Insurance in the Bioeconomy

The agricultural, renewable energy and bio-economy (ethanol, biodiesel, biomass, agribusiness, solar, wind, etc.) industries have had a lot of crossover and growth in the US over the past decade.  Large renewable energy and biochemical consulting firms certainly have experts in biofuels and renewable fuels, and the more common areas like biomaterials, biomass and biomass power, feedstocks, and biotechnologies.  In these larger consulting groups, one will also find expertise in other biofuels like algae biofuels, aviation/bio jet fuels, ethanol, cellulosic ethanol, advanced biofuels, biodiesel, renewable diesel, renewable natural gas, renewable and biochemicals, biogas, syngas, biochar, bio coals, biobutanol, pyrolysis oil, producer gas, wood pellets – and insurance.  As broad as these segments can be, insurance carriers’ appetites do not necessarily follow or are not as broad, therefore knowledge of specific carriers and their appetites for these segments is imperative.  (See Insurance Coverage in Biofuels for a list of the types of coverages).

Insurance is often thought of as a commodity, i.e., all insurance, carriers, and brokers are created equal. That could not be further from the truth.  In general, the insured is frequently not properly covered and/or overpaying for their insurance. Insurance brokers who understand the industry play a vital role in educating and knowing which carriers to work with. Furthermore, using a good insurance broker can help in bringing other professionals to the aid of the client, such as:

• Contract Attorneys who can review client contracts (PPA Agreements, Contractor Agreements, Sub & Material Contracts, etc.);
• Claims Attorneys who can ensure proper maintenance of closing out claims;
• Risk Control Staff  for:
  • Safety Assistance – This can be as involved as the customer desires (training, development, boots on the ground, etc.);
  • OSHA Involvement – Helping stay active in the entire OSHA process including being very successful in mitigating or rescinding fines;
• Bonding Professionals who are dedicated to providing bonding solutions for clients;
• Alternative Risk Personnel who are dedicated to finding or building alternative methods for financing losses (Captives, rent-a-captives, group programs, etc.);
• D&O Experts dedicated to Executive Risk coverage; and
• Mergers & Acquisition Professionals who can assist with vetting and due diligence

For more than 25 years, Lee Enterprises Consulting has been at the forefront of the bioeconomy. Our highly differentiated market position centers around our deep subject matter expertise in very specialized areas. We help clients minimize technical and economic risk by leveraging best practices in our industries, and we have a long track record of providing insightful analysis and practical advice. Our reputation is unparalleled because we provide a simplified process, with a single point of contact to a diverse international network of proven experts in biofuels, biomaterials, feedstocks, alternative proteins, and existing & emerging technologies. Providing access to over 150 world-renowned bioeconomy experts allows us to create tailored solutions to meet each project’s individual needs.  Please take a look at our experts and the services we provide. Call us at 1+ (501) 833-8511 or email us for further information.