What is Operation All-Risk Insurance?
Operation All-Risk (OAR) Insurance is a specialized type of insurance to cover specific risks and perils during the operation of your solar PV system. This comprehensive form of insurance provides a broad umbrella of coverage, encompassing various risks and perils, and offers peace of mind to business owners.
Typically, if an owner or operator wishes to insure a solar PV system, this will most likely fall under a fire insurance policy. However, risks included by a normal insurer for this type of policy is limited to fire and some acts of nature such as earthquakes, typhoons and flooding. In contrast, Solar Protect Plus‘ OAR insurance can be a replacement for your regular fire insurance since it provides a broader solution specifically designed to safeguard PV installations from a variety of potential threats. We’ll discuss them in detail on the next section.
What does Operational All-Risk Insurance cover?
1. Coverage for Physical Damage and Loss
OAR Insurance is tailored to provide coverage for physical damage, loss, or destruction to an insured PV installation. The policy encompasses a wide array of perils, including but not limited to:
- Acts of Nature: Natural disasters like storms, hurricanes, floods, earthquakes, and other environmental phenomena.
- Theft, Burglary, Robbery, or Looting: Protection against unlawful actions that result in the theft or loss of your PV installation.
- Loss Mitigation Expenses: Coverage for the costs incurred to mitigate and reduce further loss or damage.
- Lightning Strike: Damage caused by lightning strikes is included in the coverage.
- Explosion: Protection against losses due to explosions.
- Falling Aircraft: Coverage for damage resulting from aircraft crashes or debris falling from the sky.
- Malicious Intent: Acts of vandalism or intentional harm to the PV installation.
- Animal Chewing and Biting: Coverage against damage caused by animals gnawing or biting on the PV components.
- Third Party Liability (Optional): The option to include coverage for bodily injury and property damage caused to third parties in connection with your PV installation.
2. Loss of Business Production
If a covered peril results in the loss of business production, OAR Insurance steps in to compensate for the actual loss. The compensation is subject to an agreed-upon number of waiting days (excess) and has a standard indemnity period that depends on whether it is a rooftop installation or a ground-mounted installation. The indemnity period commences after the waiting days, which start from the moment the damage is reported to the insurance broker.
3. Inherent Defect Coverage
As an option in addition to OAR Insurance, businesses can choose to add coverage for inherent defects in PV panels. Inherent defects are damages caused by the nature of or a defect in the panels themselves. These issues are not related to external events and can include problems like delamination, bad soldering, and short circuits.
While OAR Insurance offers extensive coverage, there are certain exclusions that policyholders should be aware of. These typically include: Acts of War, Acts of Terrorism, Aesthetic Damage, Experiments and Tests, Gradual Deterioration and Losses Due to Gross Negligence. This is not an exhaustive list of exclusions since the policy is flexible and may be customized, so we highly recommend that you review the terms and conditions of your specific policy to understand what is covered and any specific exclusions that may apply.
If you’re a solar PV system owner or operations, OAR insurance offers peace of mind to businesses and individuals, like you, looking to maximize the benefits of your photovoltaic installations.
At YUDA, we understand the importance of your solar PV project. That’s why we’ve partnered with First Global Integrated Insurance Agency to bring you Solar Protect Plus Operation All-Risk Insurance and make the application easier through www.yuda.com.ph. Contact us today at [email protected] to learn more about how we can tailor a OAR policy to suit your unique system needs and risk profile. Your solar PV system deserves the best protection coverage!
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