The Japanese business division of Tokio Marine HCC International has launched a new green upgrade endorsement that will be added as a standard endorsement, at no additional cost, to its combined commercial property policies from 1 August 2023 as they renew.

The endorsement provides additional cover following a total loss. It enables insureds to reinstate properties in a way that will minimise their building’s environmental impact, by using the latest available technology.

Cover is triggered by total loss insured events which is 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.

Simon Hewitt, head of property & casualty for Japanese Business at TMHCCI, said: “The green upgrade endorsement will enable clients to improve the environmental performance of their commercial properties following a total loss. 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.”

The endorsement covers a wide range of greening activities such as upgrading taps, showers, urinal toilets, and grey water and rainwater systems. It also covers upgrades to air conditioning and building cooling systems, ventilation systems, hot water and heating systems, lighting, and ‘green’ roofs.

Where the environmental upgrades result in additional costs, the endorsement will cover these up to the lower of £1m or 10% of the total loss. It will also provide business interruption cover if the greening adds extra time to the reinstatement. This cover will be limited to the business interruption indemnity period in the policy schedule.

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. The endorsement only applies to HCC International and not Tokio Marine Europe.

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