Why Insurance is the Secret Weapon for Businesses Diving into the Hydrogen Industry

How Businesses are Entering the Hydrogen Industry with Insurance Support
The transition to a low-carbon economy is in full swing, and businesses are increasingly looking at hydrogen as a key element in achieving net-zero emissions. However, as with any emerging industry, the hydrogen sector presents unique challenges, particularly when it comes to risk management and insurance. Addressing these challenges, Zurich Insurance Group and Aon have launched a pioneering clean energy insurance facility tailored for hydrogen projects, positioning themselves as leaders in facilitating this green transition.
A New Insurance Frontier for Hydrogen Projects
Zurich Insurance Group, a global leader in insurance solutions, and Aon, a renowned professional services firm, have introduced a comprehensive insurance facility specifically for blue and green hydrogen projects. This initiative is designed to cater to projects with capital expenditures of up to $250 million, providing bespoke coverage that addresses the myriad risks associated with hydrogen production and distribution.
Key Features of the Insurance Facility
- Comprehensive Coverage: The facility offers a multi-line, integrated policy covering everything from construction and delay in start-up, to business interruption and third-party liability. It’s a robust solution crafted to support hydrogen projects throughout their lifecycle.
- Specialized Expertise: With Zurich as the lead insurer and Aon as the exclusive broker, the facility benefits from deep industry expertise and support, ensuring that policyholders receive unparalleled guidance and coverage.
- Net-Zero Commitment: This initiative aligns with Zurich’s broader commitment to the net-zero transition, reflecting their strategic focus on customer engagement and product innovation to support sustainable energy projects.
- Wide-Ranging Protection: The facility not only covers traditional risks but also extends to new technologies like carbon capture, utilization, and storage (CCUS), underscoring its comprehensive approach to risk management in the hydrogen sector.
- Market Readiness: The strong interest from participating insurers highlights the market’s growing appetite for sustainable solutions and the insurance industry’s readiness to underwrite new risks associated with the hydrogen economy.
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