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.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.silva@chartisinsurance.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.