Tokio Marine HCC International includes Green Upgrade Endorsement to property wordings

Endorsement to be included at no additional cost from Aug. 1

Tokio Marine HCC International includes Green Upgrade Endorsement to property wordings


By Kenneth Araullo

Tokio Marine HCC International’s (TMHCCI) Japanese Business Division has added a new Green Upgrade Endorsement, to be added as a standard endorsement at no additional cost to its combined commercial property policies starting Aug. 1 as clients renew.

This new endorsement provides additional cover following a total loss, enabling insureds to reinstate properties in a way that will minimise their building’s environmental impact through the latest technology. Cover under the endorsement 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 contents or tenants’ improvement sum insured.

The endorsement also covers a wide range of greening activities such as the upgrade of taps, showers, urinals, and grey water and rainwater systems. It will also cover upgrades to air conditioning and building cooling systems, ventilation systems, hot water and heating systems, lighting, and “green” roofs.

If the environmental upgrades also result in additional costs, the Green Upgrade Endorsement will cover these up to the lower of £1 million or 10% of the total loss. In addition, insureds can expect business interruption cover if the greening adds extra time to the reinstatement.

This offer covers businesses that have a Japanese parent. While most risks are in the UK, the coverage is available worldwide and on an international basis. It will also only apply to TMHCCI and not Tokio Marine Europe (TME).

“The Green Upgrade Endorsement will enable clients to improve the environmental performance of their commercial properties following a total loss,” said Simon Hewitt, TMHCCI Japanese business head of property and casualty. “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.”

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