Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage Clause Samples
This clause requires a party to maintain specific types of insurance, including general liability, errors and omissions (E&O), and fidelity coverage, throughout the duration of the agreement. It typically obligates the party to obtain and keep these insurance policies in force, often specifying minimum coverage amounts and requiring proof of insurance upon request. The core function of this clause is to protect both parties from financial losses arising from professional mistakes, employee dishonesty, or other covered risks, thereby allocating risk and ensuring financial responsibility.
POPULAR SAMPLE Copied 1 times
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. (a) The Master Servicer on behalf of the Trustee, as mortgagee of record, shall use efforts consistent with the Servicing Standard to cause the related Mortgagor to maintain, to the extent required by each Mortgage Loan (other than an Outside Serviced Mortgage Loan) and each Serviced Companion Loan (except to the extent that the failure to maintain such insurance coverage is an Acceptable Insurance Default), and if the Mortgagor does not so maintain, shall itself maintain (subject to the provisions of this Agreement concerning Nonrecoverable Advances and to the extent the Trustee as mortgagee of record has an insurable interest and to the extent available at commercially reasonable rates), (i) fire and hazard insurance (and windstorm insurance, if applicable) with extended coverage on the related Mortgaged Property in an amount which is at least equal to the lesser of (a) one hundred percent (100%) of the then “full replacement cost” of the improvements and equipment (excluding foundations, footings and excavation costs), without deduction for physical depreciation, and (b) the outstanding principal balance of the related Mortgage Loan and the related Serviced Companion Loan(s) or such greater amount as is necessary to prevent any reduction in such policy by reason of the
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. (a) The Master Servicer on behalf of the Trustee, as mortgagee of record, shall use efforts consistent with the Servicing Standard to cause the related Mortgagor to maintain, to the extent required by each Mortgage Loan (other than an Outside Serviced Mortgage Loan) and each Serviced Companion Loan (except to the extent that the failure to maintain such insurance coverage is an Acceptable Insurance Default), and if the Mortgagor does not so maintain, shall itself maintain (subject to the provisions of this Agreement concerning Nonrecoverable Advances and to the extent the Trustee as mortgagee of record has an insurable interest and to the extent available at commercially reasonable rates), (i) fire and hazard insurance (and windstorm insurance, if applicable) with extended coverage on the related Mortgaged Property in an amount which is at least equal to the lesser of (a) one hundred percent (100%) of the then “full replacement cost” of the improvements and equipment (excluding foundations, footings and excavation costs), without deduction for physical depreciation, and (b) the outstanding principal balance of the related Mortgage Loan and the related Serviced Companion Loan or such greater amount as is necessary to prevent any reduction in such policy by reason of the application of co-insurance provisions and to prevent the Trustee thereunder from being deemed to be a co-insurer and provided such policy shall include a “replacement cost” rider, (ii) insurance providing coverage against 18 months (or such longer period or with such extended period endorsement as provided in the related Mortgage or other Loan Document) of rent interruptions and (iii) such other insurance as is required in the related Mortgage Loan and the related Serviced Companion Loan. Subject to Section 3.16 of this Agreement, the Special Servicer in accordance with the Servicing Standard and to the extent available at commercially reasonable rates (as determined by the Special Servicer in accordance with the Servicing Standard), shall cause to be maintained for each REO Property (other than an REO Property related to an Outside Serviced Mortgage Loan) no less insurance coverage than was previously required of the Mortgagor under the related Loan Documents (except to the extent that the failure to maintain such insurance coverage is an Acceptable Insurance Default); provided that to the extent the Loan Documents require the related Mortgagor to maintain insurance with an insurer rated b...
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. (a) The Master Servicer on behalf of the Trustee, as mortgagee of record, shall use efforts consistent with the Servicing Standard to cause the related Mortgagor to maintain, to the extent required by each Mortgage Loan (other than an Outside Serviced Mortgage Loan) and each Serviced Companion Loan (except to the extent that the failure to maintain such insurance coverage is an Acceptable Insurance Default), and if the Mortgagor does not so maintain, shall itself maintain (subject to the provisions of this Agreement concerning Nonrecoverable Advances and to the extent the Trustee as mortgagee of record has an insurable interest and to the extent available at commercially reasonable rates), (i) fire and hazard insurance (and windstorm insurance, if applicable)
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. (a) The Master Servicer on behalf of the Trustee, as mortgagee of record, shall use efforts consistent with the Servicing Standard to cause the related Mortgagor to maintain, to the extent required by each Mortgage Loan (other than an Outside Serviced Mortgage Loan) and each Serviced Companion Loan (except to the extent that the failure to maintain such insurance coverage is an Acceptable Insurance Default), and if the
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. (a) (i) The Servicer shall, in accordance with Section 3.04, monitor compliance by the Lessees with their requirements under the Leases to maintain fire and hazard insurance, public liability and other insurance required by the Leases. If the Servicer determines that insurance is not being maintained in accordance with the terms of any Lease, the Servicer shall notify the Borrower and shall make a demand upon the related Borrower to cause to be maintained insurance in accordance with the related Lease or if such Lease is no longer in full force and effect, then in accordance with the related Mortgage. In the event that the Servicer deems it necessary or advisable in accordance with the Servicing Standards, the Servicer shall obtain such insurance required to be maintained under the applicable Lease or Mortgage, as the case may be, advancing its own funds if necessary as a Property Protection Advance.
Maintenance of Insurance Policies and Errors and Omissions and Fidelity Coverage. The Manager shall maintain or cause the related borrower to maintain with respect to each mortgage loan, fire and hazard insurance with extended coverage on the related mortgaged property in an amount which is at least equal to the lesser of the replacement cost of the improvements which are part of such property and the investment value thereof, but in no event greater than the maximum amount of such insurance required by the terms of the related note or mortgage. It is understood and agreed that no earthquake or other additional insurance other than flood insurance is to be required of any borrower or to be maintained by the Manager other than pursuant to the terms of the related note or mortgage and pursuant to such applicable laws and regulations as shall at any time be in force and as shall require such additional insurance. If permitted by the related note or mortgage, the Manager may maintain, if available, or, if applicable, may require the related borrower to maintain other forms of insurance including but not limited to, loss of rents endorsements, business interruption insurance or comprehensive public liability insurance. If the mortgaged property was located at the time of origination of the mortgage loan in a federally designated special flood hazard area, the Manager will cause the related borrower to maintain or will itself obtain flood insurance in respect thereof to the extent available. Such flood insurance shall be in an amount equal to the lesser of (i) the unpaid principal balance of the related mortgage loan and (ii) the greater of (x) the maximum amount of such insurance required by the terms of the related note or mortgage and (y) the maximum amount of such insurance as is available for the related property under the national flood insurance program (assuming that the area in which such property is located is participating in such program). The Manager agrees to prepare and present claims under each related insurance policy in a timely fashion in accordance with the terms of such policy and to take such reasonable steps as are necessary to receive payment or to permit recovery thereunder. All policies required hereunder shall name the Manager and the Company as loss payees and, to the extent available and applicable, shall contain negative amortization endorsements.