The insurance needs of homeowners and businesses will evolve as they upgrade their property with green technology. Agents who can position themselves as knowledgeable on the topic, and who check in with clients to discuss renewable-energy exposures, will be providing a valuable service to customers—and giving themselves an opportunity to increase their book of business.

Here's an overview of what agents need to know to play this key advisory role in helping customers understand the risks that come with installing and maintaining solar panels on their property.

STEALING THE SUN

Solar-panel theft has become a concern with the increase in installations. Home and business owners should consider this exposure when investing in the panels.

In addition to the panels and wiring above and below ground, there are combiner boxes and inverters which contain parts and equipment attractive to thieves. Having a clear understanding of who is responsible for equipment leading to substations and transmission lines is imperative to ensure that it is being monitored (and insured) appropriately.

In the event that a loss does occur, the customer should be able to identify the panels. Identifying codes can be etched into every panel, making it easier for the police to identify stolen ones. This also is helpful to claims adjusters, as they need to identify which panels are damaged in the event of a catastrophe. Laser etching is a vast improvement over easily removed bar-code stickers used to identify the majority of panels today.

INSTALLATION, MAINTENANCE

It's important to confirm that panels are properly installed—a seemingly simple concept, but one that can be tricky when taking into account the “newness” of the industry as a whole.

Agents who have contractors among their clients can help them become aware of exposures related to installation:

• Increased risk of a roof collapse comes from the added weight of PV modules and support systems. The PV system also may alter the drainage on the roof or create additional drifting of snow.
• Loose roofing panels create the potential for a “sail” or “pinwheel” effect from a panel or conduit flying off the roof.
• Temporary electrical installations and site work create additional risk.
• The roof membrane could be damaged during panel installation.
• Agents also should talk to their business clients about taking steps to reduce the risks associated with maintaining the system:
• Can a mechanic physically access panels for maintenance?
• Have electrical connections been kept tight? (Loosening may cause electrical equipment to break down sooner.)   
• What are inspection plans for combiner boxes?
• Are air filters properly changed to keep inverters cool and efficient? 
• If Mother Nature isn't keeping the panel clean, what is the plan to hose panels down?
• Are the panels protected from fire hazards, such as overgrowth of grass, and from rodents?
• Who has reviewed warranty agreements and other contracts for operations and maintenance to know responsible parties?

PEACE OF MIND

Agents who are knowledgeable in the solar industry can make sure clients are both aware of the latest trends in risk management and the coverage options available. Agents with the expertise to deliver this kind of service may see an increase in repeat business and referrals in the burgeoning solar industry.