On average, a solar panel system will cost at least $14,000. This estimate is for a simple system and will most likely go higher with more complex systems.
These renewable energy devices are significant investments, yet they will often not be integrated into your existing commercial property covers as these aren't permanent fixtures.
That's where commercial solar panel insurance comes in. Said commercial solar insurance protects your solar panel system from the occurrences listed within the policy documents. Usually, you'll be covered for everything from natural disasters to vandalism and theft.
Investing in commercial solar panel insurance ensures that you maintain your peace of mind as you are no longer worried about the financial investment you've made even when the unexpected occurs.
Making an investment in solar panels for your commercial buildings can be quite hefty. Unfortunately, this investment is not exempt from risks. You are exposed to the risk of vandalism, theft, damage, and other perils.
As such, you ought to look into insuring solar panels on your commercial buildings. This would cushion you from the losses you'd otherwise incur if this investment would be threatened.
Here are a number of policies you utilize in insuring solar panels on commercial buildings.
Commercial property insurance doesn’t only cover the building but also anything that’s attached to it, including the solar panels.
Therefore, if the solar panels in your commercial building get damaged by fire, theft, vandalism, and other covered perils, then commercial property insurance can cover the cost of solar panel repair or replacement.
But note that the coverage you’ll get might be lower than the amount of intended coverage for the building itself. Insurance companies only allow their commercial property insurance to provide $2,500-$10,000 coverage if installed solar panels get destroyed or damaged.
A business owner’s policy comes with a commercial property coverage that covers the building, equipment, and installations. And so, you can also use this to cover the solar panels on your commercial building.
Equipment breakdown insurance can be also used for insuring solar panels on commercial buildings. Coverage applies if the solar panels break down due to external factors such as heat or impact.
Equipment breakdown insurance will cover the repair or replacement of your solar panels. The amount of coverage you’ll get will depend on the insured value of the solar panels installed in your commercial building.
As part of insuring solar panels on commercial buildings, you ought to consider purchasing environmental risk insurance. This policy indemnifies system owners from the risk of either environmental damage caused by the use of solar panels for commercial purposes.
There are a number of environmental policies that you want as part of your environmental risk insurance. These include
Pollution legal liability policies-This policy covers any risk with unknown pollution conditions as well as any harm that might come to a third party due to the pollution
Property transfer policies-This caveat on the policy transfers all the risk from the insured for any existing pollution claims and pays for any of the existing claims
Clean cost cap or stop loss policies-These are a collection of customized policies that help create a cost stopgap for any of the continued cleanup efforts
As an astute commercial property owner or manager who made investments in solar panels, you ought to protect the cash flow from said investment with a business interruption policy. This would mean that if you lost sales as a result of the system not being operational, you'd get reimbursed for the loss.
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The use of solar panels in your own commercial space adds another level of liability to your day-to-day operations.
What if the solar panels get blown by strong winds and hit someone or a property nearby? It’s not also far-fetched to think that the solar panels in your building can cause a fire, which can damage nearby structures.
That said, it’s important to discuss how you can get liability insurance for solar panels used for your business’s day-to-day operations.
Your general liability insurance comes with a premises liability coverage. And so, you can use it to cover the bodily injuries or property damage that your business’s solar panels will cause. So how much coverage do you get? Expect for the policy to offer $1 million-$2 million for medical treatments, reimbursements for property damage, legal expenses, and court judgments.
A solar liability insurance package is a good coverage option if you're working as a solar installation contractor. Even with careful operations and the best safety measures, you could still incur unexpected losses that would destroy years of hard work.
The first policy you want as part of your solar liability insurance package is general liability insurance. This policy covers the policyholder from the costs of death, injury, or property damage.
Further, if a solar panel that you've installed in the past causes an injury, the products and completed operations clause within your general liability policy will help pay for said damages.
Other than general liability insurance for solar panels, you want to get a professional indemnity policy. Professional indemnity insurance grants protection if a client files a claim because you and employees committed negligence or mistakes during a solar panel installation project.
Investment into solar rooftops is viewed by underwriters as being quite risky. This is likely due to the fact that the technologies are newer, and there are fewer installations relative to technological deployment. So what can you use as a solar rooftop insurance?
A commercial property policy can be also used as an insurance for solar rooftops since it will come with an outdoor installation coverage.
On another note, the utility services interruption coverage of commercial property insurance will also help if your business primarily uses its solar rooftop for electricity. Utility services interruption coverage will take care of lost income.
Another option for insuring the solar rooftop you own is an equipment insurance endorsement. This grants $2,500-$5,000 worth of coverage. Equipment insurance can be added to your general liability or commercial property policy.
In recent years, generating electricity through large-scale solar farms has gained tremendous popularity. This has seen an increase in the share of clean energy which in turn has meant huge investment into solar farms.
Despite this huge investment and growth in the niche, there's still a challenge in the solar farm insurance market. This is particularly since solar farms face significant risks, including the risk of theft, extreme weather, and breakdowns.
Fortunately, there are still providers willing to offer solar farm insurance despite the insurance losses that these risks could bring about. In fact, providers have taken it a step further by segmenting solar farm insurance into different phases and operational risks.
Specifically, you could get solar farm insurance for either the construction phase or installation phase. The construction phase portion of the solar farm insurance policy helps you navigate the advanced loss of profits, terrorism, and public liability. On the other hand, the solar farm insurance operational phase helps you wade through the loss of revenue, terrorism, and public liability.
Overall, the solar farm insurance policy you get will help you protect the project's viability by minimizing disruptions and delays during whatever phase of the investment you are in.
Once your solar power plant is up and running, you are susceptible to operational risks as well as physical damage or loss. To protect yourself, it is best that you invest in solar power plant insurance.
Solar plant insurance provides cover against loss or damage to any owned or managed plant. In the event that an insured loss occurs, the rooftop solar plant insurance will be able to cover the sums you are legally liable to pay with respect to the damage to the property. Besides, the policy helps meet the continuing hiring charges that are levied on you.
In instances where you want to get project financing or are entering a loan agreement, the financer might require that you provide proof of solar power plant insurance before they can process the funds for you.
The average commercial solar panel insurance cost is $27 per month or $324 per year for a $1 million general liability coverage. Property coverage for solar panels, on the other hand, is $417 per month or $5,004 per year.
It is prudent to mention that insurance companies have come up with a singular calculation to determine how much insurance premiums you'd pay for your commercial solar panels. Specifically, the cost of insurance will be calculated by multiplying a "rate" with an "exposure unit".
Here’s a table showing how much the best insurance companies charge for their $1 million general liability insurance for commercial solar panels:
|Cost per Month||Cost per Year||Best for|
|NEXT||$22||$264||Best overall; Fastest general liability insurance for solar panel installation|
|CoverWallet||$30||$360||Comparing solar panel insurance quotes online|
|Thimble||$35||$420||On-demand coverage for commercial solar panels|
|Hiscox||$37||$444||Comprehensive business equipment coverage endorsement for solar panels|
|Chubb||$55||$660||Expansive solar panel systems|
The cost of a $1 million general liability insurance for solar power plants is $180 per month or $2,160 per year. Factors that affect the cost of premiums are business size, claims history, number of employees, and others.
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Identifying your need for commercial solar panel insurance is the first step towards protecting your investment but it is only part of the solution. You've also got to identify providers who offer the best solar panel insurance products. Here's a list of the best commercial solar panel insurance companies for your consideration.
Issues an online proof of insurance instantly
Fastest general liability insurance for commercial solar panels
Great customer service and reputation
Outstanding value for money
Get a 10% discount
Couldn’t find any
NEXT doesn’t have a coverage made specifically for the damage or destruction of solar panels installed in commercial buildings. However, for solar panel installation, you might get coverage through its solar panel contractor insurance package that offers a general liability, commercial property, professional liability, and other business insurance policies.
Best for: Best overall; Fastest general liability insurance for solar panel installation
Average cost: $22 per month
Our rating: 10/10
Compare quotes over the phone
Can refer you to partners who provide exclusive property coverage for solar panels
No hidden charges
Easy online policy management
Couldn’t find any
CoverWallet doesn’t have a tailored coverage for solar panels. However, this insurance broker can take you to partners who provide exclusive coverage for solar panels installed on buildings. You just need to use its online quotes comparison platform.
Similar to NEXT, CoverWallet has a solar contractor insurance package that covers solar panel installation activities.
Best for: Comparing solar panel insurance quotes online
Average cost: $30 per month
Our rating: 10/10
Quick to issue an estimate of your rates
Grants same-day coverage
General liability insurance comes with business equipment that can be used to cover solar panels
Customer service can’t be reached by calling
Thimble’s general liability insurance comes with business equipment coverage. This can be used to cover solar panels and other installations in your building. You can also use this company’s commercial property insurance to cover solar panels as it comes with outdoor signs and installations coverage.
Best for: On-demand coverage for commercial solar panels
Average cost: $35 per month
Our rating: 10/10
Quick to process claims
An insurance company with a considerable amount of experience
In-house team of underwriters
Not accredited by BBB
Similar to Thimble, Hiscox’s general liability insurance comes with a business equipment endorsement. The only difference is that coverage is much higher and can insure up to $100,000 worth of solar panels. By the way, Hiscox also covers solar panel installation activities.
Best for: Comprehensive business equipment coverage endorsement for solar panels
Average cost: $37 per month
Our rating: 9/10
Third-party components are included
Immediate coverage with no waiting periods
PowerGuard doesn't cover the cost of general maintenance
Any loss arising from direct physical damage to the solar panel is excluded
PowerGuard, established in 2007, offers a number of risk insurance plans for clients in the alternate energy industry, particularly solar power. There are a number of products offered by PowerGuard.
The first is the PV manufacturer coverage, that's meant for investors and manufacturers in the solar power industry. This product offers coverage for the entire 25 years of the warranty period with coverage coming into effect immediately following purchase. This product also includes protection for third-party components and workmanship. Note that even in the event of bankruptcy, the protection should continue.
For solar businesses in the battery and energy storage niche, Powerguard offers a similarly comprehensive product. This product ensures protection for the ten-year warranty period that most of these solar batteries and energy storage devices have.
An additional program is the Revenue Protection Program dubbed RevGuard™. This program is designed to cover solar projects against loss of revenue as a result of defects in solar modules, inverters, and other system components.
Best for: Global reach
Average cost: $40 per month
Our rating: 9/10
Unparalleled solar panel underwriting expertise
Fast and flexible responses
Comprehensive coverage on multi-line package for domestic and international policyholders
Dedicated claim and risk control services
Not a BBB-accredited business
Chubb's expertise in solar panel insurance is rooted in the more than 25 years of experience it's accrued in the renewable and alternative energy industry. Chubb covers solar panels through its commercial property coverage that’s underwritten as an all risk policy.
On a side note, Chubb also provides coverage to different businesses that work with solar panels. Policies offered are general liability, builder’s risk, excess liability, and more.
Best for: Expansive solar panel systems
Average cost: $55 per month
Our rating: 9/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!