Global insurance broker Marsh has announced the launch of a new renewable energy facility that provides dedicated insurance capacity for mid-scale solar and battery energy storage system (BESS) risks in the US and Canada.
Renewable energy companies have found it challenging to find sufficient capacity for smaller standalone solar and BESS projects in a tight enough time frame to satisfy developers, consultants and financiers operating in the distributed energy resource market, according to Marsh.
The new facility, developed by Marsh Specialty’s renewable energy practice, provides expedited policy issuance and uniform terms and conditions through forms customized for mid-scale solar and BESS projects, defined as projects with capacity under 50-megawatts.
The facility is backed by a panel of A-rated carriers and offers pre-agreed coverage terms for construction all risk, general liability, and excess liability insurance, either as a package or individual coverages. Clients can purchase replacement cost and business interruption coverage for qualifying projects and up to US$25 million in liability.
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“Mid-scale solar and BESS projects present unique insurance challenges for renewable energy companies as high volumes of projects are being developed on short timelines and traditional underwriting remains largely a lengthy, intensive, manual process,” said Mike Kolodner, US renewable energy practice leader at Marsh Specialty. “As part of our commitment to accelerate the energy transition from fossil fuels to renewables, this new dedicated facility will enable us to bind comprehensive coverage for smaller projects within days rather than months, enabling renewable energy companies to keep up with growing demand.”
