Who takes out insurance when developing a solar farm?

When building a solar park, you have to deal with all kinds of parties. Whether you are a developer, the owner of the land or the roof, or an EPC, everyone is involved in different processes during construction. But who takes out the insurance policies for a solar project?

Defective components, shifting weather conditions and other limitations have led to an increasing number of insurance claims in recent years. Each party could therefore face damages or other inconveniences. There may be material damage to the panels themselves, an accident at the construction site, or one of your employees stumbles over a loose cable from the panels. But who is responsible for taking out the insurance during the build of a project? A developer, the owner of the solar panels or an EPC’er?


First of all, the construction Allrisk. The Construction Allrisk is often purchased by the EPC’er. Yet it can be wise as an investor or future owner to purchase the CAR insurance yourself. By purchasing a Construction All Risk insurance policy as an investor or future owner, you prevent the possibility of your project(s) not being insured by the installer or EPC. You know your project is insured, you know exactly which protection is in place, and the most important, you are in control. In case of an insured event, the amount of the damage is paid to you and not to the installer or EPC. You receive the money, so you have the financial leverage to enforce a solution by the installer or EPC to solve the damage.

Business Liability Insurance

The Business Liability Insurance is especially for owners of solar installation. As an owner, you are liable if damage is caused to third parties by yourself, your employee(s) or your installation. There are various damages for which you as an entrepreneur can be held liable. For example when you or your employee accidentally knock over a cup of coffee and it ends up on an expensive third-party tool. A Business Liability Insurance protects you against these risks.

Professional Indemnity

A professional liability insurance is for anyone that is involved consulting on the job. The insurance covers pure financial loss caused by the insured. After all, professional mistakes can be made in consultancy work. The professional indemnity insurance is a supplement to the Business Liability Insurance.



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