CLS Risk Solutions has launched a new product for the renewables industry to protect against interruption to a construction project due to third-party intervention, such as a judicial review.
The company said Permit Challenge Insurance provides comprehensive protection and “could unlock a number of renewable projects throughout Europe, which are currently held hostage to lengthy legal process”.
The coverage ensures the solvency of the developer during third-party challenges and, in the event of an unfavourable final court order, it covers the capital investment into the project and financing repayment obligations.
CLS Risk Solutions Europe business development director Will Brooks (pictured) said: “As well as creating better investments, the threat of a challenge to a permit is enough for private investors and banks to stop funding; without insurance there is no certainty that the business plan will perform.
“In the worst case scenario, they lose all their money. They won’t take that risk. In the simplest terms, without Permit Challenge Insurance, developers will find it difficult to get the funding they need to build wind farms.
“It is clear from our existing strong local broker partnerships in Europe, that the insurance industry has a significant opportunity to support the renewable energy sector by providing certainty that has been missing until now.”