Insurance for Solar Manufacturers
Geothermal manufacturing and installation have many components. As an example, even creating the necessary massive, resin-based piping has a number of steps including (but not limited to) drying the material, mixing it with colorant, and heating it for malleability. And that’s just the very beginning of the production process. Furthermore, geothermal system components require large quantities of protective storage space throughout the production process. For instance, prior to pipe production, manufacturers typically store the resin in a series of silos, which can incur significant costs if damaged.
Property coverage provides protection for all of these components and any other business property your company owns including furniture, fixtures, equipment, automobiles,stock, machinery, etc. Your insurer may require periodic updates on your business’s inventory of raw materials and goods, so in the event of a loss the claim can be settled accurately. If, for example, a silo fell down in a storm, temporarily suspending pipe production, additional coverage for business interruption and extra expense insurance could compensate for the resulting loss of income.
For small manufacturing businesses, commercial general liability (CGL) insurance will likely be appropriate. This type of policy essentially covers the liabilities that result from the location or activities of any business, such as:
- Personal injury
- Damage of Property
- Warranties (or a failure to provide warranties)
- Equipment or materials furnished in connection with the geothermal materials
Liability risk is inherent to every business. In the case of geothermal energy, these liabilities can be even more acute. For instance, if a manufacturer selects the wrong sized equipment the effectiveness of the entire system can be diminished, potentially even damaging existing underground piping. Mistakes happen to even the most qualified, careful manufacturers and hedging these risks is key.
A CGL policy provides a broad range of coverage. The most important coverage for manufacturers is Products-Completed Operations Coverage. In the event of a lawsuit claiming that a product manufactured by your business caused injury or damages this coverage will provide for the legal defense and damages.
Manufacturing and installing geothermal systems is very physically and mentally demanding and workers expose themselves to a variety of risks. For instance, even knowledgeable employees experience some degree of hazard in the process of physically adapting a current property’s electrical system. In particular the large size and underground installation of the geothermal system creates a number of potentially dangerous situations for employees. When considering the safety of the workforce, prevention is always the best option. In the event that there is a workplace accident, it is important to be prepared with the correct insurance coverage. Workers’ compensation insurance will cover the costs of wages and medical expenses of employees who are injured or become ill on the job. Most states require a company to hold a workers’ compensation policy for their employees. If you are unsure of your state’s requirements for workers’ compensation coverage check with your insurance agent.
The heat pump is the heart of the geothermal system.
Geothermal piping comes in all shapes and sizes.
Large silos store the resin for making the pipes.