You may already have commercial property insurance, but if you work within the renewable energy sector, your company needs to have specialized renewable energy insurance. While commercial property insurance will cover your buildings, their contents, and outside structures, it may not adequately address the many problems common to the energy industry. In this article, we break down some of the basic things you need to know about this kind of specialized coverage.
What does commercial property coverage do?
Any business that owns, rents, or leases property must carry this kind of coverage. It provides protection for your buildings, the contents inside, and any outlying structures. Your policy can be tailored to your specific needs, but this coverage can provide protection for merchandise, furniture, equipment, accounting records, electronic data, and even signage.
When you carry this kind of insurance, you should opt for a broad policy that covers a wide range of possible perils. These are threats posed by fire, vandalism, extreme weather such as tornadoes and hurricanes, and even riots. This will help protect your property in the event of an unforeseeable emergency.
What does renewable energy insurance do?
Renewable energy insurance adds to the protection offered by commercial property coverage. It addresses concerns that are unique to the energy sector and not necessarily covered by standard commercial policies. This kind of policy provides protection against:
- Property damage–such as lightning damage to a wind turbine during a storm;
- Equipment breakdowns–if your equipment is damaged and taken off-line due to the unexpected implosion of a fermentation tank at an ethanol facility, this will provide coverage for income loss and repairs;
- Business interruption–if your equipment damage interrupts your business, your lost income can be replaced and extra expenses reimbursed;
- Workers compensation–protects your company and pays the medical and legal fees if an employee is injured on the job. Many standard insurance companies will not accept renewable energy risks;
- Liability insurance–basic coverage if your company is held liable for injury or property damage to a third party;
- Business auto insurance–protection for the company’s vehicle fleet;
- Umbrella policy insurance–protection over and above what your basic liability policy pays out in the event of a catastrophe;
- Pollution insurance–if you have a chemical or fuel leak that requires cleanup and possible incites allegations from third parties.
Does my business need this kind of specialized coverage?
Every business should carry commercial property, liability, auto and workers compensation coverage. If your business is within the energy sector, you should have specialized renewable energy insurance coverage that enhances those standard policies to cover your unique exposures. This includes the following kinds of businesses:
- Biodiesel producers;
- Wind power facilities;
- Solar power facilities;
- Ethanol producers.
If you are unsure about how this kind of coverage can help protect your company, consult with a carrier who offers specialized insurance products. This carrier will be able to assess your business’ needs and offer a comprehensive, cost-effective solution for you.
Source by Russ Birch
