Lexington Insurance Company, a Chartis company, has launched LexEcoBank, a first party coverage for the conservation and mitigation banks, developed and managed to provide natural resource values.
Lexington senior vice president and property division executive Erik Nikodem said if the habitat credit sales are delayed due to direct physical loss or damage to the habitat that reduces its ecological value leads to decrease in investment returns.
Developed to protect both the property and the habitat credits, the LexEcoBank is a stand-alone named peril coverage for owners and operators of conservation and mitigation banks.
The policy will pay restoration expenses and bank credit loss incurred by the policyholder in case of covered loss to the habitat before the bank enabling instrument is executed and credits are be sold.
In the event a covered loss occurs following the implementation of bank enabling instrument, the policy will pay restoration expenses needed to meet the ecosystem performance criteria outlined in the instrument.
Policy terms of up to 5 years are offered to support the bank development lifecycle.
LexEcoBank joins UpGrade to Green and CarbonCover in Lexington’s EcoSurance suite of products, which are designed to support environmental sustainability.