Is biomass boiler insurance compulsory?

No, you aren't legally required to insure the boiler itself. However, employers' liability insurance is compulsory for businesses that employ staff. Finance providers and landlords may make insurance a condition of their agreement. Without cover, you'd have to fund repairs, replacement, and any lost income yourself.

Will my farm or business insurance cover my biomass boiler?

It may cover fire damage to the boiler and boiler house, but many policies don't include breakdown, lost RHI payments or the cost of temporary heating. Your insurer also needs to know you have a biomass boiler, because it changes the fire risk on your site. If it isn't declared, a claim could be reduced or refused.

Can I insure my RHI payments?

Yes, business interruption cover can include the RHI income you lose while your boiler is out of action after an insured event, such as a fire or breakdown. If your boiler needs replacing rather than repairing, Ofgem has specific rules on replacement plant, so check your position with Ofgem before you commit.

Does biomass boiler insurance cover breakdown?

Policies can include breakdown cover, which pays for sudden and unforeseen mechanical or electrical failure of your boiler and its equipment, such as augers, fans, ash extraction and controls. It won't cover gradual wear and tear, so insurers will expect your system to be serviced in line with the manufacturer's recommendations.

Do I need engineering inspections for my biomass boiler?

It depends on your system. Boilers that produce steam, or pressurised hot water above 110°C, are likely to fall under the Pressure Systems Safety Regulations 2000. These require a written scheme of examination and regular examinations by a competent person. Even where the regulations don't apply, your insurer may ask for evidence of regular servicing. Our engineering inspections team can tell you what you need and carry out the inspections for you.

Biomass Boiler Insurance | Alan Boswell Group

Name: Biomass Boiler Insurance
Brand: Alan Boswell Group
Rating: 4.8 (13290 reviews)

Biomass Boiler Insurance

Cover for your non-domestic biomass boiler, fuel store, and the income it earns, protecting your business if a fire, explosion, or breakdown takes your heating offline.

Cover for commercial biomass systems

Protection for your boiler house, fuel store, and fuel stock

Liability cover if you supply heat to tenants, holiday lets, or other businesses

Biomass boiler insurance protects your boiler, the building it's in, the fuel that goes with it, and the income your heat generates. It can cover the cost of repairing or replacing your system after a fire, explosion, or breakdown. It can also cover the Renewable Heat Incentive (RHI) payments you would lose if the boiler is out of action, and your legal liability if someone is injured or their property is damaged. Your existing property insurance may have some cover or may exclude it altogether. We can help you determine the gaps and help you fill them if necessary.

The Alan Boswell Group Difference

Biomass boilers are often added to a farm or commercial policy as an afterthought, and that can leave gaps in cover. Many standard policies don't cover mechanical or electrical breakdown, lost RHI payments or the cost of hiring in temporary heating. Some insurers are also wary of the fire risk that comes with burning and storing wood fuel.

We've worked with the renewable energy sector from the outset and understand how these facilities work and insurers' safety requirements. Our specialist account executives look at your whole set-up, from the boiler and fuel store to the heat you sell, and use our wide panel of insurers to find the right cover. Through Alan Boswell Risk Management (ABRM), we can also help with engineering inspections and health and safety support, so you're less likely to need to claim in the first place.

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

Biomass boiler insurance in detail

Biomass boilers are built to run for long periods with little supervision. They heat everything from farmhouses, poultry sheds, and grain dryers to glasshouses, holiday lets, and estate properties. They also come with risks you won't find with an oil or gas system.

When a boiler stops, the costs add up quickly. Non-domestic RHI payments stop when your boiler does, and you may also need to hire in temporary heating for livestock, crops, or tenants. A standard business interruption policy is unlikely to cover these losses.

Biomass boiler insurance is built around your system and can include:

Material damage

Cover for your boiler, boiler house, fuel store, feed system, flues and pipework, plus the fuel you have in stock. It protects against fire, explosion, storm, flood, theft and accidental damage.

Boiler explosion

Cover for damage caused by the explosion or collapse of your boiler or its pressure vessels, including damage to the surrounding buildings and equipment.

Machinery breakdown

Breakdown cover pays to repair or replace equipment that fails suddenly and unexpectedly, such as a burnt-out auger motor or a failed control board. Wear and tear isn't covered, so it's important to keep up with servicing.

Business interruption and lost RHI income

If an insured event takes your boiler offline, business interruption cover can replace the income you lose, including RHI payments, for the indemnity period you choose. Our guide to indemnity periods explains how to choose the right length of cover.

Temporary heating and increased costs

Cover for the extra costs of keeping your business running while your boiler is repaired, such as hiring a temporary boiler and buying in fuel.

Employers' liability

Businesses that employ staff are legally required to have employers' liability insurance to cover claims from employees injured at work.

Additional covers available

Employers' liability

Businesses that employ staff are legally required to have employers' liability insurance to cover claims from employees injured at work.

Environmental liability

Pollution isn't only a risk for large industrial sites. Oil from a backup boiler, water runoff after a fire, or ash disposed of improperly can all damage the environment. Environmental impairment liability insurance covers clean-up costs and third-party claims.