Performance Insurance facilitates efficient financing and addresses performance risk in the operation of an energy facility or technology by guaranteeing a level of production sufficient to meet debt servicing or by supporting the warranty obligation of the insurance provider.
An A+ rated carrier will insure projected production/revenue such that the lender can rely on coverage in the event that production is insufficient to meet debt service for the duration of the Off-Take agreement.
A Performance Insurance policy will directly cover Losses/Production Shortfalls due to:
- Defective production line design
- Faulty material
- Faulty workmanship
- Improper or insufficient production line maintenance