Top 5 Types of Solar Insurance 

Learn how to choose the ideal option for you, a solar energy professional, or for your client
Top 5 Types of Solar Insurance
Choosing the wrong coverage can have serious consequences. Photo: Mauro Filho/Disclosure

Choosing the wrong coverage can have serious consequences. For a family, it could mean losing a lifetime investment in a matter of seconds. 

For integrators, an error in the installation or maintenance of the photovoltaic system can result in high costs and harm the company's financial health if the necessary protection is not provided. 

Therefore, in this article, we will help you identify and choose the solar insurance that best meets your needs and those of your customers. Keep reading! 

Civil Liability Insurance (RC) 

Civil Liability Insurance is insurance designed to protect integrators during installation and maintenance of photovoltaic systems. It provides coverage for damage to third-party property and accidents involving field team , whether they are contracted or outsourced employees.

Its main difference is that it covers both new installations as well as maintenance or after-sales services, ensuring that the professional is always protected when carrying out services on the client's property. 

Who is responsible?

For example, if during installation or maintenance a solar falls and damages a customer’s or a neighbor’s car, Liability Insurance will cover the damage to the vehicle. Similarly, if a team member suffers an accident that results in permanent disability or death, the insurance will also provide additional protection for the employer. 

Engineering Risk Insurance (RE) 

Another insurance used by integrators in installation and assembly period of photovoltaic systems is the Engineering Risk. It covers damage to the photovoltaic generator kit, to third parties and to the property of the end customer during the work. 

This means that if a tool falls on the modules, if the plates fall off the truck during unloading, if someone steals the equipment from the job site or another incident occurs that is covered in the coverage table during the installation, the integrator will be covered. 

Although Engineering Risk Insurance may seem similar to Civil Liability Insurance, RE does not extend to maintenance and repairs. Furthermore, in the RE it is necessary to take out a policy for each installation, while in RC the integrator acquires a single annual policy that covers all installations and maintenance throughout the year. 

One tip for choosing between them is to analyze the quantity and complexity of the works served by the integrator. For example, if there is not a large demand for plants to be installed or repaired, it may be more advantageous to hire the RE, since its hiring is individual. 

On the other hand, if the integrator already has a high demand for annual installations, it will be more advantageous to opt for RC, which offers protection for all services for one year. 

Solar insurance brings benefits to businesses and consumers

In addition to the number of plants, it is essential to consider the degree of difficulty of each installation. If the integrator identifies that he will have to deal with more delicate services, which present a greater risk of accidents, he should opt for RE, because, in addition to protecting third parties and the client's property during the work, It also covers damage to the photovoltaic generator kit, which Civil Liability Insurance does not cover. 

However, it is important to highlight that insurance is complementary; one does not exclude the need for the other. Therefore, hiring both is still the best option for integrators looking for complete coverage, ensuring safety at all stages of the project.

Miscellaneous Risk Insurance for Equipment (RD) and Large Plants 

Miscellaneous Equipment Risk Insurance is ideal for protecting your investment. Final client. It covers various damages to the photovoltaic generator kit after installation, such as windstorms, hail, fire, electrical damage, theft and a series of other unforeseen events that could cause consumers to end up paying more for their energy bill. 

As it is one of the most comprehensive insurance policies on the market, it is often used by integrators as a competitive differential to stand out from competitors and close more and better deals. 

Windstorm and insurance coverage in photovoltaic systems

In addition to serving smaller systems, RD is also indicated to protect large photovoltaic plants in operation, that is, after the installation is completed. Its coverage includes modules, inverters, substations, transformers, structures, trackers and all components that make up the plant. 

Warranty Insurance 

Like other insurance policies, Surety Bonds play a crucial role in the solar energy sector. Their purpose is to: ensure that the contractual requirements and obligations assumed by the integrator are met as agreed with the client. 

For this, it is divided into two main modalities: the first is the Bidder, which becomes mandatory for those who wish to participate in bids. 

The second is the Performer, which is often required by the buyer of the plant. In this case, the investor requests that the integrator take out insurance to guarantee the execution of the contract in accordance with the stipulated . 

Unlike other insurance, The Warranty Insurance does not cover physical damage, but rather the protection of contractual clauses. In this way, if the integrator does not comply with what was agreed, the insurer will compensate the client and charge the integrator. 

As it is a common requirement in large contracts, the Surety Bond becomes an important ally for integrators who want to participate in bids, helping to ensure that clients trust that the work will be delivered as agreed. 

Solar Life Insurance 

Unlike other life insurance, o Solar Life Insurance serves to specifically protect photovoltaic system installers and other employees working in this sector, since this profession combines the two greatest risks of work accidents: height and electricity.

In addition to offering financial security in the event of accidents during the installation and assembly of solar plants, the insurance also covers accidents in general, in addition to working hours. Because it is personalized and only has the coverage necessary to protect integrators, its cost is even lower compared to other life insurance policies. 

He can be hired by integrators, installers, engineers or any employee of your solar energy company, even if outsourced, since the contracts are individual, ed in each person's F. 

Conclusion 

Choosing the right solar energy insurance is essential to ensure peace of mind for both integrators and customers. Therefore, before taking out any insurance, The ideal is to know exactly what is being contracted, as well as analyzing the needs of each project and the coverage offered in the policy. 

In some situations, it may be necessary to hire more than one insurance to ensure protection at every stage of the process.

More articles by Mauro Filho

The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.

Photo by Mauro Filho
Mauro Filho
Founder and CEO of Elétron, the only insurtech in Brazil specialized in solar energy, with more than 400 thousand insured photovoltaic systems. Professor at the School of Business and Insurance and speaker.

An answer

  1. My name is Domingos Gomes Costa, I am a civil engineer, electrician and now I am working in sales of photovoltaic systems.
    I am interested in following the news related to the solar energy system.
    thank you very much….

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