The Japanese Business Division of Tokio Marine HCC International (TMHCCI) has unveiled a new Green Upgrade Endorsement that will be added as a standard endorsement, at no additional cost, to the firm’s combined commercial property policies from August 1, 2023 as they renew.
According to the announcement, the endorsement will provide additional cover following a total loss.
The endorsement also enables insureds to reinstate properties in a way that will minimise their building’s environmental impact, by using the latest available technology.
At the same time, cover is triggered by total loss insured events, defined as those where the damage is 80% or more of the building sum insured, or 80% more of the Contents or Tenants Improvement sum insured.
The endorsement also covers a variety of greening activities, which includes upgrading taps, showers, urinal toilets, and grey water and rainwater systems.
Additionally, the endorsement will also cover upgrades to air conditioning and building cooling systems, ventilation systems, hot water and heating systems, lighting, as well as ‘green’ roofs.
However, where the environmental upgrades result in additional costs, the endorsement will cover these up to the lower of £1 million or 10% of the total loss.
Another key factor of the endorsement that is worth highlighting is that it will also provide business interruption cover if the greening adds extra time to the reinstatement.
But, this cover will be limited to the business interruption indemnity period in the policy schedule.
“The Green Upgrade Endorsement will enable clients to improve the environmental performance of their commercial properties following a total loss,” said Simon Hewitt, Head of Property & Casualty – Japanese Business at TMHCCI.
He continued: “This technique is known as ‘greening’ and, under the new endorsement, it will not be classed as betterment. Offering this broader scope of cover is part of our commitment to support our clients and the wider world in which we live.”
It is also important to note that the Japanese Business Division offers cover to businesses that have a Japanese parent. Most risks are located in the UK, but cover is available on an international basis.
Therefore, this endorsement only applies to HCC International Insurance Company plc (HCCII), not Tokio Marine Europe (TME).
