XL Insurance (“XLI”), the global insurance operations of XL Capital Ltd (NYSE:XL) , launched a new green building product to encourage customers who experience a property loss to rebuild using resource efficient, environmentally friendly materials.
XLI’s Sustainable Property Endorsement is designed to be attached to U.S. property insurance policies and is also adaptable to other tailored or manuscript forms under certain conditions. The Endorsement is based on the Leadership in Energy and Environmental Design (LEED(R)) Green Building Rating System developed by the U.S. Green Building Council. It allows XLI’s customers to collect an amount greater than the value of the damaged property provided the damaged property is replaced with an environmentally acceptable substitute and, therefore, encouraging customers to upgrade their property at the time of loss.
In addition, the Endorsement is not just limited to property such as furniture and appliances, but also applies to all insured property unless specifically excluded in the Endorsement. Coverage is extended to include undamaged property under the building laws provision as well as recycling and recertification expenses after both full and partial losses. Some of the benefits of designing with sustainability include reduced energy costs, increased employee productivity and reduced greenhouse gas emissions, resulting in XLI’s customers continuing to benefit long after the facility is rebuilt.
John Gallagher, XLI’s global property chief underwriting officer, commented: “Our Sustainable Property Endorsement provides an incentive for our customers to make their operations more water and energy efficient while at the same time helping the environment by providing an attractive solution to a global issue. Green building is more than a growing trend today — it’s smart business. Our customers want to create superior workplaces while minimizing the environmental impact.”
Nigel Mortimer, XLI’s Director of Product Development, said: “We want to increase the opportunities for risk managers to purchase products that provide tangible value to their organization and the environment at the same time. Social consensus is changing rapidly and good environmental stewardship increasingly resonates with our customers, their customers, neighbors, employees and shareholders. … Products like this one will help reduce our customers’ energy costs and their energy dependency while also reducing unnecessary environmental impacts”.
Source: XL Insurance, www.xlcapital.com
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