Anaerobic Digestion Insurance
Anaerobic Digestion Insurance
The Anaerobic Digestion industry plays an increasingly important role in modern renewable energy production, waste management, and carbon reduction.
AD facilities help divert organic waste from landfill, produce biogas and biomethane, and create digestate products. However, operating an anaerobic digestion plant also brings a complex range of insurance exposures that require specialist understanding.
Businesses involved in the design, ownership, development, and operation of anaerobic digestion facilities face significant risks, including fire and explosion, plant breakdown, gas leakage, pollution incidents, feedstock contamination, machinery failure, business interruption, and potential environmental impairment liability.
What Is Anaerobic Digestion Insurance?
With demand for more AD / Renewable energy plants growing it essential to have all the correct insurances in place to fully protect your business.
Like any business insurance, anaerobic digestion facility insurance is there to protect you, your plant, and your business income. But because AD facilities combine elements of waste processing, biological treatment, gas production, energy generation, and environmental regulation, they need insurance arranged by brokers who understand the sector properly.
We understand the specialist risks faced by anaerobic digestion operators, developers, and plant owners. Our expert brokers assess your specific operation and arrange insurance solutions designed to help protect your business on a comprehensive and practical basis.
What does Anaerobic Digestion Insurance cover?
- Plant and Equipment Insurance
Protection for digesters, tanks, CHP units, gas upgrading systems, pumps, mixers, membranes, pipework, electrical systems, and other essential plant assets against damage, breakdown, theft, or loss. - Liability Insurance
Protection against third-party claims, including Public & Employers Liability, and liabilities arising from plant operations, contractor activity, or site incidents. - Business Interruption Insurance
Financial protection if an insured event disrupts plant operations, gas production, electricity generation, biomethane injection, or feedstock processing capacity. - Environmental Impairment Liability Insurance
Cover for pollution and contamination risks, including accidental releases, digestate escapes, leachate-type contamination, watercourse pollution, and associated clean-up costs. - Engineering Inspection and Breakdown Cover
Support for mechanical and electrical plant exposed to demanding operating conditions, including failures affecting pressure systems, gas handling equipment, and critical process infrastructure. - Professional Indemnity Insurance
Relevant where advice, consultancy, plant design input, process guarantees, or technical services form part of your business activities.
Why Choose Konsileo for Your Anaerobic Digestion Facility Insurance?
Insurance for anaerobic digestion plants should not be treated as standard commercial insurance. AD sites are technically complex and can present a challenging mix of process risk, environmental risk, energy infrastructure risk, and health and safety exposure.
We also have a specialist Farming & Agriculture department that can provide quotes on the Farming aspect of the business.
Our specialist brokers understand the insurance challenges faced by anaerobic digestion businesses. We recognise that a plant may include waste reception areas, digesters, gas storage, flare systems, CHP engines, upgrading equipment, grid injection assets, digestate lagoons, vehicle movements, and contractor interfaces, all on one site.
In addition to the business interruptions that many businesses may suffer, the biogas industry must also face the fact that, despite stringent Health and Safety management AD plants are uniquely at risk from explosion hazards, and as recent UK events have proved. The hazard may even come from external factors such as lightning strikes.
We can help you navigate this complex insurance landscape and work with you to arrange protection that reflects the real exposures of your operation.
Our aim is simple: to help you protect your facility, satisfy lender and contractual requirements where relevant, reduce uninsured exposure, and keep your operation running with confidence.
Speak With an Anaerobic Digestion Insurance Specialist
If you own, operate, develop, or manage an anaerobic digestion facility, speak with a specialist broker who understands the sector. Contact us to discuss your insurance requirements, or complete the enquiry form and one of our team will get back to you.
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Frequently Asked Questions
Anaerobic Digestion will be required for any company that operates an Anaerobic Digestion / Biomass processing facility.
It covers the actual operation of the AD Plant for any damage it may cause under Public Liability and protects the actual Plant and equipment itself, for insured perils such as Fire, Lightning, Flood etc.
Yes and these would be strongly recommended to obtain, so that the Plant can still generate income even though it is out of operation.
They have a high fire & lightning risk attached to them and many large claims have occurred in recent times. They are producing Gas / Energy which is considered high risk by insurers.
The premium is largely dictated by the replacement value of the plant and equipment itself and the level of energy output it is producing. It is also essential that the correct Health & safety risk assessments are in place and maintained. This will also have a bearing on the premium.
Yes and it is essential that these are covered as large pollution claims have occurred in recent times.
Yes and it depends on the process and what waste products are being used to create the energy. Some will use animal waste and others will use vegetable / food waste so insurers will have different rates for these.
Operators of such plants will often be asked to complete a proposal form by the insurers, so that they can gain a complete understanding of the individual risk. Once completed the broker / insurer will advised on the covers that are essential for the business.