October 8, 2008
Fireman's Fund offers green Hull & Machinery insurance
Fireman's Fund Insurance Company is offering a new green Hull and Machinery product to ensure vessel owners meet new federal environmental air standards with their tugs, ferries, commercial fishing vessels, and offshore service vessels.
New EPA emissions regulations are creating a potential coverage gap for vessel owners facing major engine repairs. These new federal mandates require upgrades to strict environmental standards whenever older engines require replacement or substantial rebuilding. Most existing hull and marine equipment policies only cover restoration of damaged equipment to its previous operational condition--without betterment.
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.
"This product is unique to the insurance industry," said Roger Howe, product executive for Hull and Marine Liability at Fireman's Fund Insurance Company. "Our customers will be protected with an unparalleled coverage which is not only good for the environment but makes good business sense as well."
Fireman's Fund, which is a member of the Allianz Group, will move its marine business lines to Allianz Global Corporate & Specialty beginning in 2009. This transition, it says, will lead to the creation of the world's largest marine insurance provider.