Long Term Outage Insurance

ACE PowerBacker LTO^SM is insurance protection designed specifically for generating owners to protect against long term outages. This product is designed to meet the demand for a solution to negative earnings shocks that result from extended generation outages. LTO is appropriate for anyone that owns generating units.

PowerBacker LTO, after a waiting period or a self insured retention, provides a specified indemnity for each unit insured. This program is a stand-alone program not linked to a property policy. The amount of indemnity can be set to cover the particular exposure you need covered, including cost of forward purchased power, debt payment, fixed costs, or alternative fuel costs. Waiting periods are flexible, as are policy duration and indemnity periods. Waiting periods as low as 30 days are available; losses can be covered for a full 365 day period following the waiting period.

The basic idea of PowerBacker LTO is simple. Once an unplanned outage begins and the waiting period or self insured retention ends you begin to receive the full amount of the outage value for each day (or other unit) of outage. Since the amount of the outage value is stipulated, the claims process is simple. Please see the policy for full coverage details.

Frequently Asked Questions