Solar PPA Insurance

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Solar PPA coverage provides comprehensive property and casualty coverage for solar installations.  

This policy is activated with Transit coverage when project components begin their journey to the construction site, initiates the Installation All-Risk coverage upon commencement of work at the site, remains in full force as the panels are tested and commissioned, and initiates an Operating All-Risk policy when commercial operations begin. 

No coverage gaps exist during these transitions, so no claim jurisdiction disputes can arise.

A typical policy includes full non-warranty Mechanical and Electrical Breakdown coverage. It also includes time-related exposure protection against lost power production revenue due to Transit delays, lost revenue due to Construction delays, and Operational revenue losses (Business Interruption Coverage).

PPA insurance programs through Hartford and Travelers offer standard Property deductibles beginning at $10,000 for Physical Damage and 20 days for Business Interruption. 

Higher deductibles, up to $1,000,000 and 60 days and higher, are available and often preferred by clients and their lenders for large projects. 

High-risk area” Lightning, Flood, and Earthquake deductibles are 5% of the value of the actual loss amount (not the total insured value), subject to a minimum of $100,000 or the policy deductible, whichever is higher.  Outside of these areas, full project value coverage is standard.  Depending on the project location, higher specific deductibles may be required for certain perils, such as windstorms in hurricane-prone areas.

A fundamental feature of PPA Insurance and a key to its widespread success is its flexibility in structuring coverages to meet the needs of the insured. Policies can be tailored to each project’s coverage requirements and contractual insurance obligations.