How can Risk Management & Insurance Help?
Risk Control
Risk Retention & Transfer
Risk Retention & Transfer
Compared to other industry sectors, the renewable energy sector is
relatively young in its stage of maturity.
Consequently, risk control could be overlooked
and underinvested.
However, this is precisely where potential vulnerabilities lie. If you control to prevent substantial losses in the first place. This includes practices like defensive driving, safety training, emergency action plans, hazard prevention, equipment inspection, and maintenance.
Risk Retention & Transfer
Risk Retention & Transfer
Risk Retention & Transfer
Risk Retention and Transfer often go together because typically, you don't just transfer 100% of your risk without retaining some.
An example
would be an insurance policy that includes specific limits and deductibles.
Risk Optimization
Risk Retention & Transfer
Risk Optimization
Examples
- Given that natural catastrophes do not discriminate against developers, you should seek a spread of risks across geography. If you have a concentration of risk in a particular area, consider requesting a cap on deductibles. In the event of a single event affecting multiple assets in the same area, you would not want to pay the deductible multiple times.
- The cost of insurance is directly correlated with the number of standalone programs you have in place. Consolidate standalone insurance programs into one or a few master programs.
- Please do not trade dollars with the insurance company, meaning you don't want to spend $1 on insurance premiums for the carrier to assume $1 worth of risk. How can you prevent this? Don't consider the insurance premium spent as maintenance expenses.
So the importance of risk management and thinking through why you need to buy something is far more important today than simply buying it, and that's a really difficult thing for this industry to go through.
Mike Kolodner