In the last decade, we have heard about more and more countries and organizations joining initiatives to reduce air pollution and the environment. Among other things, due to the serious consequences of that pollution on global warming and the health damage caused to many due to the polluting substances emitted by transportation, factories, and industry.

At the same time as trying to reduce the emission of polluting substances, many cleantech companies can be seen developing advanced technologies and products based on alternative energy sources, such as electric cars and solar panels.

The cleantech field, which is gaining momentum worldwide, also exposes the companies involved in the field to quite a few risks and exposures to lawsuits due to the many factors that directly and indirectly use their products. In order to help cleantech companies reduce risk and promote their activities in the best way, cleantech insurance was created.

What does cleantech insurance include?

Directors’ and Officers’ Liability Insurance – The senior officials in the cleantech companies are exposed to many personal lawsuits due to alleged negligence claims within their duties from investors, customers, and other third parties, and employees within the framework of employee-employer relations. The aforementioned insurance is intended to indemnify them in the event of regulatory investigations, initiation of legal proceedings against them, a court ruling requiring them to pay compensation, and more.

Professional Liability Insurance – When cleantech companies have become the hot thing in the investment world in recent years, and when more and more investors, entrepreneurs, government clients, and various parties are involved in their activities, the risks they themselves take are also increasing. The legal exposure to lawsuits, investigations, and various legal proceedings requires the company itself to take out professional liability insurance, which will allow it to be compensated and indemnified in these cases.

Product Liability Insurance – The various products that cleantech companies provide millions of people every year increases the risk of physical or mental injuries, which may be caused to customers while using those products, even after they have left the company’s holding. Product liability insurance gives them coverage against various lawsuits, the demand for compensation, and the investigations by the governments, which may occur as a result.

CGL Insurance – Many of the cleantech companies today have a significant international activity, which obliges them to adjust the insurances and coverages they provide because the existing ones do not always provide protection, even in overseas activity. CGL insurance includes coverage for negligence claims due to bodily or property damage caused to a third party due to the use of the company’s products or services abroad. When it also includes coverage in case the company is sued due to damage to the good name of a certain person or entity.

Pollution Insurance (CPL) – As part of their various activities, cleantech companies may be exposed to environmental and pollution claims. Pollution insurance covers claims that will be filed against them arising from pollution-related activities.