Oct. 10, 2008 - Fireman's Fund has created a green insurance program designed to help ship owners meet new U.S. air quality requirements - an industry first.

New marine emissions regulations established by the Environmental Protection Agency, have created potential gaps in coverage for boat owners facing major engine repairs. Most existing hull and marine equipment policies only cover restoration of damaged equipment to its original operating conditions, and do not cover improvements that meet the new strict environmental standards.

The Fireman’s Fund says its green Hull and Machinery coverage will repair or replace a damaged engine with the most efficient model available to meet federal air quality requirements. And in the event of a total loss to an engine, the coverage also covers a portion of upgrades to the undamaged engine.

U.S. regulations are just the start of additional impending international regulations. The International Maritime Organization (IMO), a U.N. regulatory body, is deciding whether to place a tax on marine fuel as early as next year in a bid to reduce greenhouse gas emissions from the shipping industry.