Marsh has developed a highly efficient, uniform policy for controlling the main risks of photovoltaic systems. It is an over-all policy for photovoltaic systems and it is comprehensive because several insurances are included. An insurance program from one source reduces the administration cost and makes it less expensive.

The package covers the operation phase after acceptance. If wished, the erection and construction phase as well as the trial run can be included.

The insurance modules consist of property insurance (nearly all risk) and loss due to business interruption. It is possible to include third party liability insurance, too.

For big solar system it may be possible to insure decrease of receipts due to lessened solar radiation.

Property Insurance

According to general insurance conditions, a property loss will be indemnified if the loss affects insured property and insured interest at an insured location during the period insured by an unforeseen event (while not being excluded by a specific named peril).

These points are all to be fulfilled. To simplify the description this sentence is transferred in electrical engineering as shown in figure 4.

In an electric circuit the damage represents the generator, the light as power consumption is the indemnification. The conditions are represented by the switches which must all be closed for an electric current (meaning the conditions have to be fulfilled, i. e. conditions on insured items, insured location and more).

Insured items are all components of the photovoltaic installation required for the operations and for maintaining the operations. This includes the transformer and — if it is a bigger installation with many cells — the mains or grid in the area up to the point where the electric current is delivered to the national grid.

Insured locations are all premises used by the Insured regardless of who is their owner. At first, these are the locations where the photovoltaic systems are installed; even if the locations are rented. The items are insured if they are in repair shops for revision works and during the transport to the repair shop they are insured too. This might be regarded as a matter of course but it is not usual practice. In may policies it is stated that coverage exists only at the area where the photovoltaic system is installed.

There is insurance cover during the running time of the contract but — it is self-evident — the premium must be paid.

Insured is the interest of the owner or operator. They are the only who may receive indemnification. The interest of a supplier or a repair shop is not insured. This means, they cannot claim for a loss. A damage which does not result in a loss for the insured will not be indemnified. In a warranty case you have to claim against the supplier. The insurer stands in, if the supplier refuses warranty or if the supplier does not further exist. But the insurer will seek for recovery because only the owner/operator is secured.