Gallagher has played a key role in the insurance coverage renewal of an energy start-up, thanks to the use of virtual technology.
The business seeking renewal was a green energy company that extracts gas from landfills and operates ground-mounted solar farms.
The start-up’s insurer wanted to reduce the capacity coverage it was offering for physical risks and exposure liability, which reflected the prevailing caution in the current market.
“Most insurers won’t give any consideration to insuring landfill sites due to the perceived risks,” said Bronia Henty-Smith, Adelaide team leader at Gallagher.
In a blog, Gallagher outlined that the insurer’s underwriter had never met anyone in the company and had limited understanding of the safety measures they had put in place to prevent fire hazards in landfills.
“If an insurer doesn’t confidently understand our client’s business, they will either decline to quote or provide unrealistic pricing to remove themselves from the race,” Henty-Smith said.
After reviewing the existing insurance program, Gallagher directed a comprehensive risk information session with the company’s engineer to explain the technicalities of their risk management systems and provide a detailed risk profile to potential insurers via online Zoom meetings.
As result of what Gallagher calls a “collaborative and multi-insurer engagement process,” one insurer offered to split 50% of the property cover with the incumbent insurer and take on all required liability cover, meeting the pre-existing shortfall in capacity coverage.
“Without comprehensive knowledge of a client’s business it is impossible to sell it as a potential customer to an insurer,” says Henty-Smith. “The Zoom information session and follow-up provided a detailed view of the company’s operations and risk management protocols.”
