Insurers offer green building protection

AIG’s (American International Group Inc) Risk Management branch announced two special types of insurance.

The first, AIGRMGreen Reputation Coverage, insures developers and managers against the costs of countering bad publicity on a green building project, including employing crisis management specialists.

The other package, AIGRMGreen Indoor Environment Coverage, will insure companies against claims of illness or injury caused by specialist environmental equipment.

AIG said that although the equipment is critical for green buildings, it is not covered in standard insurance policies.

“Around the US and around the world, there has been a growing realisation of the value of environmentally friendly and sustainable buildings,” said Joe Fobert, senior vice president of AIG Risk Management.

“We recognise that green buildings are a social responsibility and a sound business practice.

“However, as we enter new territory regarding green buildings, there may be exposures to risks that were never anticipated.”

Both packages are available for companies who own or manage buildings that comply with green building standards such as the US Green Building Council’s LEED (Leadership in Energy and Environmental Design) scheme.

Just three months ago, AIG, the largest insurance company in the US, was rescued from bankruptcy when the US Federal Reserve drew up an $85bn rescue package.

The Federal Reserve and the US Treasury said the deal, which followed the collapse of investment bank Lehman Brothers, would protect the interests of US taxpayers.

Kate Martin