California PV Installers - General Liability Insurance [RE-wrenches]

[Matt Lafferty]

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All,

Pat R wrote:
>  when you go looking  for a broker in a coffee 
>  shop at 7:30 AM, you won't find me there.
>  I'll be  on the roof ahead of my guys trying to
>  decide where to put all those  #$$$$%@&& holes!  
 
That's exactly where I would expect Pat to be!

In case anybody reading my previous post misunderstood the statement about
finding a good insurance broker in a coffee shop... One who "looks like Pat
Redgate"...

My comment was intended to be a respectful and appreciative acknowledgement
of all that Pat has selflessly contributed to the Solar Industry on behalf
of us all and for who he is as a person and businessman.... Trustworthy,
wise, and experienced.  I sincerely apologize for any implication to the
contrary!  

I am acutely aware of the efforts Pat & others have put forth trying to gain
favorable recognition of the Solar Industry in the insurance market, develop
a group-insurance program, and to offer this as a benefit to CalSEIA
members.  As Pat said, "It is a round  hole being filled by square pegs by
just a few carriers and only when your broker is motivated."

The fact that "they" want/need at least 100 contractors with 5 years history
to justify a group policy is part of the issue, for sure.  There is strength
in numbers, just ask WalMart.  The history that insurance companies are
looking for is "5 years uninterrupted coverage", by the way.  This is
problemmatic due to the exponential growth in the industry over the past 5
years... Especially in PV.  Five years ago, there were barely 100
contractors in CA that did PV at all... Insured or un-insured.  On-grid,
off-grid, or both.  (GL is "recommended", but not a "contracting
requirement" in CA, unlike some other states... Yet!)

The fact that roofs are so often involved adds HUGE complexity to the mix...
In CA, the lawyer-created "issue" of "mold" is regarded as a HUGE
liability/risk from an insurance company's perspective.  The "mold issue" is
one that makes insurance companies more than a little nervous... As I said
previously, "CA stands for Class Action".  Any work that affects the
weather-proof integrity of a building is going to be subject to high
premiums, primarily due to the reduced number of insurance carriers willing
to underwrite anything in this area.  Since the roof is regarded as the
primary component to the weatherproof integrity of a structure, they see our
work as "increased liability".  Another factor is the historical losses
associated with roofing contractors... Ergo the historical higher bonding
requirements for their classification.

Unless we, as a collective group, are able to demonstrate a meaningful
"low-risk" to the insurance carriers, we will be forced to pay whatever they
say if we want to get insurance at all.

The tough thing to swallow is that we aren't just "plumbers" and we aren't
just "electrictians".  We're also "not roofers".  Graham O and Pat R have
said it before and I'm going to say it again, "The trade that most closely
resembles ours is HVAC."  Ours includes special knowledge and practices
which incorporates, of all things, SUNSHINE... And AC & DC electricity...
And line and control voltages... And special codes... And inverters... And
various roof-types... And "non-standard" roof penetrations in some cases...
And...

Simply put, the insurance companies don't know which of their "boxes" to put
us in, and opt for the "most conservative" from a risk-management
perspective.  I don't know which is worse... GL or Workers' Comp... 

Peace and Sunshine to all and...

Good Luck!

Matt Lafferty 
mlafferty at universalenergies.com 

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