The Renewable Read | August 11, 2021

August 11, 2021

Renewable Energy Property & Project Losses – Coverage Terms & Conditions to Know


Severe Convective Storm is a hot topic for the property market due to the increase in frequency and severity of extreme weather events. Specific to the solar industry, Insurers have taken steps to reduce their exposure to these losses primarily because of adverse loss history associated with hail. Examples of policy terms and conditions that have been modified or added include:

  • Reduction in available limits for Severe Convective Storm, per occurrence and in the aggregate.
  • Minimum and percentage deductibles like those for Named Windstorm
  • Definition of Severe Convective Storm added. Example: Severe Convective Storm means any storm or cluster of storms (non-tropical cycle) that can generate high winds through various phenomena, including Tornadoes, straight-line winds of at least 58 mph, Derechos, Hail, and Lightning. (The definition in the Policy will typically define each of the “phenomena” listed above.)
  • In the case of Solar, coverage is also often accompanied by a Microfracture & Loss of Warranty Endorsement. Typically, these Endorsements limit the ability to claim damage from a covered event unless more than 25% of the cells in each individual solar module contain microfractures.

It is important to be aware of these changes and how it will impact any potential loss recovery and the project’s bottom line.

We thought our readers might also be interested in the progression of hailstorm exposures. Below are three graphs from well-respected insurance resource FM Global, depicting the change in hailstorm hazard from 2009, 2014, and 2018. This increased exposure is having a significant impact on renewable energy infrastructure development.

FM Data Sheet 1-34 Hail Exposure Map – 2009

FM Data Sheet 1-34 Hail Exposure Map – 2014

FM Data Sheet 1-34 Hail Exposure Map – 2018

At Beecher Carlson Property & Energy, we have the resources and experience to assist our clients in managing and insurance their exposures and working through these complex claims and coverages related to the Energy and Renewable space.

Does your current broker have these resources to help guide your business?

Contact Beecher Carlson for more information on how we can help.

Maryann Johnson leads the Property and Energy Claims Practice at Beecher Carlson. Maryann works with our renewable energy clients and large market property clients to manage both domestic and international complex property damage and business interruption claims. This involves proactively managing the loss adjustment process with clients, providing advice and strategic guidance on claim presentations, reviewing and assisting on policy coverage issues, and advocating and negotiating on behalf of clients. Maryann has more than 25 years of industry experience handling multi-million dollar property and energy claims.

Maryann joined Beecher Carlson as the practice leader more than two years ago and was charged with leading the team and developing the practice. Under Maryann’s leadership, the practice has increased its number of advocates and created enhanced processes to better serve Beecher Carlson clients. Maryann’s vision for the practice and her team is to provide high level technical, valued added advocacy to clients and provide the best in class claims consulting.