Cover under the Special Act on the Promotion of Distributed Energy (in force June 2024) for the liability for third-party bodily injury or property damage from accidents while distributed-energy operators (ESS, solar, wind, small-scale cogeneration and so on) run their facilities. A new product responding to the energy-transition policy.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A liability policy under the Special Act on the Promotion of Distributed Energy (in force June 2024) covering the liability for third-party bodily injury or property damage from accidents while distributed-energy operators (ESS, solar, wind, small-scale cogeneration and so on) run their facilities. A new product responding to the energy-transition policy.
Battery thermal runaway and fire.
Equipment falling and electrical accidents.
Gas leak and explosion.
| ESS thermal runaway | Dedicated battery cover |
|---|---|
| Environmental-pollution link | Secondary loss from leak / contamination |
| Multi-site | Several sites combined |
| Policy period | 1 year (compulsory renewal) |
|---|---|
| Insurer | Hyundai |
| Limit | Statutory minimum + α |
| Turnaround | 2–4 weeks |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often on distributed-energy sites — a five-scenario self-check
An ESS carries fire and explosion risk from battery thermal runaway, which can spread to nearby facilities and residents.
A falling solar array or damaged wind-turbine blade can cause third-party bodily injury or property damage.
Energy facilities with gas-leak and explosion risk need cover against harm to the surroundings.
Distributed-energy facilities are often installed close to demand, so an accident carries a high risk of harm to nearby residents.
Distributed-energy operators need liability protection to meet their duties under the relevant legislation.
An accident at a distributed-energy facility does not stay inside the facility. A fire or explosion from ESS battery thermal runaway, a falling solar array, a damaged wind-turbine blade — accidents arising from the facility can spread harm to nearby facilities and residents. Distributed energy operator liability insurance covers the liability for bodily injury or property damage that a "third party" suffers in this way. One point must be made clear: damage to the facility itself — the burnt ESS or the broken panel — falls under property insurance, not liability insurance. And accidents that occur while the safety-management duty is being breached, or during operation in breach of the Electric Utility Act, are within the exclusions.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Loss to the facility itself — a fire-damaged ESS or a broken solar panel — is the property-insurance area, not liability insurance. Liability insurance covers loss to a "third party".
ESS battery thermal runaway differs in risk pattern from an ordinary facility accident, so it is handled under a separate ESS-thermal-runaway endorsement. If you run ESS, check whether that cover is included.
If a facility accident spreads into secondary environmental damage such as a leak or contamination, separate cover is needed. Review a design matched to the risk scope, such as an environmental-pollution-linked endorsement.
The questions decision-makers ask most when considering distributed energy operator liability insurance
It covers the liability for third-party bodily injury or property damage caused by an accident while operating distributed-energy facilities such as ESS, solar, wind, small-scale cogeneration and fuel cells.
Third-party loss from a fire or explosion caused by battery thermal runaway in an ESS is covered. Because ESS risk is distinctive, it is often handled under a dedicated ESS-thermal-runaway endorsement, so check whether that cover is included.
Damage to the facility itself — a burnt ESS or solar panels — falls under property insurance, not liability insurance. Liability insurance covers loss suffered by a third party in an accident.
If a facility accident spreads into secondary environmental damage such as a leak or contamination, separate cover is needed. Review a design matched to the risk scope, such as an environmental-pollution-linked endorsement.
Exclusions include the policyholder's intent, breach of the safety-management duty, operation in breach of the Electric Utility Act, and war/nuclear-related accidents.
The insurer assesses it on the facility type (ESS, solar, wind, etc.) and capacity, the installation location and surrounding environment, the limit and endorsement structure, and past incident history. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
