JERSEY CITY, N.J., May 31, 2011 — ISO has announced new general liability classifications for alternative energy sources and nanotechnology. ISO is introducing most of the new classifications with accompanying estimated loss potentials.
“With heightened interest to reduce the carbon footprint, establish energy independence, and increase the use of renewable resources, alternative power is a priority for many,” said Beth Fitzgerald, vice president of commercial lines and modeling at ISO. “In response to the growing demand for alternative energy, ISO introduced classifications for risks in three main areas: biofuels, solar energy, and wind energy. The new classifications will allow for future evaluation of the loss experience of those emerging markets.”
via www.iso.com
Interesting sign of the times. Apparently, ISO now has information with enough statistical credibility to support these new classifications. I wonder what classifications we can't imagine right now will show up in the Commercial Lines Manual within the next 10 years?
What types of liabilities would this include Tim? Can you give a few examples?
Posted by: Jim D. | July 21, 2011 at 06:50 AM
Interesting question. Most of the liability coverage would be in the premises exposure, I would think. I don't know whether biofuels would fall under the CGL policy's definition of "pollutant", but with wind power generators, there's an exposure to injury or property damage if the turbines collapse or otherwise malfunction. Solar power generators don't have moving parts, so I would think the exposure there is fairly low. Anyone out there have experience with these risks and can tell me what I'm overlooking?
Posted by: Tim Dodge | July 21, 2011 at 01:08 PM