Why EAR matters more than ever for solar

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Erection All Risks insurance has moved from a secondary consideration to a strategic necessity

As the UK accelerates toward its Net Zero targets, energy production has moved firmly into the centre of national infrastructure planning. The UK has surpassed 21.6 GW of installed solar capacity, with record levels of power generation across 2024 and 2025 and continued investment in new sites. But while policy momentum and investment appetite are strong and steady, the road from planning approval to a fully commissioned solar installation can be exposed to a range of risks that can derail even the most well-thought-out plans. These risks exist in the period before a site becomes operational – the construction, testing and commissioning phase – where traditional property insurance does not yet apply. And this is where Erection All Risks (EAR) insurance plays a crucial role.

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“There can be an element of financial stability for the employer. Because at Allianz, we also offer advanced business interruption coverage”

Jennifer Newman, Allianz

“It goes beyond solar. In this country, we’re seeing more wind sites being set up as well. That means we’re seeing more business growth within these sectors”

Jennifer Newman, Allianz

Published May 25, 2026

As Jennifer Newman, technical underwriting & portfolio manager for construction, energy & engineering at Allianz, told IB, EAR insurance is designed to respond to incidents during the construction phase, where damage or delay could otherwise jeopardise a project’s ability to reach completion. “If anything happens to the site before it is fully up and commissioned – if there’s a fire or a flood or any sort of damage – the policy is designed to help protect against potential losses,” Newman said.

That distinction, before a project becomes insurable under the property market, is fundamental. Solar installations represent significant capital investment long before they generate a single kilowatt of electricity. Panels, frames, cabling, inverters and grid connections may all be on site, partially installed or even still undergoing testing. Without EAR in place, damage during this phase could leave developers or employers facing both delays and huge losses. Essentially, EAR is designed to support continuity by helping to mitigate disruption when unexpected events occur.

Weather woes and wind threats Weather is one of the most persistent threats for solar construction sites in the UK, and it’s also one of the most misunderstood. While solar is often associated with sunshine, Newman noted that the physical make-up of panels can amplify exposure to wind or worsen damage caused by a flood or a storm. In open, rural locations where many solar farms are built, this can spiral into a serious concern – because if design calculations are even slightly off, the consequences can be very severe. One particularly exposed risk is ballasted panels. “We’ve had a few issues in the past with what we call ballasted solar – that’s solar where the panels are held on steel frames rather than piled into the ground,” added Newman. “If the wind calculations aren’t right on those, and taking into consideration the angle at which they’re at, strong winds can lift the panels, causing them to collide with surrounding structures or other panels on site.”

EAR insurance is designed to respond to precisely these scenarios, where physical or accidental damage occurs during installation, and where environmental forces play a role. However, the exposure does not end once panels are fixed in place. The testing and commissioning phase introduces a different category of risk, often involving live electrical systems for the first time. “Issues that arise with new equipment during testing and commissioning may be covered, depending on the cause and the policy’s terms, conditions and exclusions. For example, once it’s all plugged in during the testing phase, if something blows or catches fire, that would potentially be covered,” explained Newman. And in a UK market that has seen a noticeable increase in reported solar-related fire incidents, this protection is particularly relevant.

Financial security with Advanced Business Interruption coverage Beyond physical damage, EAR insurance also plays a crucial financial role for employers and project owners whose revenue depends on bringing solar sites into operation on time. Newman explained that EAR offers more than material damage protection, explaining that with Allianz policies it can also include Advanced Business Interruption cover, which is designed to help protect against the financial impact of delays. “There can be an element of financial stability for the employer there as well,” she told IB. “Because at Allianz, we also offer advanced business interruption coverage.” This cover is particularly important for solar projects tied to government-backed contracts or commercial agreements that assume a specific go-live date. If an insured event during construction or commissioning causes a delay, advanced business interruption can respond to the resulting loss of income that arises from the postponed startup. “If the incident causes a delay to the starting of the site, those loss-of-profit impacts can also be covered,” added Newman.

With government contracts often tied to specific milestones, failure to deliver on time can have consequences that extend well beyond the balance sheet of a single contractor. For installation companies, EAR can mitigate against unexpected setbacks, allowing them to be managed without financial or reputational damage. With the increase in government contracts – especially as the UK heads closer towards Net Zero – the UK’s low-carbon economy is now employing thousands of people and generating billions of pounds annually, so the ability to reliably deliver renewable infrastructure is not an option – it’s a necessity.

Choosing the most comprehensive EAR cover Choosing the right EAR policy, however, is not simply a matter of purchasing standard cover. Solar projects typically involve multiple stakeholders with overlapping but not identical interests, and insurance must reflect those contractual realities. “With EAR, it comes down to your contract conditions and understanding who’s responsible and to what level,” explained Newman. “And ensuring that the insurance that you have in place meets those needs.” This is especially important where project financing is involved, as lenders and mortgagees often impose specific insurance requirements that must be satisfied before funds are released. In practice, EAR policies for solar installations are frequently arranged in joint names. “There’s many parties to these contracts,” Newman said. “You’ve normally got it in joint names of the owner of the site, the main contractor and, sometimes, a finance party as well. As such, you have to ensure that all their interests are protected to the extent that their contracts amongst themselves require them to be.” And, as the UK continues to roll out renewable sites at scale, not just solar but also onshore wind and other technologies, the volume of EAR enquiries is rising accordingly. As Newman told IB: “As we move towards Net Zero, we’re seeing more and more renewable sites. And it goes beyond solar. In this country, we’re seeing more wind sites being set up as well. That means we’re seeing more business growth within these sectors.” Considering both the growth of the sector and a growing sophistication among developers and contractors, EAR is now seen as a core component of project risk management rather than an afterthought. With Allianz’s EAR and public liability coverages, it goes beyond simply ticking boxes; the overarching and all-encompassing plan offers peace of mind in case the worst was to happen – and that’s something employers simply can’t put a price on.

The UK has surpassed 21.5 GW of installed solar capacity

Continued investment in new sites is driving further expansion

UK solar growth and scale

Solar has seen record levels of power generation across 2024 and 2025

Source: Allianz

Erection All Risks (EAR) / Contractors All Risks (CAR) – course of construction: single projects, annual policies / open covers including Third-Party Liabilities (TPL), Contractor’s Plant and Equipment (CPE), Delay in Start Up (DSU)

Inherent Defect (combined with CAR)

Allianz Construction Insurance: What do we cover?

Civil Engineering Completed Risks (CECR) / operational infrastructures (combined with CAR)