The American Association of Insurance Services (AAIS), Wheaton, Ill., introduced a new optional Green Coverage Endorsement and accompanying schedules under its Commercial Output Program (COP).
AAIS is a national insurance advisory organization that develops policy forms and rating information used by more than 600 property/casualty carriers throughout the United States.
As an output program, the COP incorporates broad commercial property and inland marine coverages into a base property form, and a few additional coverage parts (crime, equipment breakdown and income). The program also provides a flexible procedure for rating a risk as a single entity rather than as the sum of disparate exposures.
The COP's new "green" endorsement extends insurance under the COP's property and income coverage parts to three categories of coverage:
• Green Building Coverages: cover certain costs incurred to comply with "green" construction certification standards developed by organizations promoting environmentally friendly construction. These include costs incurred to restore indoor air quality, recycle debris, restore vegetative roofs, recertify a structure as green, and replace water or electricity that is lost when onsite renewable energy or water conservation equipment is damaged.
• Non-Green Building Coverages: cover the costs to upgrade conventional but damaged personal property, finishes, plumbing systems, lighting systems, HVAC equipment and roofs with property that meets green standards. These coverages apply only for buildings and structures that do not have a green certification.
• Green Income Coverages: cover the income cost for the extension of a restoration period due to materials or procedures required to achieve a green certification. This section also covers loss of income incurred when there is damage to renewable energy equipment that supplies power to a public utility.
The proposed effective date of the filings is June 1, 2010.
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