JERSEY CITY, N.J., September 14, 2009 — ISO announced today that it has filed the industry’s first standard coverage option for commercial property owners interested in rebuilding damaged property with green alternatives.
“ISO participating insurers will be able to offer their clients an innovative coverage solution that taps into the current desire of many individuals and businesses to lessen their impact on the environment,” said Kevin B. Thompson, senior vice president of insurance services at ISO. “Today, commercial buildings are among the largest energy consumers and waste generators. Significant attention has been focused on how to reduce the impact of commercial buildings on the environment, and this new coverage is designed to allow insurers to help their clients address that issue.”
There are three major components of the new coverage. First, green upgrade coverage will augment existing replacement-cost coverage by providing an additional limit of insurance to address loss settlement of damaged property using more energy-efficient, environmentally preferable materials, products, or methods in design, construction, manufacture, or operation, as recognized by a green standard-setter, such as Leadership in Energy and Environmental Design (LEED) or ENERGY STAR.
The second component is related expense coverage, which provides an additional limit of insurance to be applied to expenses related to green upgrades. This includes waste reduction and recycling costs, such as the reuse or salvage of building materials or contents and related extraction and transportation expenses. Other expenses include professional fees for the design and engineering of green upgrades as well as certification and equipment testing fees. Related expense coverage also provides building air-out and air testing expenses.
The third new coverage option offers a business interruption option for those insureds with an underlying time-element policy that extends the period of restoration. This component recognizes that reconstruction using green standards may take longer than is customary with ordinary construction methods and materials.“The ISO green building upgrade will allow insurers to tap into the growing trend of environmentally friendly rebuilding following a loss and is designed to complement the existing portfolio of coverage options available through ISO’s commercial property programs,” added Thompson.
A leading source of information about risk, ISO provides data, analytics, and decision-support services to professionals in many fields, including insurance, finance, real estate, health services, government, human resources, and risk management. Using advanced technologies to collect, analyze, develop, and deliver information, ISO helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, ISO employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, ISO helps customers protect people, property, and financial assets. For more information, visit www.verisk.com/iso.