Renewable energy insurance Product overview

Global demand for electricity combined with the desire to reduce CO2 emissions has increased interest in renewable energy technologies. With government targets in the UK of 20% energy consumption from renewable sources by 2020 (and 32% by 2030), investment in this sector is set to rise. These developing technologies bring with them the need for specialist insurance solutions; which is why HSB Engineering Insurance recognise the importance of providing the right insurance covers to protect renewable energy investments.

Renewable energy solutions from HSB Engineering InsuranceHSB Engineering Insurance has developed a range of construction and operational policies to meet the needs of those investing in renewable energy technologies, covering wind turbines, photovoltaic installations, and biomass and anaerobic digestion plants.

Specifically designed with the renewable energy customer in mind, the focus of our covers is on minimising the disruption caused by damage to renewable energy installations.

Our policies cover physical damage (including breakdown and business interruption) during the construction and operational phases of a project. Cover is available for risks throughout the UK and we can also provide inspection services as part of the package.

Construction/installation insuranceOur renewable energy construction and installation insurance provides the following cover options:

− Erection All Risks cover during installation and maintenance period − Delay in Start-Up cover − Own or Hired-In Plant covers − Public Liability cover during erection − Terrorism

Operational risks insuranceOur renewable energy operational risks insurance provides the following cover options:

− Operational All Risks cover, including breakdown − Loss of Revenue cover − Terrorism − Inspection services

Why choose HSB Engineering Insurance?We are a leading specialist provider of construction, engineering and technology insurance and inspection services.

We are a financially strong and stable insurer – rated A++ (Superior) by A.M. Best Company.

Our underwriters and risk engineers have extensive experience in providing insurance cover for renewable energies and are recognised as experts in this field.

Drawing on our vast expertise in the renewable energy sector, we are able to provide insurance products to suit the varied needs of renewable energy producers.

− Policy wordings specifically designed with the renewable energy customer in mind: · Equipment breakdown cover provided as standard · Loss of Revenue covers available on all policies · A broad definition of property wording including substations, transformers, civil works, and rented buildings and their contents

− Extensive underwriting expertise in renewable energy technologies − Cover available across the UK − Access to experienced renewable energy risk engineers − Access to claims handlers and loss adjusters with specialist knowledge of the renewable energy industry − Inspection services, to comply with regulatory obligations, are available in the UK via our network of technically-expert Engineer Surveyors

This document provides an overview of the insurance products available. For full terms and conditions, please refer to the relevant policy wording or contact your local HSB office for more information.

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PhotovoltaicPhotovoltaic (PV) production, currently the fastest growing energy technology worldwide(2), turns solar radiation directly into electrical current.

Like all renewable energy technologies, there are significant risks which can impact and result in a loss. The most common causes of loss or damage to PV installations are:

− Theft or attempted theft of panels − Damage from weather events such as windstorm or hail − Impact damage − Failure of trackers − Failure of substation/electrical equipment − Fire − Flood

HSB Engineering Insurance provides cover for PV installations that are not only ground mounted, but also fitted to the roofs or walls of buildings.

WindWind power has been harnessed by mankind for thousands of years and is now a major energy source worldwide. The UK‘s 9,000+ wind turbines produce 20.9GW of electricity, accounting for around 18% of energy demand at present(1).

HSB Engineering Insurance has vast experience of insuring wind turbine risks. Our onshore wind farm insurance covers are designed to meet the unique risk exposures that wind turbines present:

− Windstorm or lightning damage to blades − Failure of gearbox or generator − Fire in the turbine nacelle − Fire/explosion of substation transformer − Failure of windings

HSB Engineering Insurance provides construction and operational covers for wind energy risks ranging from 500Kw to 3Mw output wind farm installations.

Turbine blade shattered by lightningDuring a storm, lightning struck the blade of the turbine causing it to shatter. As a result of the damage, the wind turbine was unable to export electricity to the wind park transformer for onward exportation to the grid. HSB were able to source a spare blade and arrange carriage, thereby limiting the period the wind turbine was inoperable.

Type of equipment: Wind turbine generatorAge of equipment: 2 years old

Total claim paid: £52,024 property damage £11,547 loss of revenue

Strong winds damage PV panelsDue to a failure in a tracker orientation system, the PV panels at the site were unable to fully turn themselves over into the defensive position to provide protection from strong winds and hail. The failure resulted in the panels being vulnerableto extreme weather and the associated cost of damage was payable under the policy.

Type of equipment: Ground-mounted photovoltaic panelsAge of equipment: 1 year old

Total claim paid: £23,254 material damage

(1) Wind energy in Europe in 2018 - Trends and statistics (February 2019)(2) Renewables 2018 - International Energy Agency

BiomassAs Great Britain’s second biggest source of renewable electricity, biomass is an increasingly important energy source; accounting for 7-9% of Britain’s electricity supply(3). The process uses organic material (such as wood pellets and chips, for example) as energy sources to produce heat or electricity. With high levels of investment required to cover construction and operational costs, managing biomass risks has become increasingly important.

There are a number of processes which can be used to convert the material into energy sources. Pyrolysis and wood gasification use heat and pressure, in an oxygen free environment, to produce biogas from carbon rich material. These processes produce particular risk exposures such as:

− Fire − Explosion of boilers or pressure vessels − Breakdown/failure of gas engines or steam turbines − Dust explosion − Spontaneous combustion of fuel stock

HSB Engineering Insurance provides installation and operational covers for a wide range of biomass technologies.

Anaerobic digestionThere are more than 630 anaerobic digestion plants across the UK(4); a significant increase on the 100 plants that were in operation in 2013. Anaerobic digestion uses bacteria to break down organic material in order to produce the biogas, methane. Materials utilised include animal waste, sewage, feed crops, waste food and green waste.

Particular risks applying to anaerobic digestion plants include:

− Fire − Gas explosion\collapse implosion of pressure vessels − Tank failure\leakage of gas or digestate − Breakdown of mechanical parts − Flood

HSB Engineering Insurance provides construction and optional covers for a wide range of anaerobic digestion installations.

Failure of refractory wall caused fireA failure of the refractory wall resulted in a build up of wood pellets. These caught fire, causing the boiler floor support to warp and collapse.

Type of equipment: Biomass boiler fuelled by wood pelletsAge of equipment: 2 years old

Total claim paid: £27,500 material damage £13,750 loss of revenue

High winds destroy two biomass tank roofs Strong winds caused a bio digester and a slurry storage lagoon to lose their roofs, both of which had to be replaced.

Type of equipment: Bio digester and slurry storage lagoonAge of equipment: 2 years old

Total claim paid: £246,294 material damage

(3) Biomass UK (June 2019)(4) Anaerobic Digestion and Bioresources Association (April 2019)

HSB Engineering Insurance Limited Registered in England and Wales: 02396114, New London House, 6 London Street, London EC3R 7LP. Registered as a branch in Ireland: 906020. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

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