BESS risks aren’t well understood
BESS is a new and challenging asset class for insurance providers. Energy storage is radically different from other renewable technologies such as solar and wind. There is a dynamic chemical process happening within every battery — even when sitting idle. This brings an added level of complexity to asset management that operators and insurers alike are trying to understand.
What insurers do know is that a battery incident can result in total loss of the asset, and they price their coverage accordingly. Most safety efforts today focus on limiting the damage and fiscal exposure to only one container. It’s a reactive approach rather than a preventative one.
Read the solution brief to see the role data analytics plays in improving BESS insurance conditions.
