Insurance
Home›Insurance›Industry & Deals›Energy casualty underwriters press brokers to scrutini…
Energy casualty underwriters press brokers to scrutinize contracts
EIA forecasts US electricity generation will rise 2.2% in 2026 to 4,368 billion kilowatthours, adding to a growing, more complex liability footprint.
Insurance Business reports that energy casualty underwriters are asking brokers to take a closer look at coverage contracts as US energy infrastructure expands and becomes more complex. Markel’s Sean England said newer and rapidly evolving technologies are creating uncertainty around liability, coverage limits, and how contractual risk is transferred.
The outlet pointed to government forecasts and project pipeline growth that are increasing demand and expanding who is involved in energy projects. US electricity generation is expected to rise 2.2% to a record 4,368 billion kilowatthours in 2026, followed by a 1.7% increase in 2027, according to the Energy Information Administration.
Insurance Business also cited planned utility-scale capacity additions for 2026, including a record 86GW of new generating capacity. That total includes 43.4GW of solar and 24GW of battery storage, with solar accounting for just over half of planned additions.
As more equipment manufacturers, software systems, operations and maintenance providers, and asset owners become intertwined in the same projects, the resulting liability chain can be difficult to untangle when equipment fails, especially given that newer technologies have less claims and litigation history, the article said.
The story notes that energy underwriters must therefore assess both rapidly evolving technology and a liability environment that can increase the eventual cost of claims.