Protecting your renewable energy project
When starting a new project of any type, protecting yourself and the project from concept through to completion should be a priority. There can be many occasions where your project will be vulnerable, from sole reliance on the supply chain to meeting deadlines for contractual and funder insurance requirements.
Renewable energy (RE) projects in that respect are no different from any other project; however, they do have a number of unique complexities. Risks at all stages need to be considered, from early planning, through to construction, completion and hand-over, including;
- environmental hazards,
- equipment damage,
- financial risks,
- profit loss,
- health risks; and,
- site management.
Even with the best of intentions, and the most seasoned of project managers, things can go wrong. Risk management is a key aspect of all construction projects. Whether this is your first project, or if you are an experienced investor, mitigating risks and securing suitable insurance cover is a priority. But, as projects are increasingly complex, with many stakeholders, how can you control risks and keep them to a minimum?
The solution? An Owner Controlled Insurance Programme (OCIP)
So, you have an answer, OCIP, but what is it and how does it work? The trait that makes this such a flexible and durable solution is that is it not one insurance policy, but a collection of policies. These policies can all be tailored to suit your RE project. An OCIP cover can include;
- contractor’s all risk,
- delay in start-up,
- public and employer liability,
- directors and officers liability; and,
- first year operational policies.
There are more covers available and, depending on your project, various policy extensions can be applied.
The greatest aspect of an OCIP is the level of control. With a single point of contact for all risk management and insurance requirements, there are few aspects of the RE project which are exposed to your third parties own insurance policies.
With OCIP, you can benefit from:
bespoke project policy protection. Options include; cover project specific financial exposures, such as profit loss or delay in start-up;
potential for significant premium savings via “bulk buying” of insurance covers;
- have set premium costings for the entire duration of the project;
- enjoy non-cancellable cover;
- coverage during the transition between construction and commercial operation phases;
- potentially reduced administration time and enhanced overall project performance;
- control over the choice of insurers and reinsurers, ensuring first-class market security;
- having control over all insurance policies; and,
- controlling all claims settlements, to ensure rapid reinstatements.
When broken down, an OCIP could be all the cover you need to ensure your project is successfully completed.
RENEWABLE ENERGY INSURANCE
The unique complexities and challenges of the renewable energy industry means it can be difficult to find insurers to provide the right level of insurance required to protect your business. Find out how Marsh Commercial can help.