Construction Insurance Carriers Address Green Building Projects

On March 16, 2010

By Scott Wolfe Jr

We’ve previously written about the intersection of standard insurance policies and green building projects. And at times, have discussed specific insurance products that may be available.

The problem is simply explained: Green building projects present unique liability exposures.

Will one party promise energy performance that does not deliver (read: negligent misrepresentation)? Will a newer and not fully tested green product constitute a defect in the building, and lead to consequential damages (read: negligence)? These two examples notwithstanding the obvious possible contractual breaches.

So how does the insurance industry address this unique exposure?

Susanne Sclafane, managing editor of National Underwriter’s Property and Casualty edition, published a really great article on this topic earlier this year: Insurers ‘Green Up’ Gray Coverage Areas.

The author discusses the coverage problems presented by green building projects, and analyses items that insurance companies are refusing to cover and new endorsements and coverages becoming available.

I highly recommend the article.

About the Author: Scott Wolfe Jr

Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.