The renewable energy sector is truly global, encompassing a wide range of technologies, deployed in all environments. From prototypical offshore wind projects to more familiar solar PV plants and from ‘frontier’ territories to those with long-established power grids, our clients must manage risks both familiar and novel.
‘Conventional’ property, liability and revenue risks now vie with political risks and cyber threats.
Furthermore, as the industry grows and facilities age, most notably wind farms and solar photovoltaic plants, owners will need to focus increasingly on asset management and maintenance issues.
The long-term financial viability of the assets will be determined increasingly by choices around maintenance regimes, operation and maintenance (O&M) contractor selection and, where feasible, ‘re-powering’ or upgrading of facilities.
With the growing scale and complexity of the sector also come more sophisticated risk management requirements and options. Our renewable energy specialists can help guide your company through this evolving risk landscape.
WHAT WE DO
We provide insurance advisory and broking services to developers, asset owners, contractors and other stakeholders involved in the development, construction and operation of renewable energy assets.
We are able to support our clients at any point in the life-cycle of their projects. This may be from pre-financial close insurance advisory services to end-of-life decommissioning and any point in between.
Insurance solutions for the renewable energy industry share elements common to conventional property risks whilst having evolved to accommodate sector-specific risk characteristics and client requirements.
Our renewable energy team is centred on individuals whose expertise and experience reflects a similar balance.
This includes extensive sector experience in ‘mainstream’ power, energy and construction sectors prior to focusing on renewable energy, a certified renewable energy project finance professional and a specialist risk engineer.
In combination, we are confident that we have the requisite knowledge and resources to support our clients as they help reshape the energy generation landscape.
What isn’t covered?
Coverage for losses caused by faulty design or manufacture is tightly defined and different levels of cover may be offered depending on the technology. This is not specific to renewable energy risks but insurers in the sector pay particular attention to the matter given the pace of technology development.
Series loss clauses’ are also commonly applied to plants which employ large numbers of identical pieces of equipment (wind and solar plants especially). A common design error or faulty batch of component parts could give rise to multiple losses. The clause limits the size and number of claims that may be payable under such circumstances.
Our policy wording otherwise contains similar exclusions and coverage restrictions to those found in ‘mainstream’ construction and property wordings (e.g. those relating to war or radioactive contamination).
It should also be remembered that coverage under most insurance policies, including those within the renewable energy sector, is triggered by an event that causes physical loss or damage and, in the case of liability policies, also bodily injury.
The renewable energy industry is still a relatively young market in the power sector. Many risks and technologies are new and developing fast. Having a broker whose knowledge is at the forefront of these developments will help clients get the best risk transfer solutions from the insurance market
JLT have the ability to analyse large quantities of client data to produce meaningful insights to find the best programme in the market
As a global broker with local relationships, we understand how to navigate between cultural differences around the world
Clients will have access to our specialists 24/7
We strive to recruit the best talent and provide an environment that encourages innovation and creativity
Our approach to claims resolution is proactive. We are actively involved from first advice through to final settlement providing high quality technical claims services tailored to our clients requirements. We work as your advocates from day one, engaging collaboratively with key stakeholders to ensure indemnity is maximised under the policy.
Managing flood exposure
Our client was developing a large energy recovery facility adjacent to a residential area. The low profile design required part of the plant to be installed below ground level necessitating major excavation works in difficult ground conditions. The open excavation posed a significant flood exposure whilst the preferred construction methodology had its own inherent risks.
JLT facilitated close liaison between client and insurer engineers ensuring that insurers were able to monitor and assess project progress and agree suitable risk mitigation measures, particularly in relation to flood. A risk engineering report was commissioned close to plant commissioning to assist placement of subsequent operational phase insurances.
Creating a master programme
Our client had made separate insurance arrangements for a growing portfolio of international wind and solar assets. JLT undertook an analysis of the existing arrangements and recommended consolidation into a master programme. All assets were able to benefit from ‘best available’ policy coverage and competitive pricing whilst simplifying the administrative burden on the client.
Insurers were selected on the basis of territorial capabilities, claims servicing and the ability to offer competitive pricing. The programme provided the flexibility for new projects to be easily integrated into it in the future providing the client with clarity of cover and certainty of premiums.
We understand the success of any insurance programme is how it reacts in the event of a claim. Our in-house claims team has the experience, resources and industry knowledge to manage claims of any size or complexity.
Our claims team work is an integral part of our broking and servicing teams, as one unit for the maximum benefit of our clients. For any disputed claims and all property claims, we will work with you to achieve a satisfactory resolution.
Other claims services can include:
Providing access to surveyors, lawyers and engineers
Advising on claims strategy to create a level playing field when dealing with your insurer
Investigating, measuring and preparing claims
Negotiating and settling claims
Intervening to prevent lengthy disputes and spiralling legal costs
Planning responses to potential major losses.
JLT also offers a wholly owned specialist claims consultancy practice, Echelon. The team is made up of specialist resources such as forensic accountants, surveyors, engineers or lawyers to provide impartial arbitration between parties.