Renewable Energy Insurance Can Save Your Company: 3 Real-World Examples

If you have a company that works within the renewable energy industry, then the specialized coverage of renewable energy insurance can save you in the event of an emergency. Most companies carry some sort of commercial property insurance, which protects their buildings and the contents within. However, commercial property coverage does not address the many unique issues that companies within the energy sector face.

Here are three real-world examples of how renewable energy insurance can literally save your company:

1. Damage and downtime due to storms

Let’s say you own a solar power array. A hailstorm severely damages your equipment, which is very expensive to repair and can take quite a bit of time to complete. In the meantime, your company is losing income because of your decreased ability to generate enough solar power to meet consumer needs.

With renewable energy coverage, represented in this case by a property policy designed for solar arrays, you will be able to pay for the equipment repair with no problem. A standard commercial property insurance policy may not adequately cover all of the electronic switching and power management equipment that was damaged.  Any property that is damaged or equipment that breaks down is covered under your policy. In addition, there is business interruption coverage, which covers lost income due to property damage or equipment breakdown. It will help fill in the gap in your income until your equipment is back at full power.

2. A huge workers’ compensation claim

Workers’ compensation claims are common within the energy sector. The work can be dangerous and accidents are common. Enforced safety procedures and policies are necessary to control losses.  Loss adjusters that understand the energy industry and the people in it can mitigate the cost of a claim after a loss occurs.

Reducing the frequency and severity of your workers compensation claims will not only result in a safer, more productive work force, it will also reduce your future insurance premiums.

3. A serious chemical spill at your plant

If you work within the renewable energy sector, then pollution should be a concern for you. A commercial insurance policy generally will not address this issue, which could leave your company with no protection in the event of a loss. If you are an ethanol or biodiesel producer, it is particularly crucial that you carry pollution coverage.

Let’s say that you ship a load of ethanol via truck to a refinery to be blended with gasoline, but the truck turns over the highway and fuel spills into a local river. Who will pay for clean up? Who will help defray any allegations of third party injury or contamination? If you have pollution coverage within your renewable energy insurance program, you can act quickly and responsibly to rectify this situation.

If you work within the renewable energy sector, a comprehensive and cost-effective renewable energy insurance program can save your bottom line. If you do not have that kind of coverage in place, a specialized carrier can help you find coverage that suits your needs.

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