The challenge
A fast-growing solar tracker company, making component parts that optimizes solar tracking technology, faced a convergence of risks. As a company whose products incorporate embedded software, one of its most significant risks was product and software failure, and many of its customer contracts required them to carry an Errors & Omissions (E&O) policy. It was also approaching an IPO that would fund its expansion into new international markets and needed an insurance partner with global capabilities that could keep pace with its growth and evolving risks.
How Chubb helped
Firstly, Chubb crafted an Errors & Omissions policy that provided insurance protection for financial injuries arising from defects, deficiencies, or performance failure of a product, service, or software. Chubb has deep expertise and experience in the technology industry as it was one of the first insurers to recognize technology as a distinct industry with unique characteristics, risks, and exposures.
Secondly, Chubb’s risk engineers conducted a survey with the client to assess their business risks. North American and Global expansion required a review of new facilities, a closer look at the exposures that differ from region to region, and the hazards of increased employee business travel. To help minimize their exposures, Chubb advised the client that they needed:
- More clarity in their supply chain vulnerabilities and solutions. That is, a more thorough understanding of what would happen if a supplier failed, and how to handle that event.
- A business continuity plan for their main facility. Having a written strategy and alternate arrangements in place if production halts due to fire, flood or other disaster helps to minimize business interruption.
- Risk mitigation around workers’ compensation exposures. For example, helping to prevent employee repetitive motion injuries, whether from working at a desk or on the assembly line.
Enabling growth
As this solar tracking company grows rapidly, Chubb is there to help minimize the risks of their expansion. As our client helps track the sun to mitigate climate change, Chubb is there to protect against their evolving exposures.