What is the product?

HSB’s energy efficiency insurance coverage is specifically designed for investors in energy conservation measures, energy service companies and those financing energy savings projects.

The policy is available for periods of up to five years and provides insurance cover for:

  • material damage (including equipment breakdown) to the installed energy-saving system;

  • business interruption, protecting against loss of revenue that would otherwise have been generated by such energy-saving projects, caused as a result of equipment failure or damage; and

  • asset performance insurance covering any shortfalls in anticipated annual energy savings as a result of deficiencies in the installed energy saving systems or measures.

How does it support green outcomes?

Research shows that buildings use around 40% of global energy and emit up to a third of greenhouse gases. The retrofitting of energy-saving measures into existing buildings is a key priority for reducing carbon emissions. Energy efficiency insurance seeks to facilitate this by removing much of the performance uncertainty of an energy efficiency retrofit project. This in turn, aims to make the financing of the project more attractive to investors with the effect that such projects are more likely to be realised.

How does it enable customers today?

Energy efficiency insurance provides the following benefits for those receiving, delivering and funding energy-saving projects:

  • Building owners have the confidence of knowing that performance shortfall is insurance backed;

  • Energy service companies have their assets and revenue protected up to the policy limits facilitating access to funding; and

  • Funders see the technical uncertainty from a project reduced thereby helping to make the project more attractive to investors and lowering the cost of capital.