The Unique D&O Risks for Cooperatives

Unlike commercial entities, D&O claims against cooperatives often stem from their dual role: being both a commercial operator (running a solar park) and a membership organization (managing member funds and expectations).

• Financial Claims from Members: Members who invest capital (e.g., in a local share scheme) may sue the board if a project faces unforeseen losses, delays, or cost overruns, claiming mismanagement or failure to meet prospectus promises.
• Regulatory & Permitting Claims: Boards can be personally held liable for breaches of environmental law, zoning regulations, or tax compliance, especially when dealing with complex energy infrastructure projects.

The Role of D&O Insurance

Directors & Officers (D&O) Liability Insurance protects the personal assets of board members against legal fees, defense costs, and settlements arising from wrongful acts or alleged breaches of duty.

A specialist D&O policy must cover:
– Entity Coverage: Claims against the cooperative organization itself.
– Indemnification Coverage: Protecting the directors when the organization is legally unable to indemnify them.

Protecting Your Members: Specialist Insurance for Cooperative Risks

Energy cooperatives face a unique matrix of risks: managing member capital, protecting volunteer board members (D&O), and securing continuous revenue from complex assets. Standard commercial insurance often fails to cover these specialized liability and capital protection needs.

Don’t let a claim jeopardise your cooperative’s mission and member trust.

Solarif understands the unique fiduciary and operational duties of energy cooperatives. We translate these risks into bespoke D&O, P&C, and Business Interruption policies designed to safeguard member investments and secure the long-term viability of your community project. Contact us today for a risk consultation tailored to your cooperative’s structure.

📧 Email: support@solarif.com
☎️ Phone: +31 (0)26 711 5050