What’s New: In Brief (September 14, 2009)

Arthur J. Gallagher & Co. is donating US$100,000 to fund the creation of the Robert E. Gallagher and John P. Gallagher Scholarship.
The initiative will provide funding for students of risk management disciplines.  
“We are grateful for the tremendous generosity of Arthur J. Gallagher & Co. and know that its contribution will be instrumental in cultivating a dynamic next generation of risk and insurance talent,” says Donna Galer, chairwoman of Spencer Educational Foundation Inc.
Since its formation in 1979, Spencer Educational Foundation has awarded 454 student scholarships totaling US$3.6 million and university grants totaling US$1.3 million in the United States, Canada and United Kingdom.

ISO, a company that advises companies on risk, says it has filed the industry’s first standard coverage option for commercial property owners interested in rebuilding damaged property with green alternatives.
“ISO participating insurers will be able to offer their clients an innovative coverage solution that taps into the current desire of many individuals and businesses to lessen their impact on the environment,” said Kevin B. Thompson, senior vice president of insurance services at ISO.
“Today, commercial buildings are among the largest energy consumers and waste generators. Significant attention has been focused on how to reduce the impact of commercial buildings on the environment, and this new coverage is designed to allow insurers to help their clients address that issue.”
There are three major components of the new coverage.
•    Green upgrade coverage will augment existing replacement-cost coverage by providing an additional limit of insurance to address loss settlement of damaged property using more energy-efficient, environmentally-preferable materials, products or design methods in construction. These include products under the designations ‘Leadership in Energy and Environmental Design (LEED)’ or ‘Energy Star.’
•    Expense coverage provides an additional limit of insurance to be applied to expenses related to green upgrades.
•    A business interruption option extends the insured’s policy period for restoration. This component recognizes that reconstruction using green standards may take longer than is customary with ordinary construction methods and materials.