The one thing all alternative energy operations have in common is that they are relatively new, and they each have unique exposures that can make placing their coverage more challenging. It is critically important that agents work with carriers who understand these new technologies and have coverages designed to support them. Read more.
Important considerations & challenges:
The basic fit of the operations may be considered a hybrid of other specialties (roofing, electric, etc). Carriers will need to be comfortable with all of these specialties to be willing to write coverage.
The professional exposure needs to be carefully considered when placing coverage. Many of these risks have a significant professional liability exposure that goes above what a trade contractor would have.
The environmental ramifications of their work. Pollution conditions caused by the installation of the systems, or by their operation, can be considerable.
The placement of the Property coverage. Solar and wind installations are both uniquely sensitive to environmental conditions. A single hailstorm can decimate a solar field or wind farm. Earthquake, flood, and fire are all significant property risks for these facilities.
The efficacy of the system installed. Many alternative energy projects are built with an expected return which ultimately finances the project; and there is a rising incidence of suits related to systems underperforming what was expected. This can come back against the installer or the operator of the facility.
While the opportunities presented by the growing alternative energy field appear limitless, there are challenges associated with insuring these risks. Agents need to focus on working with an environmental specialist who can help them meet the unique needs of this class of business. Read more about alternative energy account challenges & opportunities >>