Shepherd Writes Primary GL and Lead Excess on Biomass Power Facility in Minnesota
“Kennedy Rush has been an excellent underwriting partner throughout the process on this client. Shepherd was highly responsive, accessible and easy to work with, and the team stayed solutions-oriented and available to discuss coverage and underwriting considerations whenever we needed. The pricing was competitive and targeted. We appreciate the partnership and look forward to continuing to work with Shepherd and Kennedy on future opportunities!”
Placement Profile
- Program: Operational, single asset
- Primary GL: $1M / $2M / $2M
- Lead Excess: $5M
- Asset: 23.4 MW biomass combined heat and power facility in Minnesota
The client and the project
The insured operates a 23.4 MW biomass-fueled combined heat and power plant in Minnesota that has been running since 2009. The plant supplies heat and power to an adjacent industrial campus, and it can export power to the regional grid when market conditions are favorable. It runs on sawdust and other wood and agricultural waste, turning byproducts that would otherwise be thrown away into steady, renewable power.
Biomass isn’t new technology, and this facility’s long operating history is a big part of why. With more than 15 years of operations and a clean loss history, it’s the kind of established Renewable Energy & Power (RE&P) risk Shepherd wants to write.
How Marsh brought it together
The submission came from Marsh’s Houston Energy & Power team, where Shepherd already had a strong working relationship. That connection is what led Marsh to bring Shepherd into this renewal. Rudy Taylor led the placement, and the submission he sent was thorough from the start, with detailed safety information, plant process documentation and full loss runs.
The broker needed a market that could deliver the Primary GL and Lead Excess at the client’s target pricing. Workers’ Comp sat outside the program, so the structure had to work around it. Shepherd and Rudy stayed in close, near-daily contact throughout the deal. That kept questions moving and gave the broker a clear read on where the program was heading at every step.
What Shepherd did on this placement
Shepherd wrote the Primary GL of $1M / $2M / $2M and the $5M Lead Excess above it.
Biomass carries specific exposures that Shepherd’s underwriting team looked at closely: smoke hazard from combustion, and fire risk from the fuel stored on site. The facility’s loss controls addressed both directly. The plant has spark detection, fire suppression systems and documented safety policies in place, and Shepherd factored all of them into its underwriting. The location helped too. A single site in Minnesota carries low wildfire risk, which matters a great deal for a facility that stores combustible fuel.
Taken together, the operating history, the fire prevention technology and the no-loss record gave Shepherd confidence in the account. Shepherd turned the quote around quickly and hit the broker’s target pricing.
The outcome
The client now has a Primary GL and Lead Excess program built around how its plant actually operates, and Marsh has a market for biomass and similar RE&P risks that understands the exposures and moves quickly. Shepherd expects more opportunities with the same team. “Kennedy Rush has been an excellent underwriting partner throughout the process,” said Rudy Taylor at Marsh.
