Solar panel insurance: Tailor made solutions
Are you looking for the right coverage of your large project, or several projects, or are you looking for an insured coverage of your warranties, then read the text below to find out what tailor made solutions we offer. Are you looking for full security of your investment in solar panels? Are you looking for solar panel insurance knowledge – and solutions? Do you wish to cover your warranties? Then continue reading!
Insurance during the construction phase
Construction All Risk (CAR)
The CAR-insurance covers two types of risk. The first risk covered is damage to the property, such as damage to buildings on which the construction is being carried out or to the structure not being properly constructed. The second risk covered is liability for third-party claims for injury or damage to third party property while working at the construction site.
The transit insurance covers your belongings whilst they are transferred or held between the points of origin and final destination.
Business Liability Insurance
The business liability insurance provides cover in the event bodily injury or property damage occurs as a result of your business operations to a third party.
Surety bonds are insurance products that secure the financial risk of one party against the default of another party to the same contract. Most commonly this is associated with contractor default.
Insurance during the operational phase
Operational All Risk (OAR)
This solar panel insurance covers the PV-installation against damage or loss as a result of:
This insurance covers material damages due to external causes such as fire, theft, vandalism, sabotage, hail damage, snow load, lightning strike, overload, operational mistakes, clumsiness and negligence and animal bite. Also the consequential losses as a result of the damage such as labor, transport costs and prevention costs are covered.
Mechanical and electrical breakdown
Mechanical and electrical breakdown covers the consequential losses resulting from a defective part due to a sudden and accidental failure that necessitates repair and/or replacement. This insurance does not provide coverage for the loss of damage to any defective part itself.
Business interruption compensates the actual loss of income due to loss of production as a result of a property damage or a mechanical and/or electrical breakdown.
Optional in the Operational All Risk insurance:
The inherent defect covers against damages due to inherent defect of the solar panels (up to 20 years) and/or inverters (up to 7.5 years). An inherent defect is a damage caused by the nature of or a defect in the panel or inverter itself. In other words, it’s a manufacturers’ defect. Examples of inherent defect are delamination (detachment of the various layers of the panel), bad soldering or short circuit in the junction box. The inherent defect coverage remains in force even if the manufacturer has gone bankrupt (insolvency protection). This optional cover is only possible if panels, certified by Solarif, are used. It covers the material loss of the panel or inverter, the consequential losses due to the material loss and the business interruption. On the homepage you can find our list of certified products.
The natural disasters coverage insures risks such as flood, earthquake, volcanic eruptions, tsunami, bushfires, typhoons and hurricanes. The premium is based on the exact location. To provide a quote we need to receive the exact GPS-coordinates of the location.
Contingent Business Interruption (CBI)
Contingent Business Interruption covers business interruption of the installation as a result of the first non-owned substation being damaged due to a sudden and unforeseen physical damage or loss. Due to this damage or loss of the non-owned substation it’s impossible to supply electricity to the grid. There is no physical damage or loss of your own insured PV-installation.
Political violence / terrorism
Political violence / terrorism covers physical damage, business interruption and extra expense up to $50m, employers’ and public liability and full building values or coverage on a first-loss basis. In addition this insurance covers sabotage, malicious damage, riots, strikes and civil commotion. But also munity, insurrection, rebellion, revolution, coup d’état, civil war and war, and NCBR.
Lack of the sun
Sun is not always a reliable source of constant power. Aerosols and atmospheric processes such as clouds and air moisture can cause local variations in irradiation of well above 10% of the expected value. Such volatility and uncertainty can be insured by a lasock of sun cover. The purpose of a lack of sun cover is to smooth revenues.
Operational Third Party Liability insurance
The owner of a PV installation, for example a SPV, should always have liability insurance in place. As owner you are liable for any damage to third parties caused during the execution of your business. An example of an operational liability is that you will be held liable if your panels are blown away and fall on someone’s head.
Political risk insurance
Investing in emerging markets has potential benefits for investors and lenders, but these benefits are accompanied by political risks which needs to be addressed. Political risk insurance can help investors and lenders to deal with these kind of risks and to help them to obtain access to funding sources with improved financial terms and conditions.
Political risk insurance products protect:
- investors against financial losses on their equity investments due to a variety of non-commercial risks; or
- lenders against the risk of missed scheduled payments on a loan due to a variety of covered risk events.
- types of coverage: expropriation, breach of contract, currency inconvertibility and exchange transfer, political violence, non-payment of financial obligations and unfair calling of bonds.
Professional indemnity insurance
Professional indemnity insurance (PII) protects professional advice- and service-providing individuals and companies if they are alleged to have provided inadequate advice, services or designs to a client. The professional indemnity insurance provides cover for the legal costs and expenses in defending the claim, as well as compensation payable to your client to rectify the mistake.
Product liability insurance
As a manufacturer or supplier of a physical product, there’s always the possibility that your product could cause damage to a third party (property or another person). Product liability insurance covers the cost of compensation for personal injuries caused by a faulty product or loss of or damage to property caused by a faulty product.
Even if you did not manufacture the product you may be held liable for compensation if your business’s name is on the product, your business repairs, refurbishes or changes a product, you imported the product from outside the European Union, you cannot identify the product’s manufacturer or the manufacturer has gone out of business. Product liability insurance does not cover faulty products resulting from bad workmanship and financial losses to a person caused by your faulty product.
Performance warranty insurance
Performance warranty insurance is taken out by the manufacturer and protects the solar manufacturer in case of a performance warranty claim due to solar panels not meeting the performance specifications. The insurance bears the costs incurred by the panel manufacturer to honor the guarantee. The insurance also optimizes the balance sheet structure of the panel manufacturer. The insurance is not subject to third party claims.