Insurance cover for solar projects
Over the past few years there has been rapid growth in solar power generation and country has achieved solar power installation over 1000 MW in last two years it self under the JNNSM and other state policies. While the investment in solar projects is high capital intensive process, the investors always always look for different insurance options for their risk coverage. The typical insurance options available for the solar project developers are as follows:
- Machinery Breakdown – electrical and or mechanical breakdown of any machinery or other equipment resulting in costly repairs or even replacement of the solar panels
- Business Interruption – cover for periods of operational downtime as a result of an Insured peril e.g. fire or storm damage, machinery breakdown and equipment failure.
- Property Damage – all risks cover to protect from any loss arising out of fire, etc.
- Contract Works – protection against any loss arising from property damage caused during construction of the project. Cover starts while solar panels are in transit to the job site and ends once the job is completed or the owner accepts the work
- Employers’ Liability – provides cover against risk of accident from usual workplace risks such as working at height and manual handling
- Public Liability – provides cover for any damage caused to third party property during installation of the panels. Essential for businesses engaged in Construction and Installation of solar panels and solar farms
- Marine Cover – Covers include Marine Transit for any loss of goods and Marine Delay in Start up to protect from any consequential loss in revenue
Some of the companies have also started providing the generation insurance for the solar projects in order to cover the solar irradiation risk.