Solar Panels involve unique installation risks and require specialist insurance
Solar panels are becoming more and more popular for commercial properties and business premises. Photovoltaic solar panels can help offset the energy costs of businesses, and fortunately, the panels are also relatively easy to insure. In the past decade, Romero Insurance have successfully insured many solar panels installations, featuring on top of business headquarters, warehouses and facilities.
Here are the areas of a business’s premises where solar panels can be installed:
- Office building’s roof
- Office building’s facade
- On the warehouse
- On a storage facility
- On any unused outbuilding
- On the ground
- On the carpark
- Nearby wild spaces and Agricultural land
However, since varieties solar panels are still relatively new, they pose unique insurance issues which have not yet been tested. We recommend CEOs and business managers read the below information before considering solar panels, or for those already with solar panels, to read as a reminder of the risks solar panels can pose and the questions to ask your broker.
Here’s what businesses need to consider when installing solar panels:
Secure installation
Solar panels, no matter where they are purchased from, must be fitted by a certified professional. The Microgeneration Certification Scheme (MCS) is a UK initiative that certifies solar panel installers and products to ensure they meet quality standards. An MCS certificate is a mark of quality that demonstrates an installer’s competency and compliance with industry standards. It is not legally required but does show the installation was done to a high standard.
At Romero Insurance, we have seen instances of solar panels fitted wrongly, improperly or poorly. One such example had solar panels fitted on top of PUR sandwich panels. The installation of solar panels must be satisfactory to current standards, yet current standards have improved and updated, and so solar panels installation should be reviewed before a claim happens. A MCS certification will go a long way to successfully acquiring the best insurance.
Labelling and signage
There needs to be sufficient labelling, indicating that photovoltaic solar panels are on the roof of buildings. The switchboard also needs to be well labelled, as well as power cables and the location of batteries. This is to aid maintenance workers but also emergency services.
Updated risk assessment and emergency response plan
All clubs should have an up-to-date emergency response plan and fire risk assessment. Installing solar panels will require an updated assessment, as well as safe access to the roof and an emergency evacuation area away from the building.
Solar panels are heavy and contain toxic chemicals. A fire in the club building would mean a significant risk posed by the panels, in potentially collapsing the roof and expelling toxic fumes.
Accidental damages
Accidental damage is damage which is unintentional and a one-off event. Accidental damage is often included as an extra within insurance policies; such as gadget insurance or home insurance. However, for solar panels, accidental damage is typically excluded by insurers.
For more information on the necessity and possibility of acquiring accidental damage insurance, contact Romero Insurance and speak to an expert.
Deep clean requirements
Solar panels need to be cleaned every year (every two years at a minimum). This needs to be done by a professional because of the electrical dangers. A whole manner of things can dirty a solar panel, including leaves, mud, animal excrement, feathers, and standing water. A deep clean should improve the effectiveness of the panels as well as the longevity.
If you or a member of staff spot an excessive number of leaves beginning to collect on the panels, do not try to clean it yourself. Contact a professional who won’t expose themselves to the risk of a flash arc. These arcs can exceed temperatures of 3000 degrees.
Electrical risks
Solar installations have significant electrical risks, including electric shocks and explosions. Solar panels should only ever be interacted with in any way by a professional.
Before entering any ceiling space, or warehouse, or stage facility, where solar panels are present, make sure to identify and confirm all sources of power. Be aware, there may be more than one source. These should have been signposted and secured by the installer. When entering ceiling spaces, all cables must be treated as live and should not be touched.
Cabling which must be pulled inside will need to be contained effectively as to stop rodents damaging the wiring.
Risk of a fall
Solar panels are often installed on the rooftops or facades of buildings, which are very high. Some office buildings will allow access to the roof. It is imperative individuals and unqualified workers do not attempt to maintain or interact with panels on rooftops, as there is a high chance of a fall and a liability claim.
Power storage
Power generated by solar panels often needs to be stored to be used, rather than distributed back into the grid. The power is stored in batteries. The best and most common battery solution is lithium ion batteries, which still pose significant risks.
Batteries need to be stored safely and securely, reducing the risk of fire or damage from floods and moisture. Batteries should be in a cool, dry, well-ventilated area. They should not be in rooms where people can access, nor be kept outside.
Batteries cause electrical fires, which can be devastating to premises and lead to significant insurance claims. Ensure you have the space and precautions in place before adopting a solar power battery storage. Also, if you have a solar powered battery already, then ensure you re-review procedures and safety measures.
Theft
Solar panels are a target to thieves because of their expense, available wiring and visibility. Professional criminals can dismantle a solar power installation in minutes.
To prevent theft of solar panels components, install deterrents. some form of physical protection that prevents panel removal should be considered. This could mean the use of security fasteners or system monitoring tools and alarms. Consider how cameras could help with deterring and catching thieves, and correctly position some cameras to view the roof.
How can solar panel installation affect my insurance?
There are a few key ways in which your insurance could be affected by solar panel installation:
- Your current insurer may reject specific cover for your solar panels. Therefore, to remain fully covered, you will have to find insurance elsewhere. The best way to switch insurers is through a confidential review with Romero Insurance.
- Solar panels will increase the valuation of property and therefore need to be accounted for in your Sums Insured.
- Solar panels can affect your liability cover. The risks posed by solar panels, such as a solar panel detaching and damaging a neighbours property or causing injury, needs to be covered.
Hopefully the above information will help in your decision making for whether you want to go ahead and install solar panels, and what to look out for during the process.
Ensure you fully communicate all solar panel-related financial transactions to your broker.
Solar panels will be detailed in structural surveys and assessments, therefore if your business has had solar panels for a while, then perhaps consider reviewing the installation and the quality of the battery storage needs before it becomes a large, more expensive issue.
If the installation of your solar panels is not acceptable for the surveyor, then you may be refused cover by the insurer. This could severely hamper a broker’s negotiating power. It’s best to invest now, to save in the long term.
Solar Panel Insurance for Businesses with Romero Insurance
Confidential reviews offer businesses an opportunity to gain a comprehensive understanding of their current insurance. It also demonstrates how their insurance is affect by current operations and processes. It’s the best way to further understand your policy and insurance costs without having to go to your current provider.
The full benefits are far-reaching. They include risk identification, compliance strengthening, fraud prevention, potentially better terms. By accepting a confidential review form Romero Insurance Brokers, businesses can improve their offering and build towards long-term success. Partnering with a Romero insurance brokers will ensure the review process is conducted professionally, securely, and secretly.
To get your business and solar panels insured, contact us today.
