Specialist energy and infrastructure broker and managing general agent (MGA) NARDAC has announced the expansion of its underwriting services to include coverage for the construction of battery energy storage systems (BESS). The company said the new offering complements its existing operational insurance for BESS owners and operators.
The additional Construction All Risks (CAR) cover will provide protection for developers against natural perils and project risks during the construction and commissioning phases, including exposure during high-risk testing stages. The extension is intended to support developers as BESS projects continue to grow in scale and complexity.
NARDAC is also extending its underwriting reach to Europe and Australia, building on existing services in the UK and US. The company said the move would help developers in countries such as Germany, Benelux, Spain, Italy, Bulgaria, and Poland as they transition from developing single sites to managing larger portfolios of operational assets.
The company noted that competitive BESS auction tenders in markets including Italy, and upcoming tenders in Estonia and Portugal, are likely to put downward pressure on project pricing. This may prompt developers to reassess their insurance strategies, particularly those adopting dual or multi-contracting structures that shift liability back to project sponsors.
NARDAC highlighted that while developers have improved safety measures to mitigate the risk of thermal runaway during operations, short circuits caused by manufacturing defects or installation damage can occur during hot testing, posing increased risk during commissioning. The firm also pointed to ongoing weather-related risks, such as flooding, which continue to affect construction sites across Europe.
“Europe is in the midst of a BESS boom,” said Robert Bates, partner at NARDAC. “We’ve exciting new markets, such as Poland, coming online, and more mature markets like Italy and Germany continuing to see consistent, fast-paced growth. What that means however is huge demand for BESS equipment and contractors. So, by offering construction insurance to BESS developers, we can play a direct role in ensuring the procurement of high-quality componentry and contractors with strong track records, advise upon and underwrite key construction risks, and ultimately reduce the potential for equipment failure during hot testing and subsequent project downtime and revenue loss.”
Bates added: “And while natural catastrophe exposure is often front of mind during operational project phases, development can be significantly delayed by the increasing prevalence of flood. We’re therefore keen to offer our insureds protection from flood risks, guiding them with specific site mitigation during the construction process.”
NARDAC’s capacity is provided by eight A-rated Lloyd’s syndicates, offering US$50 million in lead market underwriting capacity for large BESS projects and up to US$20 million for smaller developments.
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