Insurance for Renewable Energy
Insuring renewable energy projects has been a rapidly expanding part of our business at Farmers & Mercantile over the last 5 years or so with farmers, landowners and rural businesses rapidly diversifying into the renewables sector. We have considerable experience in placing a variety of insurance covers, ranging from small solar projects on farmhouses through to larger Anaerobic Digester Plants and large multi turbine sites.
On larger, solar, wind energy and AD plants it is important to consider insurance implications at an early stage in the project. Insurance cover that may be required comes under the following headings:
- Public and Products Liability – to cover potential claims for illness, injury or damage caused by your electricity production, i.e. blade shears off a turbine and hits a walker on a footpath
- Damage to Renewable Machinery – this covers perils such as fire, lightning, storm, flood, hail, impact vandalism etc. which necessitates repairs being required to the machinery
- Breakdown Cover – in conjunction with your warranty this covers the cost of replacement parts and labour in connection with a breakdown
- Loss of Production/Business Interruption Insurance – this covers you against loss of electricity production following events such as fire, lightning, storm and breakdown to name a few.
- Construction Phase Cover – this covers damage to the renewable plant during the course of construction and whilst on site awaiting construction. Delayed start-up cover can be included which covers against loss of production due to a delay being incurred during the course of construction.
There are a number of insurers who have entered the renewable energy insurance market which has helped create good competition to ensure premiums are competitive but buyer beware if bargain hunting, price is only one element of the overall insurance package. The level of cover provided is equally important and this can vary widely between different insurers. It is vitally important, therefore, that you use a special broker like Farmers & Mercantile to lead you through the maze of covers and premiums available in order to arrive at a product best suited to your needs.