Description

During the 1990s and early 2000s, I was an insurance broker /advisor for up to seven electric utility companies in the region. In those days, everything involved with an electric utility was extensive and complex compared to other typical business operations in our various countries.

Here are the key insurance and risk issues for those electric utilities during that period.

1. Massive power plants
2. Huge buildings to contain them
3. Many employees, with some involved in high-risk activities
4. Very high Revenues as each country had one company as the sole provider of electricity in the country
5. Heavily regulated industry
6. Extensive and highly vulnerable power transmission systems (overhead cables and poles)
7. The breakdown of large power plants had severe consequences unique to that industry
8. Single Liability risk events could create widespread losses
9. Interruption of power production could create significant revenue loss