As a renewable energy business, chances are you've invested significantly into tapping the growing consumer interest in cleaner energy alternatives such as wind or solar power. But despite how enticingly promising this landscape is, it's just as risky.
You're susceptible to project risks that can take a significant toll on your finances and reputation. For example, a commercial solar panel you operate might explode and injure someone nearby.
Given the implications of lacking protection, you want to invest in renewable energy business insurance. Read on to understand how a renewable energy insurance policy could be the competitive advantage you need while dealing with different exposures.
Renewable energy insurance is an insurance program that’s underwritten for wind power plants, biomass power plants, commercial solar panels, and solar farms, geothermal power plants, and biodiesel manufacturing plants. Also called alternative energy insurance, this consists of liability, commercial property, workers' compensation, and other types of business insurance solutions.
| CoverWallet | NEXT (Best) | The Hartford | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included |
| Hired/non-owned auto liability coverage included? | Yes | No | $1,000,000 |
| Equipment breakdown floater included? | No | Yes | Yes |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
Renewable energy businesses are heavily regularized by government authorities. This is because the use of chemicals, machines, and other facilities can endanger the public.
Third parties can file a claim if they sustain injuries or property damage because of an accident that happened on the site of your renewable energy project. Taking care of this exposure is general liability insurance.
Use the table above to see which insurance company offers the best general liability policy.
General liability insurance takes care of these expenses if clients, homeowners, civic groups, and government authorities hold your renewable energy business liable for property damage and bodily injuries:
Medical treatments
Reimbursement to the damaged properties
Attorney fees, court filing fees, and other legal expenses
Court judgments
General liability insurance can sort things out when the following happens:
An independent contractor files a claim after sustaining injuries while repairing equipment or building a structure
A government inspector gets exposed to chemicals, falls from a height, or had his valuables damaged while on the premises of your renewable energy project
Equipment accidentally injured students who were conducting a field trip at your site
Renewable energy businesses can avail a general liability policy with a $1 million-$2 million per occurrence and aggregate limit. It’s possible to get a higher limit upon your request to the insurance company.
A general liability policy added with a business equipment endorsement can help recover the value of solar panels, wind turbines, and other business equipment that was damaged or destroyed. However, the reimbursement you’ll get is very limited.
| CoverWallet (Best) | NEXT | The Hartford | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No |
| Deductible | $500 | $500 | $500 |
Renewable energy businesses can face heavy financial losses due to negligence lawsuits.
For example, a solar farm had to pay $6.5 million in a negligence lawsuit filed for flooding and property damage. Another is a wind farm who faced a $750,000 negligence lawsuit due to excessive noise that comes from its facility.
You can protect your renewable energy business against negligence claims by purchasing professional liability insurance. Use the table above to see which insurance company offers the best professional liability policy.
While negligence claims are the most common exposures covered, professional liability insurance doesn’t limit itself to them. You can also use professional liability insurance to cover lawsuits and accusations of:
Misrepresentation
Violation of good faith
Violation of fair dealing
Breach of contract
No. Your responsibility for environmental damage falls out of the scope of professional liability insurance. Pollution liability insurance will take care of this exposure for you.
The independent contractor will surely have a solar installation insurance package with a professional liability policy. Ask them to add you as an additional insured. This way, their insurance will also cover you if issues arise during and after the project.
The use of solar panels, wind turbines, or any other equipment for a renewable energy project can affect the environment and wildlife.
Pollution liability insurance must be part of your renewable energy business insurance package. This will take care of environmental liability as a result of negligence or mistakes committed by your business, its employees, and subcontractors.
Here are some situations where pollution liability insurance can cover your renewable energy business:
Defective solar panels were improperly dumped to an open area
Your wind turbine generator exploded. It caused a wildfire and left debris
A geothermal reservoir experienced structural failure. This flooded the surrounding area and killed wildlife
Pollution liability insurance will cover the following costs if authorities, civil groups, and individuals file a lawsuit for environmental damage against your business:
Legal expenses
Public relations
Debris removal
Environmental restitution
Medical treatments if third parties got injured due to the pollution your business allegedly caused
Don’t forget about cyber risks. Your renewable energy business might be a victim of data breach, malware, ransomware, denial-of-service, and other cyber attacks.
Taking care of these exposures is cyber liability insurance. Cyber liability insurance will help you cover legal expenses, public relations, lost income, professional services, and credit monitoring if a covered peril happens.
Yes. Cyber liability insurance comes with an electronic data loss coverage. This will cover the cost of recovering OpenWind, Windographer, PV-F Chart, and other software as well as important files that got lost or damaged after a data breach or any other covered peril happened.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | The Hartford | |
|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $300,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $25,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Included |
| Accounts receivable | Excluded | Excluded | Included |
| Money and securities | Excluded | $2,500 | Included |
| Lock and keys | Excluded | $2,500 | Included |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Included |
| Inland marine insurance floater | Excluded | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | Excluded |
A renewable energy business can’t run without buildings, facilities, and structures. And so, aside from liability risks, you also face property risks. What takes care of these is the commercial property policy of your renewables insurance package.
Use the table above to see which company offers the best commercial property insurance.
Commercial property insurance will allow you to recover financial losses and cover repair or reconstruction expenses if the buildings, facilities, and structures get damaged or destroyed by:
Fire
Theft
Vandalism
Riot
Civil commotion
Lightning
Weather
Impact
Falling objects
Sinkhole collapse
Volcanic action
Aircraft
Vehicle
The answer is no. War or terrorism is usually excluded in the language of commercial property insurance. So are earthquakes, floods, and mudslides. Ask the insurance company if they have endorsements for commercial property insurance that cover these exposures.
Commercial property insurance comes with a care, custody, and control exclusion. Therefore, it doesn’t cover the properties of third parties in case a covered peril happens in the premises of your renewable energy business. You can solve this gap by including a CCC endorsement in your commercial property insurance.
Equipment and any other property that’s owned by your renewable energy business and currently in transit isn’t covered by commercial property insurance.
The policy that provides protection instead is inland marine insurance.
This is an endorsement or stand alone coverage that will recover the value of items that got lost or damaged during transit due to theft, vandalism, upset, vehicular accident, and other covered perils.
| CoverWallet | NEXT (Best) | The Hartford | |
|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $300,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
A business owner’s policy allows you to bundle general liability insurance and commercial property insurance. That said, it helps you avoid wasting money by purchasing liability coverage and property coverage separately. Use the table above to see which insurance company offers the best business owner’s policy for renewable energy businesses.
Going for a business owner’s policy is better than buying general liability and commercial property insurance separately because you’ll enjoy a 10%-15% discount on premiums.
The business owner’s policy for renewable energy businesses can be added with cyber liability coverage, hired/non-owned auto liability coverage, inland marine coverage, and business equipment coverage.
To run a successful renewable energy business, you are going to need to create a renewable energy team drawn from a pool of specialists. That essentially elevates your business status to an employer, which unfortunately attracts its own set of risks.
An insider tip would be to have your provider of choice include employment practices liability insurance (EPLI) as part of your workers' compensation insurance.
The EPLI offers your renewable energy business protection against employee-related lawsuits. This means that if an employee were to sue you for anything from sexual harassment, wrongful termination, or discrimination at the workplace, the policy would cover the cost of the lawsuit and any resulting judgments.
There’s no need to get workers' compensation insurance if you get approval from the state to self-insure. If the opposite is true, then you still need to get a workers' compensation policy.
To cover the trucks, cars, and vans you use to dispense your duties, you want to get a commercial auto policy. A comprehensive commercial auto policy will:
Cover the medical treatment of third parties who sustained injuries in an accident your commercial vehicle caused
Cover the medical treatment of the driver and passengers of your commercial vehicle
Cover the repair or replacement of the commercial vehicle’s parts in case of damage as a result of fire, theft, collision, weather, and other covered perils
Cover the repair or replacement of trailers and other attachments to the commercial vehicle
Also referred to as course of construction insurance, this product helps protect any installation that you take part in as a renewable energy business. If, for instance, you were installing wind turbines and these were affected by extreme weather, the carrier would offer you compensation for any damage. Essentially, the builder's risk policy protects your materials, supplies, and any equipment or inventory you might have on-site.
Umbrella liability insurance will help if a claim is too costly. If your professional liability insurance or general liability insurance lacks the necessary funds to fully cover a claim, umbrella liability insurance will provide additional coverage so that you don’t cover any excess costs. You purchase this insurance in $1 million increments.
As we close off the discussion on what insurance products you want as part of your renewable energy insurance package, it is important to point out that you want to stay vigilant about the exclusions in your policies. Discuss with your carrier what risks will not be covered within the different policies that you purchase.
A major one to check out for is the "care, custody, and control" exclusion. This means that any tools, equipment, or any other property that third parties entrust to you aren’t covered unless an endorsement is purchased.
Another area of concern is the coverage gaps present when it comes to hired services. In your case, these would be subcontractors you've brought on in a project. Some carriers will not cover any harm that comes to these subcontractors, any damage they cause, or any other claims filed against them.
No. As already evident by its name, renewable energy insurance doesn’t cover oil and gas activities. The inclusions are tailored to risks unique in the design, construction, and installation of wind power plants, solar power plants, and other related businesses. You need to purchase separate oil and gas insurance for coverage to apply.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $190 | $2,280 | $0-$500 |
| Professional liability insurance | $210 | $2,520 | $0-$500 |
| Commercial property insurance | $230 | $2,760 | $1,000-$2,500 |
| Business owner’s policy | $300 | $3,600 | $500-$1,000 |
| Workers compensation insurance | $260 | $3,120 | $2,000-$5,000 |
| Cyber liability insurance | $215 | $2,580 | $1,000 |
| Commercial auto insurance | $200 | $2,400 | $1,000 |
| Umbrella liability insurance | $195 | $2,340 | $500-$1,000 |
| Builders risk insurance | Depends on the value of the property to be covered | Depends on the value of the property to be covered | $500-$1,000 |
| Inland marine insurance | Depends on the value of the property to be covered | Depends on the value of the property to be covered | $500-$1,000 |
The average renewable energy insurance cost is $190 per month or $2,280 per year for a $1 million general liability policy. There are a few factors that will determine how much you pay. This includes:
Location of your renewable energy business
Scope of projects undertaken
Claims history
Past losses and loss trends
Type and amount of coverage purchased
Here's a list of the best renewable energy insurance companies in the market. Take a look at it to know their selling points and the cost of their $1 million general liability insurance:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $70 | $840 | Best overall; Fastest general liability insurance for renewable energy businesses |
| CoverWallet | $90 | $1,080 | Comparing insurance quotes for renewable energy businesses online |
| Tivly | $105 | $1,260 | Comparing renewable energy insurance quotes over the phone |
| Travelers | $115 | $1,380 | Inland marine insurance for renewable energy businesses |
| The Hartford | $125 | $1,500 | Umbrella liability insurance |
Get all the best quotes from leading providers in a click of a button!
Whether you are a solar start-up or a listed fuel cell company, it's evident that you simply cannot afford to sideline renewable energy insurance. But identifying the need for said insurance is only the first step. You've got to also zero in on the renewable energy insurance company to partner with.
Your individual business needs should be your guiding light when shopping for your renewable energy insurance provider.
If you have an appetite for ambitious renewable energy projects, you should shop for an insurer with good financial standing.
If you are working with a constrained budget, you ought to zero in on renewable energy insurance companies that offer low premiums while still providing precise protection.
To aid in your search, here's a list of the best renewable energy insurance companies for your consideration. Read some of the reviews below to know their pros, cons, and cost of a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for renewable energy businesses
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT doesn’t have a renewable energy insurance package. However, you can get covered through its generic coverage for manufacturing businesses that offer the following:
$1 million-$2 million general liability insurance
$300,000 commercial property insurance
$1 million professional liability insurance
Workers compensation insurance
NEXT can provide an online quote. However, it might refer you to its partner, Tivly, if your business profile is poor.
Best for: Best overall; Fastest general liability insurance for renewable energy businesses
Average cost: $70 per month
Our rating: 10/10
No hidden charges
Cancel your coverage anytime
Compare renewable energy insurance quotes online
Easy online policy management
Not an insurance company but an insurance broker
CoverWallet will cover you through its power and communication lines insurance package. Since this company is just a broker, the policies you’ll get will come from third parties.
Coverage options include a general liability policy, business owner’s policy, commercial auto, workers comp, and more. CoverWallet allows you to bundle different types of insurance through its custom plan.
Best for: Comparing insurance quotes for renewable energy businesses online
Average cost: $90 per month
Our rating: 10/10
A partner of many reputable insurance companies
Call and compare quotes over the phone
Responsive customer service
You need to call to get a quote
Tivly partners with numerous insurance companies to grant adequate coverage for renewable energy businesses. It doesn't offer a fixed quote. Instead, coverage features will depend entirely on your business profile. That said, call and talk with a Tivly representative to compare quotes and know the specifics of your insurance package.
Best for: Comparing renewable energy insurance quotes over the phone
Average cost: $105 per month
Our rating: 10/10
Solid financials
Allows you to increase limits
Add-on policies are made available
Travelers has a number of online tools and other innovative features that make policy management a breeze
Policies can be canceled at any time, either via email or over the phone
Few discount options
The renewable energy insurance package from Travelers is available to all entities within the niche regardless of the size of the operation. The core products include:
Inland marine coverage sold as a specialty product SolarPak
Commercial general liability
Permanent property and operations coverage
Builder's risk coverage
Unfortunately, this carrier doesn't offer further details on the limits for each of these. Prospective policyholders are encouraged to get in touch via mail or phone call, where they will discuss their needs with an agent. This agent will ask for detailed information on the business before they can present the client with a quote.
Best for: Inland marine insurance for renewable energy businesses
Average cost: $115 per month
Our rating: 9/10
24/7 claims reporting
Specialized claims handlers
Available in 50 states
Experienced claims and legal assistance for favorable outcomes
Customized claims and risk engineering services
Coverage in over 200 countries
Not a BBB-accredited business
The Hartford has emerged as one of the top-rated carriers in the renewable energy insurance niche. When it comes to the latter, The Hartford has a number of focus areas. These include:
Power generation and utilities
Renewables like geothermal and biomass
Midstream, including natural gas processors and pipeline operators
Upstream
Mineral mining
However, the policy explicitly excludes the following:
Long haul transportation of tools, equipment, and inventory
Offshore driven operations
Wastewater and hazardous waste hauling
At The Hartford, policyholders can expect tailored renewable energy business insurance coverage. Options available to you include:
Commercial auto which includes an upset and overturn extension to cover any cleanup from an upset or spilled product during renewable energy business-related activities. Additionally, employees are considered to be additional insureds if they use their personal vehicles in any project-related activities
General liability coverage which can include a per-project or per-location aggregate limit. You can also request to have blanket additional insured coverage and a time element pollution endorsement
Workers' compensation coverage that's essentially a broad form endorsement covering any claims from employees
Commercial umbrella coverage with an up to $15 million policy limit.
Best for: Umbrella liability insurance
Average cost: $125 per month
Our rating: 8/10
1 / 5
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.
1 / 5
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
1 / 5
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.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
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!
Not all those who wander are lost.
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