|Lexington Insurance Company to Insure Alternative Energy Tax Credits|
NEW YORK – May 18, 2011 – Lexington Insurance Company, a Chartis company, today announced the introduction of ITC Energy – 48SM, its Energy Investment Tax Credit insurance program, which consists of ITC Energy-48SM Mobile Property Insurance and ITC Energy-48 SM Professional Liability Insurance. This new suite of products is designed to protect owners, developers and investors against financial losses arising from the loss or damage to energy property. It also responds to the resulting recapture of investment tax credits that were granted for such property, pursuant to Section 48 of the Internal Revenue Code (IRC).
ITC Energy-48 Mobile Property Insurance provides replacement cost coverage for direct physical loss or damage to mobile energy property. In addition, the coverage reimburses insureds for any resulting loss or recapture of energy investment tax credits. The policy also reimburses the insured for the cost of fines and penalties that may be assessed by the IRS relating to the recapture of investment tax credits. ITC Energy-48 Mobile Property Insurance extends coverage for business interruption loss, inclusive of unbundled renewable energy certificates sold to third parties, as well as any production tax credits taken in lieu of investment tax credits. Coverage is extended as well for energy property while it is in transit between scheduled locations. Insureds can elect multi-year policies to cover their exposures during the 5-year tax credit compliance period.
ITC Energy-48 Professional Liability Insurance provides defense and indemnity coverage for the errors and omissions of a policyholder who is managing, operating and maintaining energy property. This coverage is structured to respond to professional liability claims from limited partners seeking recovery for the loss or recapture of investment tax credits as a result of non-compliance with the requirements of Section 48 of the IRC. Policies are issued on an annual basis.
“Investment tax credits are a significant source of return for investors in alternative energy projects. Lexington’s ITC Energy-48 Insurance Program is designed to insure energy property against casualty losses as well as the loss of investment tax credits due to a casualty loss or non-compliance with the IRC,” said Liz Carmody, Senior Vice President of Lexington Insurance Company.
For more information, please contact Edward Fox, Property Product Line Manager, at (617) 235-8970 or firstname.lastname@example.org; or Christian Andrews, Casualty Product Line Manager, at (617) 330-8469 or email@example.com. You can also visit www.lexingtoninsurance.com.
Chartis is a world leading property-casualty and general insurance organization serving more than 70 million clients around the world. With one of the industry’s most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.
Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at http://www.chartisinsurance.com. All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.