Insurance in the Operation of Photovoltaic Plants

This paper provides an overview of property and casualty insurance industry functions, insurance terminology descriptions, and special insurance coverage considerations for photovoltaic (PV) system owners, asset managers, operators, PV operation-and-maintenance service providers, utilities, and other parties. The paper includes the results of an analysis of 6 years of property and casualty insurance claims for PV equipment and discusses considerations for purchasing property and casualty insurance for owners and operators of PV systems. PV is a relatively new asset type, and insurance companies are revisiting rates and offerings as actuarial data become available. This paper seeks to inform decisions that optimize the balance of the cost of insurance with enabling benefits to finance, permitting, utility connections, and the operation of PV plants.