Solar companies are struggling with warranty terms and efficiency guarantees when bonding projects.
Bonds may reduce the cost of funding a construction phase, however finding affordable bonds is often difficult due to the lack of familiarity insurance professionals have with the risks associated with the fledgling renewable energy industry. Why should this matter to you as a solar contractor and your insurance program?
- It is essential you are partnered with a broker and underwriter who understands the solar space and is able to work through not only today’s issues but can foresee what lies ahead. Finding the proper bonding and insurance coverages are an absolute must in addition to addressing future risks to ensure your business’ success.
- Additionally, solar companies are getting lumped in with your “typical specialty contractors” (i.e. electrical, mechanical, etc.)
Solar contracts have a 60-70% component cost making them much different than a standard construction project. Solar is actually much less “risky” and should be viewed more as a supply and install agreement.
Through Horton’s experience, we have reviewed numerous solar contracts and continue to get our clients the most competitive terms in the market. However, competitive terms is a broad phrase. What we really mean is achieving a competitive rate, most capacity on a per project and aggregate basis and competitive indemnity package.
Our team of insurance professionals are available to discuss your solar energy project and the surety needs to move your project forward. With strategic partnerships amongst numerous carriers and underwriters who are willing to consider solar companies with no personal guarantees, begin the steps to taking your business to a higher level of performance today.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
