Environmental Protection

Insurance Co. Offers Green Coverage for Manufacturers

Manufacturers who already have or are interested in adopting environmentally sustainable practices can now purchase green insurance coverage from Fireman's Fund Insurance Co. of Novato, Calif.

The insurer's new green coverage is valuable for manufacturers that want to reduce water and energy use and lower their overall carbon footprint. The company is offering insurance premium reward incentives to manufacturers who employ environmentally friendly initiatives, practices, and products.

"Sustainable manufacturing practices are more profitable than traditional processes," said John Armstrong, manufacturing product director, Fireman's Fund. "In addition to more efficient energy and water usage, advanced technology improves production, reduces waste, and lowers costs -- which can translate into increases in net profits."

Sustainability in manufacturing goes beyond a green building to the machinery and equipment that produces the raw material that goes into the product, the process of manufacturing, and the impact of the finished products on the environment.

Manufacturers that enforce green standards benefit from higher employee productivity, reduced absenteeism, improved product safety, and lower energy bills. Sustainable businesses present fewer risks and are, therefore, better risks to insure.

The Manufacturers' Green Coverage Endorsement provides:

• Green Upgrade Coverage – after a loss, this coverage replaces real and business personal property (including machinery and equipment) with green-rated products and construction materials.

• In those instances where no green-rated equivalent exists, the coverage will replace damaged property with alternatives that use energy more efficiently, improve human health, or reduce toxic emissions.

• Certified Green Building Coverage – after a loss, the insurer will restore the building to its pre-loss LEED certification, or better yet, to one level higher than it was prior to the loss.

This new coverage will pay for the loss of business income, including the loss of public utility credits or reimbursements, resulting from the suspension of alternative power generating equipment, and extra expenses to purchase replacement power or water from a public utility while repairs are being made.

Coverage also can be extended for vegetated roof and heat island effect, the cost of hiring a LEED-accredited design consultant or LEED-accredited engineer, certification fees, recycling expenses, flush-out.

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