A new world order with unique insurance needs
Insurance for the construction of power stations, energy facilities and solar fields is a challenge for the insurance industry. In the last few years the demand for sources of renewable energy is on the increase both in Israel and worldwide, asides the use of state of the art technologies and the construction of energy facilities. In this case a standard Contractors All Risks policy
does not provide an adequate solution. In order to obtain optimal insurance cover it is necessary to conduct background work, research and collate in-depth information and based on this groundwork; various extensions and special wordings need to be added to the Contractors All Risks policy to address the unique characteristics of these projects.
Hereunder are several points that illustrate the complexity of arranging insurance for energy facilities and solar fields:
There is a twofold need to firstly insure the construction works of the facility and then arrange property insurance for the completed project. It is important to bear in mind that such structures are not regular buildings but rather huge complexes, quite often in remote locations and exposed to damage both by human elements as well as due to natural perils which can be catastrophic.
Drafting contracts for the execution of works to construct renewal energy power facilities and stations is a complex task, arising from the fact that such contracts are usually executed with foreign entities, in a foreign language with insurance and liability covenants derived from the rules and regulations applicable in other places in the world and this variance needs to be adapted to common practice in Israel.
The task of arranging insurance in such cases involving intrinsic and complex mega-projects by construction companies, contractors and a diverse range of freelancer professionals in various fields of expertise, some local and some foreign, creates the need to define the territorial limits and jurisdiction applicable to the policy in a very clear and precise manner.