NEW YORK--()--Lexington Insurance Company today announced the introduction of CarbonCover ODS, an innovative property insurance policy that addresses the emerging needs of the climate change and greenhouse gas emissions sector. CarbonCover ODS is designed for project developers who are collecting tangible physical assets for the purpose of creating emission reductions and carbon offset credits.
“The unique loss valuation structure of CarbonCover ODS allows project developers to protect against lost income they could suffer when they are using property with relatively low replacement cost value to create a higher-value carbon offset credit -- and that property is lost or damaged during the process”
CarbonCover ODS responds to direct physical loss or damage of a physical asset that is being collected to create carbon offset credits. These assets can include ozone depleting substances (ODS) that are removed from refrigeration systems or methane gas that is extracted from landfills or underground mines. Direct physical loss or damage to the asset is measured as the value of the carbon offset credits that would have been issued for the destroyed asset absent the loss, in accordance with a carbon registry’s project protocol.
“The unique loss valuation structure of CarbonCover ODS allows project developers to protect against lost income they could suffer when they are using property with relatively low replacement cost value to create a higher-value carbon offset credit -- and that property is lost or damaged during the process,” said Erik Nikodem, Executive Vice President and Property Division Executive of Lexington Insurance Company. “Traditional property policies don’t respond to the true value of the insured’s loss.”
CarbonCover ODS is the third product in Lexington’s CarbonCover suite of insurance solutions for businesses in the developing climate change and greenhouse gas emissions sector. The suite also includes CarbonCover Registry, which provides professional liability insurance for registries that track, confirm, and verify carbon offset credits; and CarbonCover Design & Confirm, which extends Lexington’s architects and engineers professional liability coverage to expressly cover claims arising from greenhouse gas consulting services or emission reduction verification services.
For more information regarding CarbonCover ODS, please contact Nadine Silva, Lexington Insurance Company, at (617) 330-8206 or Nadine.email@example.com. Brokers can also visit www.lex.tv for the EcoSurance episode of LexTV, featuring information on Lexington’s solutions for a green and sustainable future.
Chartis is a world leading property-casualty and general insurance organization serving more than 70 million clients around the world. With one of the industry’s most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.
Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at www.chartisinsurance.com. All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.