WIN Magazine - Fall 2015 - (Page 21)
it's not EAsy
impAct of green
By JosepH HarriNgtoN, cpcu
REFERS to the fast-growing
trend among property owners, designers, and builders to
create structures with specific
features designed to make
them more energy efficient with a beneficial impact on
the natural environment.
Developers of green projects generally seek to have
them certified as "green" by organizations that use point
systems to establish levels of green certification. Two of
the best known of these certifications are the:
* Leadership in Energy and Environmental Design
certifications granted by the U.S. Green Building
Certification Institute, which certifies buildings as
meeting a "silver," "gold," or "platinum" standard.
* Green Globes rating system used by the Green Building
Initiative, which awards structures one, two, three, or
four green globes.
Points under these rating systems are awarded for
major structural features and for other amenities, such
as the presence of bicycle racks. A building's rating
depends on the total number of points earned across
several categories. States and municipalities are contributing to the green construction trend by incorporating
green features into building codes or offering tax incentives for property owners to earn a green certification.
The role the green rating systems play in the valuation
of green buildings is central to the liability insurance
issues arising from green construction.
Observers agree that third party certification for green
buildings will contribute to vastly-expanded professional
liability for architects and contractors. According to
Chicago attorney and licensed architect Gary Cole,
"unfulfilled expectations" will be the leading cause of
green-related litigation between project owners on the one
hand, and those who design and build green structures
on the other. "'Unfulfilled expectations' is a simplified
way of referring to some manifestation as a breach of
contract," Cole writes in his Green Goblin Web series.
"Breaches of contract can arise by violations of expressed
terms or implied terms."
According to Cole and others, a casual statement or
ambiguous contract provision that expresses a commitment
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Table of Contents for the Digital Edition of WIN Magazine - Fall 2015
Risk Exposures of Global Food Shortages & Security
Predictive Analytics and Surplus Lines: Freedom of Rate but Not Free of Unfair Discrimination
It’s Not Easy Being Green: Assessing the Impact of Green Construction on CGL Exposures
The Case for Trade Disruption Insurance in the E&S Market
Managing Human Resources in an Increasingly Complex Insurance Industry
Developing an Effective Mentoring Program
Workflow Efficiency: What’s in it for You?
Prominent Defenses Undercut in Data Breach Lawsuits and Class Actions
Cyber Crime and Data Breaches
Index of Advertisers
WIN Magazine - Fall 2015