Travelers Redesigns Solar Insurance Policy To Meet Growing Demand

Jun. 15--The Travelers Cos. has broadened its insurance coverage for a growing number of commercial solar farms, and smaller-scale use of solar panels on homes.

Travelers has provided insurance for solar- and wind-energy technology for about 10 years, and aspects of previous policies are included in the new policy with additional coverage.

The SolarPak was designed to bridge what had been segmented coverage for solar energy -- just the manufacture of panels, just the transportation or just the installation. The new policy was designed to cover the entire timeline of a solar farm project: from the day a site is designated to the transportation of panels to the site, and installation and, finally, the stage when a solar farm is functioning and converting sunshine into electricity.

The process of finding an appropriate site for a commercial solar farm takes time and research. Weather-data equipment, for example, is usually hauled to the site to gauge sunlight. The SolarPak policy could cover that weather equipment along with a builder's risk when panels are installed or theft once the panels are up and running.

Part of the reason for rewriting policies for solar energy, and to provide coverage where gaps existed, is rapid growth in the industry. The federal American Recovery and Reinvestment Act made $80 billion available last year for "clean energy investments." In April, the Solar Energy Industries Association released its annual report showing that overall solar capacity grew by 37 percent, and doubling the residential market. Revenues for the solar industry were $4 billion last year. Connecticut ranked ninth among states for new solar capacity added last year, behind Massachusetts, according to the solar association.

"I think we all expect it to just keep growing," said Lauren Berry, chief business development officer at Travelers Inland Marine, a subsidiary that handles all the solar policies. "You see traditional energy companies diversifying into renewable, or creating divisions for renewable. ... You see, let's say an erecting operation is now getting into wind turbines ... You see roofers getting into solar panels."

A leading cause for claims in California, which led all other states in solar expansion last year, was theft. The materials used in photovoltaic panels -- the ones that convert sunshine into electricity -- are a hot commodity, Berry said. Travelers has a special investigative unit that works exclusively on how to reduce the risk of theft of solar-panel materials.

For homeowners, insurance for solar panels would be a separate add-on to cover the panels, which range in value from $10,000 to $15,000.

Berry said, "With the increased interest in power generation technologies that are considered 'clean,' the availability of renewable energy financial incentives and continuous innovation in the multiple applications of solar technology, the SolarPak coverage may help to open up new business opportunities for our network of independent agents and brokers."

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