If you are a small business owner and you work within the renewable energy sector, you may be wondering what kind of insurance you need. It can be very confusing–commercial property insurance, or renewable energy insurance? Which is better? What do they cover?
This is a guide to the basics of both types of coverage, so you can better understand what to expect with each kind of policy.
Commercial Property Insurance
Commercial property insurance is covers any property that you rent, lease, or own. It covers the structures themselves, as well as the interior contents, signage, and even electronic data and accounting records.
This kind of coverage should be carried by anyone who owns commercial property or rents it out. It can provide a safety net in the event of damage by storms, fire, or accidents. Any company with a property exposure, from retailers to manufacturers, should carry this type of insurance.
Renewable Energy Insurance
If you have a company that operates within the energy sector, such as:
Wind power generators;
Solar power generators;
Biodiesel producers; and
Ethanol producers
Then a renewable energy insurance policy will address the unique issues you face within the industry and will fill in the gaps left by commercial property coverage. In reality, renewable energy insurance simply extends the coverage offered by a commercial insurance program to incorporate additional coverage for the exposures unique to the renewable energy industry.
Renewable energy coverage provides a range of benefits for small businesses, including:
Property damage due to fire, lightning strikes, high winds and other perils;
Equipment breakdown repair, which is critically important in this sector;
Business interruption coverage to replace lost income and pay extra expenses until damaged property and equipment is repaired and put back into service;
Workers compensation claims adjusted by professionals that understand your business issues;
Pollution or environmental impairment liability coverage, especially necessary in the biofuels industry;
Liability coverage that meets your contractual requirements with power transmission and distribution companies; and
Umbrella coverage to supplement your regular liability limits.
As you can see, a insurance program that is tailored to the renewable energy industry will cover the myriad issues that you may face, from the damage resulting from a single lightning strike on a wind turbine to the pollution damage caused to local waterways from an ethanol plant.
Which kind of coverage do I need?
In a word, both. You will need both kinds of coverage to adequately protect your company from all the many issues you will face, both as a commercial property owner and as a company that produces renewable energy. Many small businesses try to cut corners and carry coverage that is not customized to your needs, but that leaves you woefully underinsured and exposed to many kinds of dangers in the event of an emergency.
A specialized carrier can help you find a cost-effective yet comprehensive insurance product that will protect your company from every angle.