Sompo launches specialised coverage for US commercial property

Sompo Global Risk Solutions (GRS), a part of Bermuda-based property and casualty re/insurer Sompo International Holdings, has partnered with Fisher Harris Shapiro (FHS), an independent risk management and insurance consulting firm, to offer specialised protection against covered property perils to US commercial real estate and financial institutions.

Sompo GRS Replacement Value Protection (RVP) helps protect lenders/owners in commercial real estate financings from a loss resulting from property damage greater than the replacement cost value of a property. It covers the shortfall between the outstanding loan balances and the combined value of the underlying property insurance proceeds and the land that collateralises the loan in the event of a covered cause of loss.

Sompo GRS RVP is designed to enhance the ability of real estate owners, developers and lessees to complete financings and reduce borrowing costs associated with individual loans. It is available to retail US insurance brokers and agents through FHS, with Sompo GRS individually underwriting each transaction.

Sompo GRS offers multi-line capabilities targeted to accounts in select industry verticals including real estate, hospitality, financial institutions, life sciences and professional services, and to Asian companies with operations in the US and Mexico.

FHS has worked as an outsourced risk manager for real estate owners and developers for 25 years.

Michael Chang, CEO of Sompo Global Risk Solutions, said: “We are pleased to expand our capabilities to include this specialized insurance tailored specifically for our real estate and financial institution clients. This innovative product was developed based on our extensive experience serving clients across two of our key industry verticals and we are thrilled to leverage the risk management consulting expertise of an industry leader like Fisher Harris Shapiro to offer this strategic solution to our clients and build with confidence.”

Marc Shapiro, president of FHS, commented: “On any given day, real estate firms and the lenders who finance their transaction face unforeseen situations and at times may require insurance solutions, like Replacement Value Protection to satisfy the loan. We are excited to partner with Sompo Global Risk Solutions to help these firms better understand and anticipate these risks so they can close any potential coverage gaps.”