The evolution away from traditional fossil fuels and into more sustainable renewable energy production has been rapid and continues to grow at a significant rate as awareness and technology changes. In fact it is widely reported that the UK is decarbonising at the quickest rate of any of the G20 nations.
However, as with any sector that grows so quickly though, there are a number of challenges that have also evolved and can potentially create unintended knock on consequences. New sectors and new technology take a while to be fully understood by insurance companies as actuarial data takes decades to build up, so volatility can be seen in providing products and capacity to take on risk.
There is also a huge variation of quality of the infrastructure as investment comes quickly and mistakes in the planning design and construct phases can have significant operational and therefore insurance related impacts.
High quality operators, require high quality advice and access to trusted markets – or they will find themselves short of options as the sector has not yet developed fully, and insurance companies are rightfully cautious. Don’t let the lowest denominator affect your business – choose a specialist who can separate you from the mass market problems, and find solutions that reflect your quality and your approach.
Whether on or offshore, UK wind projects are the most established method of renewable energy providing nearly half of the renewable energy capacity in the UK.
We focus on a holistic relationship throughout all planning, installation, operational and decommissioning phases. We understand the complexities of each phase, and we have trusted insurer relationships that understand the quality segment of the market we focus on and work with.
We can come in at any stage and add value, but our advice is most valuable in the planning phase, as we understand the areas that need focus from manufacturer choice to layout design and maintenance planning. All are critical elements to ensuring future financial stability throughout.
Solar Photovoltaic has established itself as a major contributor to the UK renewable energy and the commercial operations are becoming increasingly widespread.
As impressive as the large installations are, we are seeing trends develop that can cause financial pain – from rural theft to maintenance challenges. The risks need careful thought, and even more careful management.
As a specialist, we understand what to look for and will play a proactive role in helping your project deliver the value that you set out for.
We all know the natural power of water, and we now have significant technology to harness this power and put it to good use as a sustainable energy source.
Whether river run hydro energy projects, or tidal based energy – understanding the nuances of your installation is going to be key to finding the appropriate solution for you.
We have access to genuine industry experts who partner with our expertise to bring you, the most seamless risk transfer programmes possible.
We want you to stay in your flow, and trust us to manage your risks in a professional and proactive way.
Anaerobic Digestion, Biomass, Biogas were slow to gain momentum in the UK, but we have now seen a sustained period of significant growth.
These methods more than any other, have caused the UK insurance market some pain. There have been multiple very large losses, which has added significant levels of caution into the underwriting community.
It has also brought into very clear focus, the varying levels of quality of design and installation, as well as ongoing maintenance. For projects that have invested the right commitment to controls and maintenance you could be finding yourselves without the choices or pricing that your diligence deserves.
Only a true sector expert has the trust of it’s providers, and we go the extra mile to understand the nuances of your approach and to then position that appropriately with our partners to get you the right cover at the right price.
We will work with you to understand the limit of indemnity required to cover the cost of the contract itself. That way your project is covered from a covered loss whilst at any stage of the construction phase.
It’s vital to be engaged as early in the process as possible, as decisions during this phase will have a knock on consequence when the site is operational.
Our expertise will be able to guide you from start to finish, and will add value at each stage.
This aspect will cover things like professional fees, breakdown or explosion during construction, offsite storage and debris removal if the worst was to happen.
Having public liability at all times is an absolute must when considering a renewable energy project. Understanding the right limit of indemnity will be one of the first things we would work with you on – typical limits range between £2m and £10m usually.
JCT 6.5.1 is an important contract to cover against. It works to provide you and any contractor with protection for any non-negligent damage which occurs.
Whatever the nature of any relationship with a contractor, having the right liability cover in place will give you peace of mind. We will understand the risks and contractual relationships to ensure you are fully protected.
There is a requirement for a great deal of plant and equipment to construct any renewable energy project. It comes with the territory.
Understanding these exposures early means we can put in place a flexible coverage that will ensure that whether hired in, or your own plant, you have the right cover and these assets are protected at all times.
Practical things can happen, keys can get lost or thefts might occur. Let us understand what you are doing and we’ll take care of the rest.
Renewable energy projects require careful planning, and usually a level of investment which will be inextricably linked to a time bound business plan.
Due to no fault of your own, your project could meet with delays due to a loss, and that could impact on your potential returns from the project.
This could lead to other complications, but this cover is fundamentally designed to compensate you for any loss of revenue which could occur. Which should keep anyone invested in the business plan a little happier.
At the point of being operational, the project infrastructure requires insuring against any loss that could occur.
Material Damage (MD) would cover things like any structures, alterations, additions or improvements, debris removal, professional fees and any additional cost of repair.
Business Interruption (BI) is fundamentally designed to ensure you can recover from a loss, and get back to the financial health you were at before the loss occurred.
There are so many nuances to these covers and each individual circumstance will be different and we will craft unique policies giving you the precise protection levels you need. Nothing more, nothing less.
As any business would have, you’ll have a need for Employers, Public and Products liability throughout the operational lifetime of the project.
We would recommend limits of indemnity based on your individual situation, but understanding the detail of your business at this stage allows us to arrange what can be complex cover, with the very best insurer partners in the sector.
Knowledge is vital to protect you against an increasingly litigious environment. Directors & Officers Liability would be another area we would always try to ensure you had cover in place.
There are insurers out there who will insure for a lack of performance due to abnormal weather conditions.
Obviously this is weighted towards wind and solar projects in the main, and realistically it is for larger projects where it would be financially beneficial and there would be some critical mass for an insurer to work with.
But we are always considering more innovative ways of utilising this concept of risk management, so please do get in touch if you’d like to discuss this further. In theory, it does bring some level of certainty and therefore sustainability to any business plan.
Another innovative approach to risk transfer is the topic of decommissioning.
There are methods of providing long-term security to the landowner, by adding cover for the future decommissioning project, without the need to fund it up front, and then manage the cost over the course of the project.
Another complex area, but demonstrates what can be done, and how the experts are always thinking differently.