Fireman's Fund Expands Green Offerings

Fireman’s Fund Insurance Company is now expanding its environmentally-friendly coverage to watercraft with a new green Hull and Machinery product.

This is reportedly the first-ever green insurance available in the marine industry, designed to ensure vessel owners meet new federal environmental air standards with their tugs, ferries, commercial fishing vessels, and offshore service vessels.

New marine emissions regulations established by the Environmental Protection Agency 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.

As previously announced, 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 will reportedly lead to the creation of the world's largest marine insurance provider.