CO 1201 –COMMERCIAL
OUTPUT PROGRAM GREEN COVERAGE ENDORSEMENT
(July 2025)
CO 1087–Green Coverage
Schedule
Alternate Certification Company
CO 1088–Schedule Of
Green Buildings Green Building Coverages
CO 1089–Schedule Of
Green Buildings Non-Green Building Coverages
This endorsement is
subject to all the terms and conditions outlined in CO 1000 – Commercial Output
Program – Property Coverage Part, unless specifically modified or stated
otherwise in this endorsement.
Some businesses have
always operated with environmental consciousness as a core principle. Recently,
other businesses have joined this movement due to their environmental concerns,
as well as the desire to achieve long-term savings on utility costs. The standard
property coverage part valuations do not account for businesses with
environmental concerns, so this endorsement allows the named insured to tailor
coverage to their specific needs.
The coverages
in this section apply only to buildings with a green certification. A check
must be placed next to either 'Green Building Coverages Not Provided' or 'Green
Buildings Coverage Provided.' Selecting 'Green Buildings Coverages Not
Provided' indicates that the building is not certified as green. Therefore,
refer to the Non-Green Building Coverages section.
If the Green Buildings
Coverage Provided is selected, CO 1088–Schedule of Green Buildings Green
Building Coverages must be attached to schedule the building, coverage, and
applicable limits.
The coverages in this
section apply to buildings not certified green, but for which certain green upgrades
are desired, should a loss occur. A selection must be made for either Coverages
Not Provided or Coverages Provided. Selecting Coverages Not Provided indicates
the building is certified as green. Therefore, refer to the Green Building
Coverages section.
If the Coverages Provided
is selected, CO 1089–Schedule of Green Buildings Non-Green Building Coverage
must be attached to schedule the building, coverage, and applicable limits.
The coverages in this
section are optional and available to both green and non-green building
coverages. The following coverages can be selected:
The term green
certification refers to the rating provided by either Green Globes or LEED
(Leadership in Energy and Environmental Design). If an alternate company is
used for the green certification, that company’s information must be listed in
this section.
If Green Building
Coverages is selected on the CO 1087, this schedule must also be included. Each
scheduled location or structure must be described, and one or more of the
following options must be selected, with limits specified.
Only two buildings can
be added to a schedule, so multiple schedules may need to be attached.
NOTE: There are no default limits. No coverage
is provided when a coverage selection appears without a limit.
If Non-Green Building
Coverages is selected on the CO 1087, this schedule must also be included. Each
scheduled location or structure must be described, and one or more of the
following options must be selected, with limits specified.
Only one building can
be listed on each schedule, so multiple
schedules may be needed.
NOTE: There are no default limits. No coverage
is provided when a coverage selection appears without a limit.
NOTE: All items in this endorsement are
additions to CO 1000–Commercial Output
Program–Property Coverage Part.
1. Appliances
This definition
provides a list of specific items. It does not include the words “including” or
“such as,” which means only the items listed are considered appliances. When
the term appliances is used in this endorsement, it refers to one or more of the
following:
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Dishwasher |
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Refrigerator |
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Freezer |
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Oven |
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Microwave oven |
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Toaster |
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Toaster oven |
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Coffee maker |
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Water cooler |
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Room air conditioner |
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Room air cleaner |
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Space heater |
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Water heater |
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Clothes washer |
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Clothes dryer |
2. Electronic Equipment
This definition provides a list of
specific items. It does not include the words “including” or “such as,” which
means only the items listed are considered electronic equipment. When the term
electronic equipment is used in this endorsement, it refers to one or more of
the following.
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Fax machine |
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Label machine |
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Audio equipment |
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Electronic stapler |
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Copier |
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Mailing machine |
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Other related telephone hardware |
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Telephone |
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Radio |
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VCR equipment |
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Television |
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External power adapters |
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Video conferencing equipment |
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DVD players and recorders |
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CD players and recorders |
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Hardware (this is a defined term in the CO 1000) |
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Telephone switchgear (this includes PBX systems) |
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NOTE: This definition
contains some general references that may introduce a degree of ambiguity.
3. Energy Star
This rating standard
from the U.S. Environmental Protection Agency and the U.S. Department of Energy
aims to help consumers save money and protect the environment by promoting
energy-efficient products and practices.
4. Furniture and furnishings
A listing of specific items is provided
in this definition, and the wording suggests that it is meant to be exclusive.
Therefore, when the term furniture and furnishings is used in this endorsement,
it means one or more of the following:
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Desks |
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Lamps |
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Stools |
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Chairs |
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Benches |
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Tables |
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Wall clocks |
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Filing cabinets |
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Bookcases |
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Artificial plants |
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Sofas and Couches |
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5. Green
This broad definition
encompasses products, materials, methods, and processes.
A green process includes improving air quality inside a building and, in other
ways, protects the health of its occupants while also
enhancing employee productivity. Additionally, the products, materials,
methods, and processes utilize recycled materials, consume less energy, emit fewer
pollutants, and generate less waste.
NOTE: The words
‘less’ and ‘fewer’ are used, but their definitions do not specify what they are
compared to.
6. Green certification
This is a certification
granted to a building by Leadership in Energy and
Environmental Design (LEED), Green Globe, or an alternative certification
company. If the certification is from an
alternative certification company, the company's name must be entered on CO
1087 – Green Coverage Schedule.
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LEED
is a voluntary green certification program created by the U.S. Green Building
Council.
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Green
Globe is an environmental assessment, education, and rating system developed by
the Green Building Initiative.
7. HVAC equipment
This definition encompasses all heating,
cooling, and ventilation equipment. The list below specifies items included,
though the term is not restricted to just these items:
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Heat pumps |
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Boilers |
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Central air conditioning |
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Window air conditioning units |
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Ceiling fans |
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Dehumidifiers |
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Exhaust fans |
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Furnaces |
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Thermostats |
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Ventilating fans |
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8. Interior finish materials
This definition lists specific items
without using the words “including” or “such as.” This indicates that only the
listed items are considered interior finish materials. When the term interior
finish material is used, it means one or more of the following:
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Carpet |
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Floor coverings |
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Tile |
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Wall coverings |
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Interior paints |
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Architectural coatings |
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Primer |
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Undercoating |
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Sealants |
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Adhesives used to affix materials |
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Permanently installed composite wood fixtures (counters,
cabinets, and partitions) |
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9. Interior lighting systems
All lighting within a
building is included in this definition. Light bulbs, fluorescent and HID
lighting fixtures, and ballasts are examples of covered items, but other
lighting items are included as long as they are inside
the building or structure.
10. Interior plumbing systems
This definition
includes all plumbing within a building or structure. It covers items such as
toilets, urinals, hot water heaters, faucets, and showerheads, as well as any
other plumbing components located inside the building.
11. Light commercial HVAC equipment
These HVAC systems are
utilized by small commercial operations but resemble residential units more
closely. Examples include small package units, heat pumps, air conditioners,
and split systems.
12. Renewable energy generating equipment
This definition
includes equipment that harnesses renewable resources to produce energy.
Examples like solar, wind, geothermal, low-impact hydro, and bio-mass/bio-gas
systems are listed, but this list is not exhaustive.
13. Seating
These are chairs used in
conjunction with the system furniture defined below. These can be task, desk or guest chairs.
14. System furniture
These components define
workspaces. A workstation, along with its components, panels, and drawers, is
regarded as system furniture. Freestanding items, including interconnected
components, are also classified as system furniture.
15. Water conservation system
Any system at or within
500 feet of a covered building built to collect rainwater or groundwater for
the following:
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Non-potable
water supply for the building
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Water
treatment facility on site
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Outdoor
irrigation holding facility
These systems are designed
to circulate gray, ground, or rainwater, but do not include any plumbing system
solely designed for landscape irrigation purposes unless integrated into a
reclamation or conservation water system.
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Example: Great Oaks,
LLC is an environmentally aware cabinet manufacturer. The manufacturing takes
place in their green certified
building. They have two retail outlets located in specialty malls. The
outlets need to have extensive green upgrades. We’ll use Great Oaks in
examples throughout this analysis. |
The following additional coverages are
available only for buildings with a green certification. These coverages pay
for costs incurred to bring the building back into compliance with its
certification. The covered buildings referenced in this coverage are only those
listed on the CO 1088–Schedule of Green Buildings Green Building Coverages.
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Example: Great Oaks,
LLC schedules its manufacturing building under Green Building Coverage and
chooses all available coverages. When an explosion
damages 60% of the building, Great Oaks, LLC seeks
an equitable settlement. |
1. Indoor Air Quality
Coverage is applicable
only if selected on CO 1088 – Schedule of Green Buildings – Green Building
Coverages. If a covered peril causes direct loss or damage to a covered
building, the costs to restore the building to its pre-loss condition,
including the restoration of its indoor air quality, will be covered. These
costs will be paid to ensure the building meets the standards outlined in the
Indoor Air Quality Management Plan, as required for the building’s green
certification.
The costs to restore
the air quality include the following:
The costs paid will not exceed the limit
for this coverage at the specific location as outlined in CO 1088 – Schedule of
Green Buildings – Green Building Coverages.
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Example:
An air quality test must be conducted
following the repairs to determine if the air meets the green certification
levels. The test costs $5,000 and indicates that the air must be flushed to
meet the green certification requirement. Great Oaks, LLC spends $25,000
to flush out the air. Part of the problem was that the building’s filter was overburdened
by the loss, and although it is not damaged, it must be replaced to maintain
the air quality at the approved level. The new filter costs $3,000. The limit
of insurance scheduled for this coverage is $50,000, so all costs are
covered. |
2. Recycling Debris
Coverage applies only
if it is selected on CO 1088–Schedule of Green Buildings – Green Building
Coverages. If direct loss or damage caused by a covered
peril occurs at a covered building or structure, the expenses for transporting
debris to a recycling facility, rather than a landfill, are covered. This
applies only if the items are recyclable.
This
coverage provides additional expenses to cover the difference in cost between
recycling and disposing of waste in a landfill. The standard debris removal
coverage will cover the debris removal expense for items not recyclable. The
costs paid will not exceed the limit for this coverage at the specific location
as outlined in CO
1088 – Schedule of Green Buildings – Green Building Coverages.
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Example: The debris removal expense is $25,000, but Great Oaks, LLC insists on recycling as much of the debris as
possible. This diversion costs an additional $15,000. However, because the
company has $25,000 in recycling debris coverage, the insurance company pays
a total of $40,000 to dispose of the debris. |
3. Recertification
Coverage applies only
if it is selected on CO 1088–Schedule of Green Buildings – Green Building
Coverages. If direct loss or damage due to a covered peril occurs at a covered
building, the costs incurred to recertify the damaged building or structure are
covered, but only to the level prior to the date of loss. The costs include all
required fees along with the costs of hired certified consultants and
engineers.
The costs paid will not exceed the limit
for this coverage at the specific location as outlined in CO 1088 – Schedule of
Green Buildings – Green Building Coverages.
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Example: The building is now ready for
occupancy. Great Oaks, LLC aims to keep its green certification and must
submit applications along with hiring experts to inspect and report on the
building's condition. The cost for this is $3,000, which is covered since the
total scheduled limit is $5,000. |
4. Electricity or Water Replacement
Coverage applies only
if it is selected on CO 1088–Schedule of Green Buildings – Green Building
Coverages. Loss or damage to the named insured’s equipment used to generate its
own energy or the system it uses to conserve water will force the named insured
to pay its
public utilities for electricity and/or water. Those payments are covered if
the equipment or system damage is due to a covered peril.
Payments are for only
the amount of electricity and/or water that would have been available during
the specified time period and are available only until
the equipment is returned to the manufacturer’s specifications or the end of
the policy period, whichever is sooner.
The payments will not exceed the limit
for this coverage at the specific location as outlined in CO 1088 – Schedule of
Green Buildings – Green Building Coverages.
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Example: Great Oaks, LLC generates 80%
of its own energy by using cabinet manufacturing
waste and wind power. It features a gray water recycling system that reduces
its water consumption, using only 25% of the normal
demand. An explosion occurs in the energy recycling area. Although Great Oaks, LLC
can continue operations, its utility costs will increase by $7,000 a month
until the necessary replacement is made. The coverage limit available is $60,000;
therefore, if the energy recycling equipment is replaced within eight months,
there should be sufficient coverage. However, if the policy expiration occurs
before the equipment is replaced, coverage ends, even if the limit has not
yet been exhausted. |
5. Vegetative Roofs
Coverage applies only
if it is selected on CO 1088–Schedule of Green Buildings – Green Building
Coverages. The expenses for repairing, replanting, or rebuilding a vegetative
roof on a covered building are covered if the damage results from a covered
peril. However, only costs necessary to restore the roof to the standards
required for the building’s green certification are covered.
Damage to vegetative
roofs from the following perils is not covered under this green coverage:
The costs paid will not
exceed the limit for this coverage at the specific location as outlined in CO
1088 – Schedule of Green Buildings – Green Building Coverages.
NOTE: The Trees, Shrubs, and
Plants supplemental coverage section limit in the property coverage part is not
combinable with this coverage.
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Example: The explosion caused part of the roof
to collapse into the building. The cost to repair the roof is
covered under the CO 1000, but the $3,000
cost to replant the vegetation on the roof is covered only under this
coverage. The scheduled Vegetative Roofs limit is $10,000, so the damage to
the roof is fully covered. |
The following
additional coverages are available only for buildings without
a green certification. Coverage pays the costs incurred to upgrade damaged
property with green products. Covered buildings referenced in this form are only those buildings listed on
the CO 1089–Schedule of Green Buildings – Non-Green Building Coverages.
1. Personal Property Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If the cost of repairing or replacing damaged covered personal
property with green products is more than the cost to replace or repair it with
a similar type and purpose, this coverage will pay for those additional costs.
The loss or damage must be due to a covered peril, and the green replacement
product must either meet green certification standards or have an Energy Star
designation.
This coverage applies
only if a green product equivalent is available and for property located inside
a covered building or structure. The only exception to personal property being
inside the building is mobile equipment, which can be inside or outside the
building.
Only the following six
types of personal property are covered under this upgrade coverage:
NOTE: All of these
items are specifically described in the definitions section of this coverage
endorsement or the property coverage part. It is essential to review these
definitions to understand precisely what personal property is covered.
Stock that is held for sale
is not covered. The definition of stock includes the raw material that will be
used to make the stock and any stock that is in process.
The costs paid will not exceed the limit for this coverage at the specific
location as outlined in CO 1089 – Schedule of Green Buildings – Non-Green
Building Coverages.
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Example: Great Oaks,
LLC schedules its two retail outlets under Non-Green Building Coverage and selects
all coverages. A tornado passes through town,
damaging one location. The non-stock personal property in the outlet was
valued at $10,000. The additional cost to replace them with green equivalents
is $2,000. The limit on the schedule is $5,000, so coverage in the CO 1000 pays for the $10,000
for the loss, and this endorsement pays for the $2,000 upgrade. |
2. Interior Finish Materials Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If repairing or replacing damaged covered interior finish material
with green products is more than the cost to replace or repair it with a similar type and purpose, this coverage will pay for
those additional costs. The loss or damage must be due to a covered peril, and the green replacement product must meet green
certification standards.
Coverage applies not
only to owned buildings but also to the named insured’s use
interest in improvements and betterments as a tenant. Additionally, this
coverage applies only if there is a green product equivalent and for property
inside a covered building or structure.
The costs paid will not exceed the limit
for this coverage at the specific location as outlined in CO 1089 – Schedule of
Green Buildings – Non-Green Building Coverages.
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Example: Great Oaks, LLC is
upgrading its damaged outlet with environmentally friendly improvements. The
company’s policy covers up to $10,000 for interior finish material upgrades.
However, since the upgrades will cost an extra $14,000, only $10,000 of this
additional expense is covered by the policy. |
3. Interior Plumbing Systems Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If repairing or replacing damaged covered interior plumbing systems
with green products is more than the cost to replace or repair with a similar
type and purpose, this coverage will pay for those additional costs. The loss
or damage must be due to a covered peril and the green replacement product must
be up to green certification standards.
This coverage applies only if a green
product equivalent is available and covers only the plumbing located inside a
covered building or structure. The costs paid will not exceed the limit for
this coverage at the specific location as outlined in CO 1089 – Schedule of
Green Buildings – Non-Green Building Coverages.
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Example:
Great
Oaks, LLC is currently upgrading the plumbing
fixtures in its store. Since these fixtures cannot be removed, they are considered
improvements and betterments. Unfortunately, the insurance coverage purchased
does not include protection for improvements and betterments. As a result,
Great Oaks, LLC will not receive any reimbursement
for the upgrades to the interior plumbing system at this location. Additionally,
it's important to note that this coverage will only apply in the event of a
covered loss; in this case, there's no covered loss. |
4. Interior Lighting Systems Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If repairing or replacing damaged covered interior lighting systems
with green products is more than the cost to replace or repair with a similar type and purpose, this coverage will pay for
those additional costs. The loss or damage must be due to a covered peril, and
the green replacement product must either be up to green certification
standards or have an Energy Star designation.
This coverage applies
only if a green product equivalent is available and while the system is located
inside a covered building or structure. The costs paid will not exceed the
limit for this coverage at the specific location as outlined in CO 1089 – Schedule
of Green Buildings – Non-Green Building Coverages.
5. HVAC Equipment Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If repairing or replacing damaged covered HVAC equipment with green
products incurs costs that exceed the cost of replacement or repair with a
similar type and purpose, this coverage will pay for those additional costs.
The loss or damage must
be due to a covered peril, and the green replacement
product must meet green certification standards. If the HVAC system is
considered light commercial equipment, it must either meet the green
certification standard or have an Energy Star designation.
This coverage applies
only if a green product equivalent is available and while the equipment is
located inside a covered building or structure. The costs paid will not exceed
the limit for this coverage at the specific location as outlined in CO 1089 – Schedule
of Green Buildings – Non-Green Building Coverages.
6. Roof Upgrade
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If repairing or replacing all or part of a damaged covered roof with
green products is more than the cost to replace or repair with a similar type
and purpose, this coverage will pay for those additional costs. This includes
the cost of repairing or replacing insulation.
The loss or damage must
be due to a covered peril, and the green replacement
product must meet green certification standards.
This coverage applies
only if there is a green product equivalent and the roof is on a covered building or structure. The costs
paid will not exceed the limit for this coverage at the specific location as
outlined in CO 1089 – Schedule of Green Buildings – Non-Green Building
Coverages.
7. Recycling Debris
Coverage applies only
if it is selected on CO 1089–Schedule of Green Buildings – Non-Green Building
Coverages. If direct loss or damage caused by a covered peril occurs at a
covered building or structure, the expenses for transporting debris to a
recycling facility, rather than a landfill, are covered. This applies only if
the items are recyclable.
This coverage provides additional
expenses to cover the difference in cost between recycling and disposing of
waste in a landfill. The standard debris removal coverage will cover the debris
removal expense for items not recyclable. The costs paid will not exceed the
limit for this coverage at the specific location as outlined in CO
1089–Schedule of Green Buildings Non-Green Building Coverages.
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Example: The debris removal expense that Great Oaks, LLC is responsible for is covered under the CO 1000. However, they have added Recycling Debris
coverage to the policy with a limit of $15,000. They incur additional costs
to recycle much of the debris at a recycling facility. The extra cost to
transport the debris to the recycling facility is covered up to the $15,000
scheduled limit. |
These coverages are
available only if CO 1001–Commercial Output Program Income Coverage Part is
attached.
The following
additional coverages pay for the time added to the period of
restoration to upgrade damaged property with green products. Covered
buildings referenced in this coverage are
only those buildings listed on the CO 1088 or CO 1089–Schedules of Green
Buildings Coverages.
1. Green Building Alternatives – Increased Period of Restoration
Coverage applies only
if it is selected on CO 1087–Green Building Coverage Schedule. If direct loss
or damage caused by a covered peril occurs at a covered building or structure, coverage
applies. The loss or damage must be due to a covered peril and must force the
named insured’s business to shut down completely or partially.
The CO 1001 coverage
provides for the lost income during the period of restoration. This coverage
expands the defined restoration period to include any additional time needed to
repair and replace the property with green products required to comply with its
green certification, as well as to employ green construction processes that
were part of the building’s design prior to the loss.
Coverage is limited to 30 additional
days beyond the standard period of restoration unless a different number of
days is entered on the CO 1087.
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Example:
Great Oaks, LLC has chosen
to extend its coverage to increase the restoration period to 90 days. This
coverage is applicable only to the manufacturing location, as it is the only
site with a green certification. Since this extension aims only to help maintain
the green certification, the insurance limit for loss of business income
remains in effect, but it does not increase the overall business income
limit. Great Oaks sustained a loss exceeding
the $500,000 business income limit shown on the CO 1050 – Schedule of
Coverage – Commercial Output Program. Since the $500,000 business income loss
limit is exhausted during the rebuilding process, no additional coverage is
available with the 90-day extension. Great Oaks, LLC should have considered
increasing its loss of income limit when it purchased the Green Building
Alternatives – Increased Restoration Period. |
2. Renewable Energy Generating Equipment
Coverage applies only
if it is selected on CO 1087–Green Building Coverage Schedule. Some businesses
with renewable energy generating equipment develop so much energy that they can
sell the surplus to their local power utility. If a loss occurs to the equipment,
they can no longer sell the surplus and, therefore, sustain a loss of income.
To qualify as a covered
loss, there must be a direct loss or damage to the insured’s renewable energy
generating equipment. This loss must result from a covered peril and cause a
loss of compensation from the power utility. Additionally, the utility must
have been providing the business with credits, rebates, or reimbursements for
surplus power before the loss.
Coverage applies only until the
equipment is repaired or replaced. The loss of income paid in a single
occurrence will not exceed the limit for this coverage on CO 1087.
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Example: Great Oaks, LLC has
received up to $2,000 in utility rebates in certain months due to its energy
replacement equipment. An income loss is covered up to the selected $15,000
limit. |