For energy cooperatives, the capital used to finance solar or wind projects often comes directly from its members and the local community. Protecting this capital from construction risks is paramount to maintaining member trust and financial viability.
The Unique Vulnerability of Member-Financed Projects
When a cooperative undertakes a project (e.g., a community solar farm), the failure of that project during the build phase is not just a financial loss; it is a loss of trust and a direct hit to the private savings of its members.
- Cost Overruns: Unexpected damages or delays during construction can quickly deplete contingency funds, necessitating further (unpopular) capital calls.
- Contractor Failure: If the primary EPC contractor goes bankrupt or fails to complete the work, the cooperative must bear the costs of finding a replacement and completing the project.
Construction All Risk (CAR)
CAR insurance is essential. It covers all physical damages to the project during the construction and testing phases.
- Coverage Focus: Protection against material damage (storm, theft, fire, faulty workmanship) and the associated costs (e.g., expedited shipping of replacement parts to minimise delays).
- Benefit for Cooperatives: The policy provides a direct financial guarantee to the members that their investment is protected, regardless of construction mishaps, thereby safeguarding the cooperative’s reputation and future funding base.
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