Insurance for coal fired power stations

Coal fired power stations still play a vital role in electricity generation worldwide even though there is a continuing trend to move to renewable and lower carbon sources of electricity generation.

Over a third of global electricity generation is sourced from coal and the IEA estimates a quarter will still be sourced from coal in 2040.

The technology used in coal fired power stations continues to evolve with emphasis on improving plant efficiencies, typically through higher boiler temperatures and pressures, and reducing pollutant emissions.

There are also further projects looking at how to make carbon capture and storage technology (CCS) commercially viable for these types of plants.

We can provide power insurance and risk management solutions for coal fired power stations. Our team of experts have extensive experience with coal generation assets and will work with you to
find a bespoke solution including coverage for coal dust explosions, legacy pollution and natural catastrophes.


Coal Fired Power station

We have extensive experience with coal generation assets. Characteristics of the sector technologies and typical challenges associated with insurance advisory and placements solutions include:

  • Error in design
  • Terrorism
  • Ageing plant (wear and tear)
  • Natural catastrophe (earthquake, flood, windstorm)
  • Fire
  • Machinery breakdown
  • Boiler explosion
  • Electrical breakdown
  • Operating regime conveyor belt breakdown
Coal Fired Power station
  • Dust explosion
  • Boiler Explosion
  • Cooling tower collapse
  • Legacy pollution
  • Fuel quality and type
  • Fly ash build up
  • Coal pulverisation
  • Storage – spontaneous combustion
  • Transportation (inland and marine).

Insurance solutions

Core insurance products that can be provided across the whole project development and operational cycle are:

covers physical damage to cargo whilst in transit by sea, typically from manufacturers or suppliers facilities

covers lost revenue arising from delayed commissioning of a project itself caused by delayed delivery of project equipment following loss of marine cargo

covers physical damage to the project works

covers lost revenue arising from delayed commissioning of a project itself caused by a physical damage loss to the project works

covers physical damage to the operational asset

covers lost revenue arising from a physical damage loss to the operational asset

cover legal liability arising from damage to third party property or injury to third parties arising from a physical damage loss at the project whilst under construction or the operational asset

covers physical damage and any related revenue loss to either during the construction or operational phase caused by an act of sabotage or terrorism

Supplementary coverages include:

covers legal liability for clean-up, habitat restoration, bodily injury and property damage arising from pollution

can cover arrange of perils such as expropriation, political violence inconvertibility of local currencies and even acts of terrorism and war

cover purchased by manufacturers of equipment or installers of renewable energy systems to back-up warranties and commitments that they in turn provide to buyers and customers

Our clients also receive the benefit of broad, lender-compliant, policy wording which we regularly review and update to ensure that we continue to offer the broadest cover generally available in the market.

The policy is designed to encompass all of the core insurance coverages associated with the project development and operational cycle noted above.


Coal Fired station

JLT has extensive international experience of providing insurance placement and advisory services to developers, asset owners and other key stakeholders, such as project financiers.

Our clients frequently engage us during the development phases of a project.

Coal Fired station

This ensures that we can provide guidance on insurance programme design well in advance of placement and take full account of insurance requirements that may be specified by lenders and other key stakeholders.

This also provides the opportunity to challenge on behalf of our clients any especially onerous requirements that such stakeholders may seek to impose.

Claims management

In the unfortunate event of a loss, we have a specialist team of claims personnel who have deep experience in dealing with large and complex claims across every segment of the power generation industry.

We act proactively to manage the claims process and the other stakeholders involved such as lead underwriters, follow markets and loss adjusters. The team has heavy involvement in the claims process whether this is regarding interim payments, the appointment of specialist experts or site visits.

Our claims team have strong relationships with the leading loss adjustors around the world and are able to recommend the best resources to ensure that our clients’ claims issues are managed by people that understand their business.

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