New sustainable energy products using new and emerging technology make it difficult for insurance carriers to assess risk on green building projects.
Unlike on projects using standard materials, underwriters cannot look to many years of rigorous testing to see how products perform. This makes it hard to assess risk and offer policies on projects that use advanced features such as vegetative roofs, mass timber, or advanced solar panel technology.
New technology, materials, and construction methods can bring unforeseen risks, insurance executives say. Many green buildings have novel designs compared with those using conventional construction where much has been done the same way for years and the risks are well known.
Business interruptions caused by material damage in green building construction have generated costly and complex claims. These claims concern both the expense of replacing the damaged material and the amount of time it takes to replace it, especially given current supply chain difficulties.
Related Stories
Market Data | Feb 10, 2016
Nonresidential building starts and spending should see solid gains in 2016: Gilbane report
But finding skilled workers continues to be a problem and could inflate a project's costs.
Contractors | Feb 2, 2016
ABC: Nonresidential spending falls again in December
For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis.
Contractors | Feb 1, 2016
ABC: Tepid GDP growth a sign construction spending may sputter
Though the economy did not have a strong ending to 2015, the data does not suggest that nonresidential construction spending is set to decline.
Contractors | Jan 15, 2016
Controlling interest in Clark Construction sold to employee group
The death of its founder last year set the wheels of this transition in motion.
| Jan 14, 2016
How to succeed with EIFS: exterior insulation and finish systems
This AIA CES Discovery course discusses the six elements of an EIFS wall assembly; common EIFS failures and how to prevent them; and EIFS and sustainability.
Market Data | Jan 13, 2016
Morgan Stanley bucks gloom and doom, thinks U.S. economy has legs through 2020
Strong job growth and dwindling consumer debt give rise to hope.
Contractors | Jan 13, 2016
5 ways to handle conflict during construction
Rider Levett Bucknall's John Jozwick has five ways to curb disputes and prevent the situation from escalating to litigation.
Contractors | Jan 12, 2016
Will a notable credential make students preparing for construction jobs more marketable?
Zenith Education Group thinks so, as nine of its campuses offer training certification from the National Center of Construction Education and Research.
Contractors | Jan 11, 2016
Novum Structures will pay $3 million to settle violations of ‘Buy American’ regulations
Wisconsin design and construction firm charged with repackaging materials from foreign sources.
Market Data | Jan 6, 2016
Census Bureau revises 10 years’ worth of construction spending figures
The largest revisions came in the last two years and were largely upward.
