Biomass Insurance

Construction all risks insurance is vital during the installation phase of the contract. Construction all risks insurance for biomass plant provides protection against physical damage, theft and breakdown during installation testing and commissioning. Also importantly it can be extended to include advanced loss of revenue should completion of the installation be delayed as result of one of these insured events occurring.

Important underwriting considerations include:-

Type size scale and complexity of the biomass plant and project.
Does the plant represent new technology.
Nature of feedstock as some types are more hazardous than others.
Situation of the contract.

Operational all risk insurance is typically written of an all risks of physical loss or damage basis on either an annual or per project basis. We can tailor the insurance to meet the specific needs of the installation where ever it is situation.

As an owner or end user insurance for biomass plant whilst in operation is vital. Operational all risks insurance for biomass plant provides protection against physical damage, theft and breakdown. An operational policy can be extended to include not only loss of revenue should the biomass plant stop operating as result of one of these insured events occurring but also if a key supplier suffers similar difficulties.

Important underwriting considerations include:-

Type size scale and complexity of the biomass plant.
Does the plant represent new technology.
Nature of security.
Types of feedstock as some types are more hazardous than others.
Source of feedstock and where suppliers are situated.
Situation of the biomass plant facility.

Operational all risks is typically written of an all risks of physical loss or damage basis on either an annual or per project basis. We can tailor the insurance to meet the specific needs of the plant where ever it is situation.

Environmental liability insurance covers the cost of restoring damage caused by environmental accidents, such as pollution of land, water, air, and biodiversity damage.

During installation and operation of biomass plant you will face various scenarios in which your activities may cause environmental damage.  For example, damage caused by:

• Explosion
• Contaminated soil disposal.
• Accidental release of fuel oil chemicals and toxic gases.
• Dust arising from construction work

Recent UK and EU legislation has significantly increased the potential costs of remediating damage caused.  Environmental issues need to be dealt with rapidly.

What does it cover?

Environmental liability insurance covers the cost of repairing environmental damage arising from both common law claims, and claims arising from UK and EU legislation.

• Both sudden pollution and gradual pollution
• First party (own site) clean up costs imposed by regulatory authorities
• Third party liability including impact on property value
• Nuisance claims
• Legal costs and expenses

Invariably biomass plant will need to be transported from the manufacturer to the site of installation. In many cases the journey time could be significant utilising many different modes of transport. Any problems or delays can have a significant impact on project time lines which in turn can have implications on revenue further down the line.

Marine cargo and transit insurance not only provides insurance for physical damage or loss of biomass plant during transportation but can also be extended to include delay. Also if these events lead to a delay in project completion we can arrange insurance to cover the anticipated loss of revenue.

Important underwriting considerations include:-

• Size and value of plant
• Length and profile of journey
• Replacement plant lead in times
• Loss mitigation procedures following an insured event
• Contractual review

Due to the complexity of some biomass plant underwriters will focus extensively on the ability to replace plant that is lost during transit.

If you are an organisation that has invested into energy saving technology it’s possible to insure the shortfall in energy savings realised each year.

Sitting aside more conventional types of insurance such damage, breakdown and loss or revenue energy efficiency insurance is designed for all types of energy efficiency systems including:-

• LED lighting
• Biomass boiler optimisation
• Solar panels

Whether you are owner/end user energy service companies or banks/funder energy efficiency insurer can help you reduce the financial risk associated with your investment.

Injury to third parties and damage to surrounding properties during either the installation or operation of biomass plant is an important consideration. During the very nature of biomass plant the risks can be high and underwriters will want to have a clear understanding of the steps undertaken to mitigate these exposure.

Important underwriting considerations include:-

• Type and size of the biomass plant facility or project
• Security
• Nature of surrounding area and country domicile (if applicable)
• Type of feedstock

Also where subcontractors are used during installation it will be important to understand the extent of contractual liability for each party.

Public liability runs alongside either the construction or operational all risks policy and can be arranged with annually or on a contract specific basis.

Product liability insurance covers the cost of compensating anyone who is injured by a faulty product. If you design manufacture or distribute of biomass plant you may be held legally responsible for any injuries to people or damage to property caused by a faulty product. This may be as a result of an underlying defect in the design or the biomass or a failure somewhere on the manufacturing process.

Important underwriting considerations for product liability for biomass plant include:-

• Type of biomass plant
• Development history and results of field testing
• Extent of quality and safety procedures
• Details of any outsourced procedures
• Details of target market and location

To a lesser degree operators/owners of biomass plant may have a product liability exposure if they are able and choose to sell biochar. Depending on the type of biomass biochar may be produced and in many cases can be sold on. In these circumstances product liability insurance should be arranged.