For the most part, hydroelectric plants carry several different types of insurance. Commercial General Liability, Commercial Property, Boiler and Machinery Breakdown, Workers Compensation and Flood are typical coverages for most operations.
All Hydro plants should carry Commercial General Liability insurance. Commercial General Liability insurance is usually required if you are selling power to a power company or you have a mortgage from your bank.
Commercial General Liability losses are rare but when there is a loss, it is a big loss. If someone is injured or killed within several miles from your plant, you can expect to see the plaintiff’s personal injury attorney cast a wide net looking for anyone with an insurance policy that might in any way have been a contributing factor to the injury or the wrong.
Commercial General Liability losses occur when a third party is injured or wronged due to your negligence. Please note that employee injuries are covered under your Workers Compensation policy.
If a death occurs at or near your plant and you are at fault, judgments of $1,000,000 or more are common. If a major injury occurs at or near your plant and you are at fault, expect to be sued for between $100,000 to $750,000.
You can mitigate your exposure to a Commercial General Liability loss by securing the plant, posting danger and no trespassing signage and not allow non employees onto your property.
Your Commercial General Liability policy will cover the cost of the lawsuit, even if it is a frivolous or bogus claim. This is good to know because you don’t want the plant to go bankrupt defending yourself against a lawsuit.