Will my farm insurance cover my anaerobic digester?

Some smaller on-farm plants are added to a farm policy, but that may not cover breakdown or the income you lose while the plant is down. Breakdown cover is rarely available on its own for an AD plant, so specialist cover for the whole plant is usually the better option. We'll review what you have and explain any gaps.

What is loss of biology cover?

It covers the cost of restoring your digester's biological process after an insured event, such as a breakdown that causes the digester to cool. That can include emptying and cleaning the digester, buying new seed material, and bringing it back up to temperature. Terms vary between insurers, so we'll explain exactly what your policy includes.

How long should my indemnity period be?

Your indemnity period should reflect how long it would take to repair or replace your key equipment and return to full output. For many AD plants, that can be over 12 months, because specialist engines and parts can have long lead times and the biology needs time to recover. Our guide to indemnity periods explains what to consider, and we'll help you set a realistic figure.

Energy prices have changed. Do I need to review my cover?

Yes, your business interruption sum insured should reflect the income you'd actually lose if the plant stopped. If electricity, gas, or biomethane prices change significantly, your cover may no longer be sufficient. We'll review your figures with you at renewal, or sooner if prices change dramatically.

Do I need engineering inspections on my AD plant?

In most cases, yes. Compressors, gas upgrading equipment, and other systems holding gas above 0.5 bar are likely to fall under the Pressure Systems Safety Regulations 2000. Any lifting equipment also needs regular, thorough examination under LOLER. Our engineering inspections team can identify what needs inspecting and carry out the inspections for you.

What affects the cost of anaerobic digestion plant insurance?

Premiums depend on the size and output of your plant, the feedstock you process, the technology you use, and whether you generate electricity, heat, or biomethane. Insurers will also look at: your maintenance regime and spare parts fire and gas detection secondary containment site security and claims history

Anaerobic Digestion Plant Insurance

Name: Anaerobic Digestion Plant Insurance
Brand: Alan Boswell Group
Rating: 4.8 (13290 reviews)

Specialist cover for farm and commercial AD plant, protecting your digesters, engines, and income from construction through to full operation.

Cover for digesters, tanks, CHP engines and gas upgrading equipment

Covers lost income from power, heat and gas sales, gate fees and incentive payments

Clean-up costs and third-party claims after a digestate spill or leak

Advice and cover from design and build through to commissioning

Anaerobic digestion (AD) plant insurance is specialist cover for AD plants that turn slurry, manure, crops, and food waste into biogas, electricity, heat, and biomethane. It protects the plant, the income it generates, and your liabilities, including the clean-up cost of a digestate or feedstock leak.

The Alan Boswell Group Difference

Smaller on-farm digesters are sometimes added to a farm insurance policy, but that won't usually cover plant breakdown. It's also rarely possible to insure an AD plant for breakdown alone. Specialist cover for the whole plant is the safer route, not least because business interruption is where we see the most claims from AD operators.

We've insured anaerobic digestion plants since the early days of the UK industry. Spring Farm in Norfolk, for example, insured its plant with us from the day it went online in 2010. Our specialist account executives work alongside Alan Boswell Risk Management (ABRM), whose team can support you with health and safety and engineering inspections. Insurers trust us to give them accurate information about the plants we insure, which helps us secure the right cover on the right terms.

How our customers rate us

Andrew provided a first class service. He spent time understanding our business and was fully supportive throughout the process.

Mr Newman - Commercial Combined Insurance

4.8/5 13290 reviews

Anaerobic digestion plant insurance in detail

AD plants combine biological, mechanical, and electrical processes, and a problem in one part can quickly bring the rest to a halt. If your CHP engine or gas upgrading unit fails, you can't export power or gas, and you may have to flare off biogas. It can then take days to restore to full output. Some engines and specialist parts take months to source, so a breakdown can lead to a prolonged period of lost income.

There are also strict rules to adhere to; AD plants need either an environmental permit or an exemption, and the Environment Agency has strengthened its requirements for secondary containment around tanks holding digestate and other liquids. Under the 'polluter pays' principle, if digestate escapes into a watercourse, you're responsible for fixing it. Public liability insurance does not cover pollution that happens gradually.

If you're building a new plant, it's important to involve your broker or insurer at the planning stage to ensure the insurer's safety requirements are incorporated into the building's construction.

Anaerobic digestion insurance is built around your plant and can include:

Material damage

Cover for your digesters, tanks, gas holders, CHP engines, upgrading equipment, control systems, and buildings. It protects against fire, explosion, storm, flood, theft, and accidental damage. We'll also check that your policy wording properly covers concrete and steel tanks and their contents, since standard definitions and exclusions don't always reflect how AD plants are built.

Machinery breakdown

Insurers will want to see a documented maintenance plan, particularly for engines.

Loss of biology

If the biological process in your digester fails after an insured event, such as a breakdown that leads to the digester cooling, you may need to empty, clean, refuel, and reheat it before it produces gas again. Loss of biology cover can pay for this process, while business interruption covers the income you've lost.

Environmental liability

Cover for the cost of cleaning up pollution from your site, such as a digestate spill or a leaking tank, along with third-party claims and legal defence costs. Environmental impairment liability insurance also covers gradual pollution that public liability won't.

Public and products liability

Cover if your operations injure someone or damage their property. If you sell or supply digestate as a fertiliser, products liability protects you if it's alleged to have damaged someone's crops or land.

Employers' liability

Businesses that employ staff are legally required to have employers' liability insurance.

Business interruption

If an insured event stops or slows production, business interruption cover can replace the income you lose from:

electricity, heat and gas sales
gate fees
payments under schemes such as the Feed-in Tariff, Renewable Heat Incentive and Green Gas Support Scheme

It can also pay the extra costs of getting back up and running. Cover can be extended to losses caused by damage at your utility supplier or at the substation that connects you to the grid.

Construction and delay-in-start-up

If you're building a new plant or expanding an existing one, we can arrange contract works cover during construction, testing, and commissioning. We can also arrange delay-in-start-up cover to protect the income you expect to earn if an insured event delays your go-live date.

Many insurers won't cover an AD plant unless certain standards and processes are followed during design and build, so it's important to involve your broker or insurer at the planning stage if you're building a new site.

Get in touch

Whether you need a quote, have a general enquiry, want to register a claim, or want to talk it through over the phone, we're here to help.

Speak to us: 01603 218000

Anaerobic Digestion Plant Insurance

The Alan Boswell Group Difference

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