Insurance options for green businesses

Businesses throughout the country are opting to become green. Environmentally friendly procedures and facilities may improve a company’s reputation while also lowering its energy and water expenditures. Government tax rebates and other incentives also encourage businesses to go green.

While environmentally friendly structures and equipment can offer several advantages to organizations, they often incur additional expenses and hazards. Insurers have responded by providing coverage choices to safeguard a company’s investment in turning green.

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Commercial property insurance with green endorsements

Traditional commercial property insurance covers the replacement or repair of damaged property using materials comparable to the original construction or based on the worth of the original equipment or structure. But what if you wish to be environmentally conscious when repairing or replacing insured property or equipment? Unless the insurance expressly acknowledges and pays the extra cost of green materials, most ordinary plans will not account for this circumstance. Several insurers, however, provide green endorsements (additional components) to commercial property insurance. These eco-friendly endorsements cover:

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Green Materials and Equipment—If you have a green endorsement on your commercial property insurance, it will cover the additional cost of environmentally certified materials and equipment, even if your initial property and equipment were not green certified. Some insurance will also allow you to upgrade your building to green certification when it is rebuilt.
Green Building & Related expenditures—Includes expenditures for green design and engineering, recycling, certification fees, and other expenses.

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Inquire with your insurance expert about any additional coverages that may be available. Green reconstruction, for example, can take longer than typical construction, so you may want to consider extending the duration of your business interruption coverage. If you add additional environmental elements to your building or activities, such as putting a vegetative roof, you may need to increase your commercial property insurance.

Green insurance is always evolving.

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Green building implies a lower carbon footprint and more energy efficiency, but it also means increased safety and resistance to windstorms and other weather-related catastrophes.

While green endorsements on commercial policies may be more expensive, having a green building in conjunction with improved building codes (which require impact-resistant windows, hurricane shutters, reinforced doors, and roof straps) may ultimately protect your property from being severely damaged or destroyed in a future weather-related disaster.

As a result of various green measures, your company may be able to save money on insurance. Some auto insurers, for example, have begun to provide personal auto insurance reductions for hybrid and electric vehicles. Discounts similar to this may be available for your commercial vehicle coverage.

Because green insurance alternatives are always evolving, you should consult with your insurance provider about green coverage and potential savings during your yearly insurance review.

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