Green Coverage

Along with other industries, insurance companies are increasingly examining and seizing the opportunity that green-related issues are providing.

Environmental Protection recently reported that Fireman's Fund Insurance Co. is offering insurance premium reward incentives to manufacturers that employ environmentally friendly initiatives, practices, and products ( Fireman's Fund also was an exhibitor and sponsor at last month's Greenbuild Conference, where it launched a Web site on climate change and sustainability issues (

As insurance companies are seeing the advantages of sustainability, one insurer is offering coverage that recognizes there is a risk to being green. AIG Risk Management® (AIGRM) announced in November the launch of its AIGRMGreenSM product line, consisting of two coverages:

• AIGRMGreen Reputation Coverage provides up to $50,000 in coverage, per occurrence, for crisis management consultant costs resulting from management of a reputational crisis when a green building experiences adverse publicity.

• AIGRMGreen Indoor Environment Coverage protects against claims of bodily injury caused by any substance or odor produced by or originated from a green building's specialized equipment used to improve air quality or water quality control.

As the insurance industry delves more into the market, just how much influence will it have on the entire green building industry? As you think on this, here's a couple of reports on the insurance industry:

• "The Green Built Environment in the United States: The State of the Insurance Marketplace" (

•"From Risk to Opportunity 2007: Insurer Responses to Climate Change" (

Posted by Angela Nelson on Dec 05, 2008