RENEWABLE ENERGY INDUSTRY – INSURANCE OPTIMIZATION AMIDST NEW TAX LAWS | PROTECT YOUR BUSINESS WHILE REDUCING INSURANCE PREMIUMS
In a recently published article, the Wall Street Journal looked at how new tax laws could impact 15 major industries in the United States, including Renewable Energy.
It is believed that the proposal in the House tax bill would reduce or sunset federal tax credits for wind and solar projects. This counters the push by industry trade groups such as The Solar Energy Industries Association (SEIA) and The American Wind Energy Association (AWEA) to protect the existing tax credit.
AWEA further reports that if the new tax code were to retroactively change how businesses can qualify for wind energy credits, one of several results might be the termination of construction contracts already signed.
Renewable Energy Companies have much to lose financially and also open themselves up to multiple layers of risk if this happens. Broken contracts would result in lawsuits and terminating employees could lead to wrongful termination claims. While these may pale in comparison to the overall business risk posed by lost tax credits, energy companies planning on trying to persevere through tough times can better protect themselves while taking action to reduce one major expense, insurance.
Through proactive revenue and payroll audits, a skilled Renewable Energy Insurance Broker can negotiate premium reductions. Adding lines of coverage such as Employers Practice Liability (EPL) can protect employers from wrongful termination claims. Ensuring proper Professional Liability (E&O/D&O) coverage can also help to ensure insurance coverage will respond to suits brought by third parties who’s contracts were terminated. These are just a few areas to address in a company’s overall insurance program and there are many more.
Turning a blind eye to political and economic threats to the Renewable Energy Industry is not an option. Instead, work to identify potential areas of risk and how you will address them to limit or remove the threat all together.
Those of us who have been in the industry know the unique challenges we face and how best to address them. If you are unsure on how your policies will respond or not confident in your overall risk management strategy, seek the help of a Certified Risk Manager.
For more information on how to obtain coverage from a renewable energy specific carrier, please contact the renewable energy risk managers at RenewableGuard.com
This article was published by Michael Cosgrave, CRM, CIC. Michael is a Certified Risk Manager for the Renewable Energy Industry and manages the insurance services offered through RenewableGuard. Michael is also the nationally endorsed insurance broker for a highly effective and encompassing multi-line renewable energy industry coverage program.