The notion of green insurance has been around for several years — specifically since 2006 when Fireman’s Fund began offering coverage for green commercial and residential buildings. The policies stated that in the event of loss, buildings would be reconstructed to their original LEED certification level. Many of these policies covered the cost of any damaged energy-saving or energy-generating equipment. Today, the concept has grown to cover regular, non-green buildings, allowing for rebuilding to LEED certification. If a loss is incurred, it’s a good way to become a building of the future using energy-efficient materials and systems.

Despite the fact that many insurers have added green insurance to their mix, it is questionable how many people are really taking advantage of these policies. A recent survey by American Agent & Broker magazine showed that about half of the 200 respondents thought green insurance products had been over-hyped. Just 22 percent were currently writing green policies, and 17 percent had seen an increase in client requests for these policies. Of those writing policies, the majority were in new construction property coverage, retrofitted property coverage, green-related professional liability (architects, engineers and contractors) and alternative energy company product risk. These were the areas that were also in highest demand from clients.

We can learn two things from this survey and the current marketplace. First, if you are pursuing green coverage, make sure your broker has green insurance experience. Communicate your complete business picture to your agent or broker so that he or she can recommend the best coverage and most advantageous discounts. For example, facts like low employee turn-over, safety programs, cell phone policies, drug programs and green initiatives all play a part in getting you the best coverage and premiums. Green initiatives can be major installations like solar roof panels or solar water heaters or as limited as energy-efficient light bulbs. Remember to discuss your company vehicles — if they are hybrids or other energy-saving models, premium discounts may apply.

Secondly, there are other areas respondents to the survey identified that can spur better coverage for those who are inclined toward green initiatives. They include green home and green auto coverage, solar heating and electric installations, and carbon capture coverage. Your broker should be asking questions about these areas, too. Insurance companies have created a variety of policies — you need to find the right combination for your business and personal needs.