Insurance – Limitations – Liabilities

There are several companies that provide environmental due diligence products (LenderCheck, Loan Check, Environmental Screens, RSRA’s, Etc.) to the financial lending community. The biggest company (The 900lb. Gorilla) is very well known and has been in business the longest of any of the companies.  Of these companies ERS – Environmental Record Search is the ONLY ONE that provides you with an actual reduction in YOUR financial liability and risk.

What does that statement truly mean in relation to the following?


  1. If your current environmental data/ report vendor provides your Company with $30 million of General Liability and/or Errors and Omissions Insurance (professional liability), does this protect your Company? NO!

         Why not?

You are buying environmental information, products, services, consulting and environmental opinions. The policy form must include Environmental Liability (CPL (Pollution) for the Errors and Omissions Insurance (Professional Liability). Almost ALL General Liability and/or Errors and Omissions Insurance (Professional Liability) EXCLUDES anything ENVIRONMENTAL unless expressly stated and purchased.  Therefore, if your provider misses a known site, spill, leak, etc. on the subject site, your COMPANY has NO recourse!   Any cleanup, remediation, etc. is your responsibility upon default and/or foreclosure.  Their report afforded you absolutely NO Risk Reduction and may have actually increased your Risk and Liability!

           Does ordering from ERS-Environmental Record Search protect your company? YES!


ERS – Environmental Record Search has $3,000,000 of Environmental General Liability and/or Errors and Omissions Insurance   (Professional Liability). In addition, ERS provides a Certificate of Liability Insurance for each and every LenderCheck Report!  Click on the following link to request your copy of our Certificate of Environmental Liability Insurance.

2.  Liability limitations also virtually make any insurance coverage worthless. The 900lb. Gorilla states the following in each and every report  provided to its clients: “Any liability on the part of the 900lb. Gorilla Inc. is strictly limited to a refund of the amount paid for this report.” So, if you PAID $100 for the report you will receive $100 for their negligence and to remediate the site. Good Luck!


1.    Excessively extreme limitations of use statements within the Environmental Report virtually make the report worthless unless you check all the data yourself and you are an Environmental Professional. The 900lb Gorilla makes the following statement: “disclaims any such warranties or fitness for a particular use or purpose” for all their reports. Does this mean your Company should not use this for screening and/or Environmental Due Diligence? ERS –Environmental Record Search stands behind its reports!


2.    Accepting a report in an “AS IS” condition and stating the following: “Any estimates, analyses, ratings, environmental risk levels, or risk codes provided are for illustrative purposes only” and “all information provided should not be interpreted as providing any environmental risk level or decision for the property”! Then the 900lb Gorilla seems to imply: Only a Phase I Environmental Site Assessment completed by an Environmental Professional can determine the risk for any property. WHY buy their products? THEY DON’T COVER YOU AT ALL. Your Company actually assumes ALL the RISK for the data and professional opinions they provided to you! ERS-Environmental Record Search REDUCES YOUR RISK and covers you with an actual insurance policy covering ENVIRONMENTAL!

3.   Other environmental database Companies, including the 900lb Gorilla, do not stand behind their environmental professional’s opinion (ex. SBA RSRA Report).   The following is one of those statements from their reports: “The Professional Opinion Summary and/or Details described in this Report are solely those of Consultant and not the 900lb Gorillas” “Consultant is not affiliated with ________ in any way, shape or form”.   WOW! You can’t really count on their reports and opinions! ERS Environmental Record Search ONLY uses its own in-house SBA and EPA Qualified Environmental Professionals.   If using any other Vendor besides ERS-Environmental Record Search, your Company must have an Environmental Professional on staff to RELY on the conclusions and interpret the reports, otherwise you are INCREASING your RISK and Financial Liability!


WWW.LENDERRISK.COM   800-377-2430


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