Insurance Questions

WHO CARRIES THE INSURANCE AND WHAT KIND?

For ESSA’s:

The organization carries insurance on the building. We recommend adding a rider in case the property damages the array; for example, a tree or limb on the property falls and damages any part of the solar installation. The finance group carries insurance on the solar equipment. This coverage also protects the building against damage from the solar array. Liability insurance is necessary if any person goes on site for installation or maintenance. The construction and maintenance companies provide liability, unemployment and workers compensation insurance. This includes coverage from damage caused by the installation of the solar array and for the workers installing solar panels.

For Direct Purchase:

The organization needs to include the rider to cover the additional equipment on their roof. Typically, the cost is from a few dollars to a few hundred dollars annually.

WHAT LIABILITIES ARE THE ORGANIZATION EXPOSED TO SHOULD THERE BE DAMAGE TO THE BUILDING FROM THE SOLAR ARRAY?

Normally, the host facility adds the solar project to the building insurance. This coverage will insure any damage to the solar array, damage to the building from the array, and any injury caused by the solar system. If the array is owned by the ESSA investor, they will have insurance to cover the same.

IF THERE IS DAMAGE TO THE BUILDING OR PROPERTY DURING INSTALLATION, WHO IS FINANCIALLY RESPONSIBLE? (E.G. DAMAGE TO PAVED AREAS CAUSED BY A HEAVY TRUCK)

Solar Faithful carries umbrella insurance to cover gaps in sub-contractor insurance. The installation contractor will provide roof and site inspection prior to construction and a roof and site inspection post-construction to ensure that no damage has occurred and that the site is cleaned up after construction. If any damage is found it will be repaired prior to final system approval. This includes paving or other landscaping damage. If damage is caused by installation within five years, the installation contractor is responsible for repair to the system and/or building. After five years, building insurance will cover damage.