Net Metering Endorsements Introduced
By Sherry Taylor, Manager of Product Development and Support
Recently, we introduced a set of new endorsements specific to liability coverage for risks that generate electricity via solar panels or wind turbines. Net metering is increasingly popular and these optional liability endorsements were developed in response to requests for this type of coverage.
Liability coverage is provided for the operation of solar panel or wind turbine systems when the owner-occupant uses some of the power they generate while selling back the excess to a public utility or co-op. Coverage provided is not designed for businesses, secondary residences, dwelling or farm rentals, or other non-owner-occupied risks and these types of risks are not eligible for net metering coverage.
The coverage endorsement defines net metering and provides both on- and off-premises coverage for the premises and operations exposures. However, coverage is not provided for installation, repair or maintenance. Those exposures should be handled by the contractor for those activities, so proof of insurance is advisable.
Coverage is specifically excluded for any claimed bodily injury due to sound pollution. There is no coverage for failure to supply or any other property exposures. Also, be aware that the endorsement provisions prohibit waiver of subrogation without company consent.
An additional insured endorsement was also developed in conjunction with the coverage endorsements. Protection for the additional insured applies only when the insured is either wholly or partially responsible for any bodily injury or property damage due to his/her negligence. Coverage will not apply if the additional insured is solely responsible for the damages. The additional insured endorsement is a companion to the net metering coverage endorsement. It is not necessary to add the additional insured endorsement, but if it is added, the coverage endorsement is a prerequisite.
Since this is a new exposure type, the WRC team has put together an Underwriting Guide to assist in determining eligibility. This guide, the endorsements (which vary by program) and the advisory rates can be found on the WRC website:
- Forms: Documents > Personal Lines Underwriting > WRC Forms
- Guidelines, Recommended Charges, and Filing Information: Documents > Personal Lines Underwriting > General Information
WAMIC has filed the endorsements on behalf of its member companies but has not yet received approval from OCI. All other states will need to file them (per state filing requirements) prior to usage. Accompanying rates will need to be filed in all states, depending on state requirements.
If you have any questions, please call Mutual Assistance.