‘Green’ Upgrades May Mean Checking Your Coverage

As Kermit the Frog once said, “It’s not easy being green.” Despite many obvious advantages to the greening of your commercial space, green upgrades may mean your current insurance coverage could be insufficient in the event of a loss.

Over the last few years, green building improvements have continued to help building owners cut costs. A number of corporations across the US have installed vegetative roof systems in their buildings and have benefited from the shading and cooling properties that reduce energy consumption.

Experts predict the green market will double over the next few years. As quoted by EarthShare, a 2011 study by MIT indicated that sustainability is now on the agendas of 70 percent of the country’s corporations. In response, insurance carriers now offer coverage options for these growing green initiatives.

Some coverages for green initiatives that have been or are being developed are:

  • Coverage to replace normal HVAC systems with green systems upon loss.
  • Coverage for the installation of alternative plumbing systems for reduced water consumption.
  • Coverage for the use of materials that emit fewer indoor air contaminants.
  • Coverage for the cost of recycling building materials after a loss.
  • Coverage for increased business interruption after a loss due to longer construction periods required for green rebuilds.

Discuss your green coverage – before you suffer a loss – with your advisor, who can suggest options.