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For producers and carriers looking for opportunities in the energy sector, one word sums up where a lot of the growth is occurring: alternative. Thanks to critical tax incentives, investments are flowing into the energy sector and construction has ramped up. Jobs are returning. And many industry observers believe today’s construction and production activity around alternative energy is just the forward edge of a trend that will continue for decades.

Still, the growth occurring in the renewable-energy sector is accompanied by new risks for insurers with which to test their underwriting skills.  A large portion of renewable-energy companies submitted to insurance companies are brand-new entities that don’t have an operating past, and much of the technology being used is also new and untested—at least in comparison to the tools used in fossil-fuel extraction and production. And in the Energy game, there are no small losses.

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