X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Mark McAdams, high-hazard occupancy specialist for FM Global, maintains its underwriting requirements for power generation, mining and service interruption. McAdams spoke with NU about some of the common exposures for companies in the power-generation industry and the underwriting considerations that come into play with high-voltage risk.

What kinds of exposures are most common for companies in the power-generation industry, and what appropriate protections are needed?

What separates power generation from most other occupancies is the fact that the majority of losses are mechanical breakdown, followed by electrical breakdown. Equipment that continues to evolve shall continue to present exposures worth watching. This can be gas turbines, where manufacturers continue to test the limits of technology to squeeze out as much efficiency as possible, or wind generators, where it seems that every time we increase the size we learn new ways they can break. Time-element exposures continue to evolve as well. The evolution of how revenue flows for electric supply and distribution has created a system so complex that few risk managers or underwriters can safely say that they truly understand the financial impact of an unplanned outage.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Shawn Moynihan

Shawn Moynihan is Editor-in-Chief of National Underwriter Property & Casualty. A St. John’s University alum, Moynihan has earned 11 Jesse H. Neal Awards, the Pulitzers of the business press; seven Azbee Awards, from the American Society of Business Press Editors; two Folio Awards; and a SABEW award, from the Society of American Business Editors & Writers. Prior to joining ALM, he served as Managing Editor/Online Editor of journalism institution Editor & Publisher, the trade bible of the newspaper industry. Moynihan also has held editorial positions with AOL, Metro New York, and Newhouse Newspapers. He can be reached at [email protected]

More from this author

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.