Green building owners and/or green building property managers are often are unaware that insurance premium discounts of between 25%-40% can be applied to their green building insurance policy.  That is a tremendous savings that insurance agents and brokers are hesitant to disclose as it reduces commission. 

Insurance Companies such as Fireman's Fund Insurance Company automatically apply a 5% discount to green building insurance policies.  This discount recognizes the reduction in risk due to the features of a green building.  In addition, insurance company underwriters have authority to lower premium by applying individual risk premium modification discounts (IRPM).  Newer contstruction, effective property maintenance, management experience and quality of building materials are examples of IRPM discount categories.  Given such criteria, virtually all green buildings are eligible for IRPM discounts.

At Green Business Insurance, Inc. we work to make all transactions transparent between policyholder and insurance company.  Our clients receive all premium discounts that have been earned to ensure the premium paid is a reflection of the risk taken by the insurance company.

Going green is big business.  It is estimated that consumers will spend $500 billion on green products and services over the next year.  While consumers should continue to try to reduce their carbon footprint, evaluate the risks associated with being green.

• While quality green construction products increase energy efficiency they can present an increase fire hazard or can be combustible.  Green paint, insulating materials and natural flooring can increase exposure.  Reducing the severity of the exposure can be accomplished by installing an automatic sprinkler system.
• When installing a vegetative roof understand the dimensions and slope of the existing roof, maintenance requirements involved and the impact the vegetative roof may have on other utilities in the building.  Consider potential allergic reactions of employees as vegetative roofing may impact air quality.
• When hiring a contractor, make sure each has experience installing green building materials and hire qualified employees and subcontractors to do the work.  Request that each contractor provide certification that proves qualification. 
• Inquire with manufacturers of green office furniture to make sure the product does not emit gases that may impact air quality.

Constructing a green building or renovating an existing building to increase efficiency is a smart decision for commercial building owners.  Before construction begins, however, construcion materials should be researched. 

New green building materials are constantly being introduced to the market.  Often the products are so new and "high-tech" they are not UL listed or Factory Mutual approved.  In addition, green building materials may not be well tested.  Conditions surrounding a project will determine if the materials should be used considering issues such as temperature, moisture and wind patterns.  Keep in mind green building materials may not be available in certain quantities so delivery expectations should also be considered.

While under construction, quality control of your green building project should be constantly evaluated.  Contractors can somewhat unfamiliar with new, green building materials.  Before, application, communicate to each contractor the recommended installation procedures.

Pat Thompson, CPCU
Green Business Insurance, Inc.