Energy

A generation asset is depreciated in books long before it ceases to be essential, and the declared capital usually follows the balance sheet instead of the replacement cost. The plant also depends on an evacuation infrastructure and a supply that do not belong to it.

Where the claim enters

Machinery breakdown, plant shutdown and contingent interruption

What decides the claim file

The equipment with the longest delivery time sets the indemnity period.

Machinery breakdown covers the internal damage of the equipment without an external claim, and it is the guarantee that the damage policy leaves out by express exclusion. Alongside it, the loss of profits is based on three decisions: the insurable gross margin —the fixed costs that continue to accrue with the plant stopped and the net profit that is not obtained—, the months of indemnity period, and the days of time excess. With a transformer or a turbine of long manufacture, twelve months are exhausted before recovering the expected result.

Machinery breakdown and the wear and tear boundary
It covers the sudden internal damage of mechanical, electrical, or handling origin, and it is valued at new replacement cost. Wear and tear is excluded, and that is the boundary examined in equipment with years of service, so the maintenance plan is included in the underwriting along with the capital.
The indemnity period versus the replacement time
The indemnity period runs until the expected result is recovered, which arrives quite after the repair is completed. It is sized based on the actual delivery time of the critical equipment, the assembly, and the procedures that return the plant to the grid.
Capitals at book value in depreciated assets
A generation line with years of service is worth little in the market and a lot to replace, so declaring the market value opens the door to the proportional rule of article 30 of the Insurance Contract Law. The new replacement clause is what supports the capital when the asset is already depreciated in books.
The leasing clause in financed assets
The financier requires being listed as the preferred beneficiary on the financed asset, and this designation is easily misplaced when changing companies. Checking it at each renewal keeps the asset's reconstruction and the financier's position aligned.

What is contracted here

The covers that support a company in this sector

Each one is designed based on the company's real exposure. None are contracted the same in two companies in the same sector.

Frequently asked questions

Lo que nos preguntan en energy

Does the damage policy cover an equipment breakdown without an external cause?

The all-risk material damage covers any accidental damage except those expressly excluded, and the internal failure of a machine is among those exclusions. Recovering it requires the specific machinery breakdown cover, which is contracted separately, valued at new replacement cost, and excludes wear and tear, so the asset's condition weighs in the underwriting as much as the capital.

How many months of indemnity period is advisable to contract?

What the asset with the longest delivery time needs, including manufacturing, transport, assembly, and commissioning, plus the administrative time until it returns to normal operation. In generation, it is common for twelve months to be insufficient and for eighteen or twenty-four to better match the actual replacement time.

What if the connection point or the supplier stops?

The loss of margin due to a third party's stoppage is covered by the contingent interruption guarantee, which requires naming the supplier or the evacuation infrastructure in the policy and setting their own limit. Without this designation, the cover only responds when the material damage occurs within the plant.

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