Independent Power Producer Locks in Build-to-Operate Coverage with Shepherd
The client and the project
The client is an independent power producer (IPP) building a natural gas power plant in a remote part of the Southwest. The build is being handled by an experienced contractor with a strong track record.
For a greenfield power asset, the placement is not just about getting through construction. The client needed a carrier they could carry into the operational phase, so they don’t have to go back to the market the moment the build is complete.
Shepherd’s Build-to-Operational Solution
Shepherd wrote the $2M Owner's Interest General Liability plus a $10M Lead Excess for the construction phase. The quote turned around in just 12 hours after receiving the complete project information, the policy specimen was shared up front for full transparency on terms, and Shepherd’s commitment to writing the operational placement once construction wrapped was a difference maker.
The Broker Placement Challenge
A new-build power asset in a remote venue with an experienced contractor is a placement most markets will want a look at. But the broker was solving for more than just the build, they needed an Owner's Interest General Liability plus a Lead Excess for construction from a market that would commit to writing the Operational coverage once the asset came online. Providers willing to commit on both sides of that lifecycle are not common.
The broker also needed a market that would be transparent on terms up front. On a new-build with project-specific contract wording, surprises in the policy form at bind time create real problems with the owner and the contractor.
Meeting the Moment for the Broker
The submission came through a major national broker's west coast office. Shepherd met with the broker's leadership and the team had socialized appetite internally. The account surfaced from that internal awareness. Shepherd’s Renewable Energy launch in January was also top of mind.
The placement moved on the strength of three things the broker could put in front of the insured. Shepherd shared the policy specimen up front, so the contract wording on the Owner's Interest could be reviewed before any commercial discussion. Shepherd's underwriting team communicated swiftly about what they needed from the broker and the insured to move forward. And Shepherd committed to writing the Operational placement once construction wrapped, giving the insured the single-carrier continuity from the build into operations they were looking for.
The Outcome
The broker placed a build-to-operate carrier on a remote new-build asset, which means the producer will not be back in the market the moment construction ends. Transparency on terms removed surprises at bind, and the operational commitment is the relationship lever that will keep this account on Shepherd's paper after the project comes online.
