Between the Lakes and the Dales
Insurance Coverage for Contracted Power Generation Agreements

Insurance Coverage for Contracted Power Generation Agreements

As the world shifts towards renewable energy, power generation agreements have become increasingly popular. These agreements are contracts between a power producer and a buyer, typically a utility company or an energy trader, where the producer agrees to provide a certain amount of energy at a specified price.

Given the scale and complexity of these agreements, it`s essential to have comprehensive insurance coverage to mitigate potential risks. In this article, we`ll take a closer look at the insurance coverages that should be considered for contracted power generation agreements.

Property Insurance

One of the most crucial insurance covers for contracted power generation agreements is property insurance. This policy provides coverage against losses or damages to property, such as power plants, turbines, and other equipment, caused by various perils, including natural disasters, fires, and explosions.

The policy should cover not just the equipment and machinery but also the adjacent infrastructure, including transmission lines, substations, and control rooms. It`s crucial to ensure that the policy covers any potential business interruptions caused by physical damage to the power generation facility.

Liability Insurance

Liability insurance is an essential insurance cover for power generation agreements, as it covers losses that may result from damage or injury resulting from the operation of the power plant.

This coverage includes third-party liability, which covers damages from property damage, bodily injury, and environmental liabilities that may result from the production of energy. It`s essential to ensure that the policy covers losses resulting from legal disputes arising from contractual obligations and other legal liabilities.

Worker`s Compensation Insurance

Power generation facilities require a highly skilled workforce to operate the equipment and manage the facility. As such, it`s essential to have worker` compensation insurance to cover potential claims resulting from work-related injuries or illnesses.

This policy covers medical expenses, lost wages, and disability benefits for workers injured on the job. It`s important to ensure that the policy explicitly covers the risks of working in a hazardous environment, such as a power generation facility.

Cybersecurity Insurance

With the increasing digitization of power generation facilities, there`s an increased risk of cyber-attacks. A cyber-attack can result in significant losses, including data breaches, business interruption, and damage to equipment.

It`s essential to have a cybersecurity insurance policy that covers data breaches and other cybercrimes aimed at disrupting power generation operations. The policy should also cover the potential lawsuits that may arise from such attacks.


In summary, contracted power generation agreements require comprehensive insurance coverage to mitigate risks associated with the production and distribution of energy. Property insurance, liability insurance, worker`s compensation insurance, and cybersecurity insurance are some of the key covers that should be considered.

It`s essential to work with an experienced insurance broker who understands the specific risks associated with power generation and can help you tailor the appropriate insurance coverages that suit your needs.