Lexington Insurance Company, a Chartis company, today announced the introduction of LexEcoBankSM, first party coverage for the conservation and mitigation banks that are being developed and managed to provide natural resource values.
“Habitat credits - the financial instruments that represent the ecological value associated with an acre of ecosystem - are the currency of conservation and mitigation banking,” said Erik Nikodem, Senior Vice President and Property Division Executive of Lexington. “Investment returns suffer if habitat credit sales are delayed as a result of direct physical loss or damage to the habitat that reduces its ecological value. LexEcoBank was developed to protect both the property and the habitat credits.”
LexEcoBank is stand-alone named peril coverage for owners and operators of conservation and mitigation banks. In the event of a covered loss to the habitat before the bank enabling instrument is executed and credits can be sold, the policy will pay restoration expenses and bank credit loss incurred by the policyholder. Bank credit loss valuation can be written on an agreed value basis. If a covered loss occurs after the bank enabling instrument has been executed, the policy will pay restoration expenses required to meet the ecosystem performance criteria outlined in the instrument. Policy terms of up to 5 years are available to support the bank development lifecycle.
LexEcoBank joins UpGrade to Green® and CarbonCover® in Lexington’s EcoSurance® suite of products designed to support environmental sustainability.
For additional information about LexEcoBank, please contact Edward Fox, Inland Marine Product Line Manager at Lexington, at (617) 235-8970 or email@example.com. You can also visit us at www.lexingtoninsurance.com