Insurers Wary Of ‘Green’ Building Policies

As the green movement gains popularity amongst consumers, insurers have yet to embrace it. It’s a new concept that has yet to be tried and tested, especially when it comes to the construction sector.

In a new report, Marsh Inc. concludes insurance companies are “waiting on the sidelines” until they can determine what types of risks and exposures will arise from so-called green building projects.

“By and large, insurance companies are carefully monitoring the progress of green construction, the evolution of the contracts that define roles and allocate risks on these projects, and the reliability and durability of green materials and systems,” says Catha Pavloff, a senior vice president at Marsh’s Construction Practice and leader of the firm’s Green Building Risk Management team.

Marsh is advising businesses seeking insurance for green facilities to ensure they accurately assess a property’s values to avoid being under-insured.

Some insurers, Marsh acknowledges, are providing clients with risk management advice and are carefully watching the U.S. Green Building Council’s LEED Certification process. LEED is short for Leadership in Energy and Environmental Design, and has been endorsed by the American Institute of Architects.

A LEED Canada Initiative, spearheaded by the Canada Green Building Council, has adapted the American LEED Certification and is seeking to also adapt the U.S. LEED certification specifications for existing buildings.

Insurance professionals can obtain Marsh’s full report, entitled The Green Build Environment in the United States; The State of the Insurance Marketplace, for free.

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.