The New “Green” Coverage
Monday, September 29th, 2008
Good news for you sailors out there! Marketwatch.com recently reported that Fireman’s Fund Insurance Company is now expanding its environmentally-friendly coverage to watercraft with a new green Hull and Machinery product. This is the first-ever green insurance available in the marine industry, designed to ensure vessel owners meet new federal environmental air standards with their tugs, ferries, commercial fishing vessels, and offshore service vessels. This new insurance came about because new marine emissions regulations established by the Environmental Protection Agency are creating a potential coverage gap for vessel owners facing major engine repairs. The new federal mandates require upgrades to strict environmental standards whenever older engines require replacement or substantial rebuilding. Unlike most existing hull and marine equipment policies that only cover restoration of damaged equipment to its previous operational condition, the green Hull and Machinery coverage will repair or replace the damaged engine with the most efficient model available to meet federal air quality requirements. In the event of a total loss to one engine, this coverage will also cover a portion of upgrades to the undamaged engine to match efficiency performance.