Does Commercial Property Insurance Cover Solar Panel Installation or Replacement?

June 7, 2024
5 min read
A man in a hard hat working on solar panels on a roof

As businesses increasingly turn to solar energy solutions, the question of insurance coverage for solar panel installation or replacement becomes crucial. The potential risks associated with solar panels — such as damage from natural disasters or theft — make it essential for business owners to understand the extent of their insurance coverage.

What Does Commercial Property Insurance Cover When It Comes To Solar Panels?

Commercial property insurance policies protect businesses from various risks, including property damage, loss, and liability. However, when it comes to solar panel systems, coverage may vary depending on the insurance carrier and specific policy details.

There are several considerations that insurance companies may take into account when determining your solar panel service coverage:

Property Coverage

Commercial property insurance usually covers solar panels as part of the insured property. This coverage typically applies to damage caused by perils such as fire, windstorm, or vandalism. If the panels are physically attached to the building, they’re usually considered part of the property and fall under property coverage.

Named Perils Vs. All-Risk Policies

Commercial property insurance policies can be “named perils” or “all-risk.” Named perils policies only cover specific risks listed in the policy, while all-risk policies cover all risks except those specifically excluded.

It’s imperative to review the policy to determine if solar panel installation or replacement is explicitly mentioned as a covered peril.

Endorsements & Additional Coverage

In some cases, commercial property insurance policies may require additional endorsements or specific coverage for solar panel systems. These endorsements provide supplementary protection tailored to the unique risks associated with solar panels, such as mechanical breakdown or electrical surge damage.

Consulting with an insurance professional can ensure you have the necessary coverage for your solar energy investments.

Trust TENCO SOLAR With Your Solar Panel Installation & Replacement Needs

Commercial property insurance coverage for solar panel installation or replacement depends on the specific policy, carrier, and endorsements. While most policies cover solar panels as part of the insured property, it’s essential to review the policy details to determine the scope of coverage for your solar panel system.

If you’re a business owner considering solar panel installation or replacement, trusting the right team with the job is equally important. TENCO SOLAR proudly offers comprehensive commercial solar panel installations and replacements businesses can rely on for all their energy investments.

When you choose our team, you’ll always receive:

  • Experienced professionals: Our professionals have extensive experience in the solar industry, ensuring exceptional service for you.
  • Tailored solutions: We prioritize understanding your unique space and energy requirements to create a customized commercial system to meet your needs.
  • Customer satisfaction: Our commitment to our customers is reflected in our exceptional customer care and industry-leading warranty.
  • Streamlined timeline: Being a vertically integrated company allows us to expedite the process from proposal to installation efficiently.

Get your business’s commercial solar solutions by calling TENCO SOLAR at (888) 507-6937 to request a free estimate.

Have a Solar project in mind?

With over two decades of expertise in designing and installing solar systems for residential and commercial properties across California, TENCO SOLAR is the perfect partner for your upcoming solar project.