What insurance covers are available for my renewable energy installations?
We have seen a large number of farming clients that have chosen to install renewable energy plants, most commonly to harness wind and solar energies. Most clients are choosing contractors to install these apparatus and we recommend that you always ask to see proof of their insurance arrangements. In addition to any public liability and employer’s liability cover, they should also have contract works insurance covering the property they are working on.
As thousands of pounds are spent on these projects and the income and cheap energy supply often being relied on in future business models, we recommend taking out specifically designed policies to cover you turbine or panels on an ‘all risks’ basis. Storm damage is of particular worry to turbine proprietors and weight of snow and hail being a problem for panels on the roofs of collapsing barns. Attempted thefts of any equipment, material or cabling should not be underestimated in the current climate.
The policies we can provide are competitive and comprehensive in the cover provided and include extra benefits such as breakdown, which will protect you if any warranty expires, or is lost following your manufacturer going bust. There are insurance products on the market that do not include lightning damage to turbines, so be sure to check a quote thoroughly, or use a broker who will do that for you.
Loss of income cover is also available to cover your business against the lost tariff income and to subsidise the buying in of electric from the grid. You should be aware though that no insurer will cover any fall in the tariff rates or failure to generate due to lack of wind or light.
Author: Alec Bond, Farmers & Mercantile Shropshire Office, Ludlow
