Amwins Global Risks Expands Commercial Insurance for Battery Energy Storage and EVs
Amwins Global Risks (AGR) has expanded its commercial insurance portfolio to cover battery energy storage systems (BESS) and electric vehicle charging infrastructure, addressing a critical gap in the market.
This pioneering insurance facility represents a significant development in the fast-evolving energy landscape. Specifically structured to accommodate distributed assets like BESS and EV charging stations, it employs a portfolio approach with deductibles tailored to the specifics of each site. This marks a departure from traditional utility-scale insurance, which has often presented challenges for smaller projects and distributed assets due to high deductibles and unsuitable terms.
Responding to Market Challenges
The BESS insurance market has experienced volatility, partly due to high-profile incidents such as battery fires. These challenges have resulted in some insurers leaving the market or restricting capacity. In light of this, new structures like AGR's facility play a crucial role in providing coverage where there have been gaps. As Allianz UK demonstrated in its July 2026 initiative, enhancing underwriting standards can fill voids created by market exits.
AGR's innovative facility, operative since March 2024 through their managing general agent NARDAC, offers up to $50 million in coverage per location for BESS, supported by eight Lloyd’s syndicates. This coverage is vital for developers managing multiple small projects across various sites, allowing them to bundle these under a single insurance program. This approach not only mitigates risk but also encourages the continued growth and expansion of distributed energy solutions.
Implications for C&I Sector
In the commercial and industrial (C&I) sector, projects may be individually small-scale but collectively significant when managed across multiple locations. This structure allows for portfolio-level policy underwriting, which can reduce financial strain caused by high deductibles linked to traditional insurance terms. Tom Harries, a director at AGR, noted the benefits of consolidating assets for more effective risk management, emphasizing that this model supports efficient portfolio-scale underwriting while accommodating the unique risks of each site.
| Facility Feature | Description |
|---|---|
| Coverage Capacity | Up to $50 million per location. |
| Supported by | Eight Lloyd’s syndicates. |
| Primary Focus | U.S. market for EV charging. |
Flexibility and Growth Potential
AGR's facility also accommodates the construction and operational phases and includes insurance for delay in start-up and business interruption. Primarily targeting the U.S. market, the facility accesses London market capacity through Amwins' London operations, providing American developers with much-needed insurance options where domestic options are limited. Harries highlighted the facility's adaptability in incorporating new projects, which aids in managing natural catastrophe exposures and aligns with developers’ expansion plans.
This strategic expansion aligns with AGR’s recent initiatives, such as the enhanced facility for renewable energy natural catastrophes, which increased capacity significantly and extended coverage globally. These moves underscore AGR's commitment to supporting renewable and distributed energy sectors, offering competitive and comprehensive solutions in a transitioning energy insurance market.