Broker and MGA enhances syndicated offering to provide insurance capacity for the build out of battery energy storage systems across Europe and Australia
Additional asset protection during construction enables BESS developers to benefit from NARDAC’s technical guidance on contractor and equipment procurement in fast growth markets
London, 15th October 2025 – NARDAC, the specialist energy and infrastructure broker and Managing General Agency (MGA), has today announced that it is now offering underwriting services for the construction of battery energy storage systems, complementing the operational cover its facility is already providing to BESS owners and operators. The additional Construction All Risks (CAR) cover will mean BESS developers will benefit from insurance capacity to cover natural perils during construction, and higher risk phases in project commissioning during hot testing.
Additionally, NARDAC is expanding the geographic reach of its underwriting solutions for BESS, which will now be available across Europe and Australia, building on current coverage provided in the UK and U.S. With rapid growth in battery energy storage deployment in Germany, Benelux, Spain, Italy, Bulgaria and Poland, NARDAC is supporting clients move from the development of single sites to portfolios of operational battery assets.
As the European BESS market continues to expand, competitive BESS auction tenders – recently seen in Italy and with more planned in Estonia and Portugal in the coming months – will drive project prices lower, forcing developers to look at their insurance options competitively. A commensurate increase in dual or multi-contracting approaches will help project sponsors reduce costs during build-out, but will require comprehensive risk protection as liability shifts back to the contracting entity.
And while developers have worked consistently in recent years to ameliorate the specific risks of thermal runaway during operations – which can lead to total insurance loss – hot testing phases in project commissioning can experience internal short circuits, caused by manufacturing defects or damage during installation, which may lead to increased fire risks.
Similarly, European project construction is still vulnerable to climatic risks that can increase, for example, the chances of flash flooding on site – damaging equipment, foundations and leading to delayed start-up.
By bringing additional insurance capacity to fast-growth markets, NARDAC can support developers by offering asset protection that provides rapid financial recourse in the case of project damage, equipment failure and associated business interruption, meeting the risk protection stipulations of lending capital.
Announcing the new coverage, Robert Bates, Partner, NARDAC said: “Europe is in the midst of a BESS boom. We’ve exciting new markets, such as Poland, coming online, and more mature markets like Italy and Germany continuing to see consistent fast paced growth. What that means however is huge demand for BESS equipment and contractors. So, by offering construction insurance to BESS developers, we can play a direct role in ensuring the procurement of high-quality componentry and contractors with strong track records, advise upon and underwrite key construction risks, and ultimately reduce the potential for equipment failure during hot testing and subsequent project downtime and revenue loss.”
“And while natural catastrophe exposure is often front of mind during operational project phases, development can be significantly delayed by the increasing prevalence of flash flooding that damages project foundations and equipment gathered on site. We’re therefore keen to offer our insureds protection from flood risks, guiding them with specific site mitigation during the construction process.”
NARDAC’s capacity is provided by eight A-rated Lloyds syndicates and offers USD 50 million in lead market underwriting capacity to battery developers and operators, and 100% of smaller projects with up to USD 20 million capacity.
About NARDAC Insurance Services
NARDAC is a specialty wholesale, reinsurance broker, and Managing General Agency (MGA) that offers a unique combination of technical resources to successfully navigate the challenging and ever-evolving risk and insurance landscape.
Founded in 2020, the NARDAC team seeks to deliver innovative solutions at the nexus of broker consolidation, a frustratingly challenging underwriting environment, and a dynamic risk landscape. NARDAC understands that traditional approaches to insurance and risk management are increasingly ineffective and that creative, technical solutions will lead their clients towards a new risk transfer reality.
NARDAC leverages decades of experience in engineering, risk consulting, underwriting, and broking to create nuanced solutions and strategies for their clients. NARDAC seeks to establish a new benchmark for innovative service, disrupting a traditionally transactional business model.
NARDAC is a part of Amwins – a leading global specialist insurance distributor.