Green Insurance: Encouraging Sustainable Pratical

Eco-friendly replacement materials endorsements, which are offered on some standard homeowners policies. After a loss, these allow the insured to replace or rebuild with more sustainable materials, practices and products.Adopting practices that are known to be safe for the environment—aka “going green”—might also help you save on your insurance costs. Whether you’re considering an eco-friendlier car, a more sustainable home or “green” business practices, check out this sampling of insurance benefits and products for the environmentally conscientious.

Green insurance incentives for motor vehicles
Fossil fuels deplete our resources and contribute to pollution—and many insurers offer discounts for vehicles that don’t gas guzzle.

▪︎ Pay as You Drive (PAYD) programs,: which require the installation of a device to track the miles driven in your car. The PAYD offers policy discounts to drivers who, according to their sensor, drive fewer miles than the average—thus saving consumers money while reducing accidents, congestion and air pollution.
▪︎ Alternative fuel premium discounts: which apply if your car uses an alternative energy source such as biodiesel, electricity, natural gas, hydrogen or ethanol.
▪︎ Endorsements that allow hybrid replacement —that is, optional coverage whereby, after a total car loss, the insured can replace his or her traditional automobile with a comparable hybrid vehicle.
▪︎ Hybrid vehicle premium discounts are offered by a number of auto insurance  companies (and similar discounts may also be available on boat insurance  for hybrid-electric boats and yachts).

Green insurance for homes
Insurers are helping to promote sustainable building practices by offering eco-friendly policies to homeowners, which include options such as:
▪︎ Broad coverage for alternative energy sources :For homeowners who generate their own geothermal, solar or wind power and sell any surplus energy back to the local power grid, there are now policies that cover both the extra expense of temporarily buying electricity from another source and for the income lost during a power outage (as long as the outage is caused by a covered peril). Policies also generally cover the cost of getting back online, such as utility charges for inspection and reconnection.
▪︎ Eco-friendly replacement materials endorsements : which are offered on some standard homeowners policies. After a loss, these allow the insured to replace or rebuild with more sustainable materials, practices and products.
▪︎ Premium discounts for LEED certified homes: LEED is short for the Leadership in Energy and Environmental Design Green Building Rating System. This system, developed by the U.S. Green Building Council, is a recognized environmental standard in the building world and has high efficiency and sustainability standards.

Green insurance for businesses
There are many green commercial property insurance policies and endorsements directed at specific segments of the business
community such as manufacturers. Examples of these include policies that:
▪︎ Allow “green certified” rebuilding in the event of a total loss. In addition to the building itself, this coverage may pay for engineering inspections of heating, ventilation, air-conditioning systems, building recertification fees, replacement of vegetative or plant covered roofs and debris recycling and loss of income and costs incurred when alternative energy generating equipment is damaged.
▪︎ Cover installing “green” building systems and materials to replace the standard ones, after a loss. These eco-friendly replacements would include energy efficient electrical equipment and interior lighting, water conserving plumbing and nontoxic, low odor paints and carpeting.

What is Green Policy
Climate change is a serious global issue that poses many risks to environmental and human systems. Human activity is cited as the main cause of climate change, but organisations also contribute significantly. Going green has numerous benefits at home, in the workplace, and to the economy at large and brands and businesses have made significant shifts toward greener practices over the last few years. Our latest article explores the benefits of a Green Policy in your organisation.A Green Policy is your company’s statement about the commitment to sustainability and environmental management that your business is prepared to make. Having a formal green policy shows your employees and customers that managing environmental issues is a high priority for your company. Sustainability policies offer companies a unique opportunity to declare both internally and externally the strategies they are implementing to protect the economic and environmental viability of their business

Why do you need a Green Policy?
In  addition to driving social and environmental change, sustainability initiatives can contribute to an organisation’s overall success. It may seem counterintuitive that spending more money on sustainable business practices can boost a company’s profitability, but studies show that the most sustainable companies are also the most profitable.

Benefits of Green Sustainability Policy
▪︎Green sustainability brings several benefits to organizations and the overall environment . It maximizes the benefits of long-term environmental undertakings . Some of the main benefits of green sustainability are:
Economic : The sources of renewable energy reduce the energy consumption, thus lowering the electricity bills.
Health: The positive environmental effects of green sustainability improve the health of the people affected, improving the quality of the air they breathe, the food they consume, and the place in which they live.
Environmental : Green initiatives have a tremendous positive effect on the environment. For example, greenhouse emissions and air pollution is reduced by organic farming. 

Green vs. Sustainable: The Main Difference 
Many ‘Green’ products or processes are also sustainable. But, while something may be green and sustainable at the same time, the two terms have their separate definitions, and even differences. 
Going green means using environmentally friendly products and services. Sustainability means using products or services in a way that does not damage the future generations’ resources. Hence, while a final product may be green, its manufacturing or production process may not be sustainable at all. For example, products that require a lot of energy to be produced cannot be considered sustainable. If the same products are made from renewable resources, they can be considered green.To sum up, when discussing the impact of green sustainability on future generations, both green and sustainability have their own importance, since green products would help to reduce wastes, while sustainable production would help in maximizing the resource efficiency. 

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