What Is Operating All Risk (OAR) Insurance?

https://robfreeman.com - What is Operating All Risk (OAR) insurance policy? An operating all risk policy, also called an operational all risk or OAR policy, is a type of property insurance coverage that protects solar, wind and other renewable energy projects after construction once projects are operational.

Once a project has been placed in service, an OAR policy covers the cost to repair the project after property damage occurs…

An OAR policy may be written to include a wide range of potential perils, including wind, earthquake, hail and flood.

An OAR policy can also cover perils specific to solar projects including microfractures and business interruption and loss of income.

The term “all risk” is a bit of a misnomer but is synonymous with a “special property insurance form” which means that the policy will cover all risks unless they are specifically excluded from the policy.

When writing an OAR policy, the full limit of the project may be covered to its full replacement cost or a loss limit factor may be applied.

OAR policy cost is a function of many factors including the types of perils that are covered, the project location, risk management, history of claims, the loss limit, the deductible for catastrophic risks such as flood, wildfire and quake, and the all-other-peril deductible.