ 

PLS is an employee benefit program offering legal services and consultation for traffic tickets, drafting of wills,​ criminal defense, etc.​ 


 

Frequently Asked Questions About Credit and Loan Protection Insurance Programs
What are loan protection programs?

A crucial part of risk management for banks, lenders and creditors is being prepared for the unexpected. Businesses in the financial services sector must obtain coverage to protect the lenders and the borrowers from an array of risks, from loan default coverage to keeping their investments secure.  


Loan protection insurance helps cover debts on certain loan types should the borrower lose the ability to pay for a covered event.  

Why should a financial institution have loan protection programs in place?

Offering a loan protection program to customers is an essential relationship-building tool. Financial institutions let their customers know they value their business and are looking out for their needs. Additionally, having various loan protection products available helps ensure the business is safe from default risks, which can help improve its bottom line. Loan protection programs can enable a lender to service for borrowers.  

Why should a borrower obtain a loan protection policy?

Financial wellness and stability are key in today’s ever-changing market. Loan protection programs can provide a borrower peace of mind that should an event like job loss, disability, leave of absence, or a long hospital stay occur, their payments will continue to be made.  

How much does loan protection insurance cost?

The cost for loan protection insurance programs varies by factors related to the underlying loan collateral and borrower attributes. The costs may differ based on location and the type of coverage needed

Contact AmTrust Warranty & Specialty Risk for a Customized Loan Protection Program for Your Financial Institution

To learn more about our financial institutions insurance coverage and loan protection programs, please contact AmTrust Warranty & Specialty Risk today.  
 

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