When looking at the main types of coverage required for a photovoltaic solar farm, we have to differentiate between:
- Erection Phase
- Operational Phase
1. Erection Phase
Main coverages during the Erection Phase:
- All Risk Erection
- ALOP (Loss of Profit)
- Transport and Transport ALOP
- Design Error
- Test and commissioning
- Third Party Liability, including coverage for failure in the supply of electricity
These insurances should cover all the components of the windfarm (panels, civil works, control room, inverters, trackers, machinery and electrical equipment, electrical lines, transformers, substations, etc.).
2. Operational Phase
Main coverages during the Operation Phase:
- All Risk Property Damage
- Business Interruption
- Machinery Breakdown
- Design Error
- Contingent Business Interruption
- Third Party Liability, including coverage for failure in the supply of electricity
All Risk Property Damage should cover all the components of the windfarm (panels, civil works, control room, inverters, trackers, machinery and electrical equipment, electrical lines, transformers, substations, etc.).
This insurance complements the manufacturers’ warranties and maintenance contracts which apart from anything else, never cover external damage.
It should be noted that business interruption is not normally covered by the manufacturer’s warranty or by any maintenance contract, since both of these merely cover the material costs of any repairs (apart from any contractual penalties which never fully compensate the assureds for the losses undergone).
There is also the possibility to purchase a Solar Operational Performance insurance. This insurance policy is specifically designed to provide comprehensive protection for revenue forecasted in case of shortfall in energy output.
For more information please contact us or send us the enclosed questionnaire duly completed to receive an offer.