Insurance For Renewable Energy Power

Renewable Energy Insurance Options

Since every entity has unique risks and exposures, we provide a variety of coverage options tailored to the specific needs of renewable energy projects.

Property Damage Insurance

Renewable energy power projects are heavily reliant on property damage insurance to ensure the financial protection of their assets. This coverage safeguards the solar panels, wind turbines, batteries, transformers, cables and buildings from physical harm or destruction. Additionally, this type of insurance also allows for compensation in case of business disruption due to a covered incident that affects the operation of the project; including loss of revenue or extra costs incurred during recovery efforts.

Property damage insurance for renewable energy power projects can be tailored to the unique needs of each project, including its technology, location, size, duration and contractual obligations. Depending on the strategy and preference of the owner or developer involved in a project, property damage insurance can either be arranged individually or as part of an overall portfolio approach.

Some of the key factors that affect the availability and cost of property damage insurance for renewable energy power projects are:

• The quality and reliability of the technology used in the project. For insurers to provide coverage, they assess the track record and performance history of technology providers and contractors associated with a project and any warranties or guarantees provided.
• The exposure and vulnerability of the project site to natural hazards, such as windstorms, floods, earthquakes, landslides, hail, lightning, fire, or snow. Insurance companies will assess the historical data, climate models and project design details to accurately measure the frequency and severity of potential hazards as well as how capable any constructed projects are of withstanding them.
• The security and resilience of the project against cyber threats, such as hacking, malware, denial-of-service attacks, or ransomware. Insurers will thoroughly assess the project owner or developer's cyber risk management practices, controls and procedures in addition to evaluating the potential repercussions of a cybersecurity attack on its operation and revenue.
• The compliance and alignment of the project with the relevant laws and regulations in the jurisdiction where it operates. Insurance providers will assess the reliability and predictability of renewable energy power projects' legal and regulatory environment and any potential liabilities resulting from breaches in regulations or litigation disputes.

Property damage insurance can be an invaluable safeguard to defend the project owner or developer's investment and reputation in renewable energy power projects. Yet, it is not a replacement for thorough risk identification and mitigation measures across all stages of the project life cycle.

Business Interruption Insurance 

Business interruption insurance is another essential form of coverage for renewable energy power projects. This type of policy compensates the project owner or developer for any losses incurred due to the interruption or suspension of operations following a covered incident, such as a storm or fire.

For instance, if repair and maintenance works on the project take longer than expected, business interruption insurance allows for the replacement of lost income and additional costs of running the project differently. This coverage can also be extended to include contingent business interruption, which covers losses due to the disruption or damage of a supplier's business operations.

Business interruption insurance is often offered as part of a property damage policy but can also be purchased separately.

Equipment Breakdown Insurance 

Equipment breakdown insurance helps protect against losses from the sudden and accidental damage, destruction or malfunction of equipment used in renewable energy power projects. This type of coverage applies to all types of machinery, production equipment and other assets that are essential for the project's operation.

Equipment breakdown insurance provides coverage for the cost of repairing or replacing damaged equipment and any losses related to business interruption caused by the breakdown. This type of policy also provides additional coverage for third-party liabilities, such as legal costs or damages awarded to a third party due to the malfunction of the insured's machinery.

Pollution Liability Insurance 

Pollution liability insurance can provide additional protection for renewable energy power projects. This type of policy covers bodily injury, property damage and third-party liabilities resulting from pollution or contamination of the project site. It also covers the costs incurred for removing and disposing of hazardous materials and any necessary clean-up works.

Pollution liability insurance is essential for renewable energy power projects that have the potential to cause environmental damage or harm, such as through the use of hazardous chemicals. It is important to note that this type of cover does not always provide protection for losses caused by emissions or wastewater discharge resulting from the normal use of the project.

Cyber Liability Insurance 

Cyber liability insurance is becoming invaluable for renewable energy power projects in an increasingly digitalized world. This type of coverage provides protection against losses caused by cyber-attacks, data breaches or other system interruptions that may occur during the project's operations.

Cyber liability insurance policies can cover a wide range of expenses, including costs related to responding to the incident, restoring lost data, repairing damaged systems and notifying affected third parties. This type of coverage is becoming increasingly important as renewable energy power projects rely more and more on digital and automated technologies.

Professional Liability Insurance 

Renewable energy power projects should not operate without a professional liability insurance policy. This coverage is essential to protecting the project owner or developer from any legal and financial repercussions arising from errors, omissions, or other negligent acts.

Professional liability insurance can cover legal costs and any damages awards or settlements arising from a lawsuit. The policy can also provide coverage for any associated costs, such as loss of income or reputational damage. This type of coverage is important to have in place in the event that a project fails to meet contractual obligations or causes harm to third parties.

Contractors’ Errors & Omissions Insurance

If a renewable energy power project involves the use of contractors or subcontractors, it is important to have contractor’s errors & omissions insurance in place. This coverage provides protection against any financial losses resulting from errors, omissions and negligence on the part of contractors or subcontractors working on the project.

Contractors’ Errors & Omissions Insurance can cover a wide range of losses, including legal costs and damages awarded to a third party due to the contractor’s negligence. It is recommended that renewable energy power projects obtain this type of insurance to protect against any potential liabilities arising from the work of contractors or subcontractors.

Product Recall Insurance

Renewable energy power projects should always consider investing in product recall insurance. This form of coverage safeguards against any losses that may arise from a recalled item or service, including the expenses associated with identifying and remedying any faulty aspects of the project.

Product recall insurance can cover various expenses, including costs related to notifying third parties, replacing or repairing faulty products and reimbursing customers. It can also provide coverage for associated costs resulting from reputation damage or lost income.