Marsh offering tax investment default insurance

Marsh LLC Tuesday said it has launched tax investment default insurance to cover default related to federal tax credits tied to U.S. renewable energy projects.

Tax investment default insurance solution was created to protect developers against the risk of default should a tax credit investor become unable or unwilling to fulfill its financial obligation once the tax credits are generated.

The coverage is designed for renewable energy project developers which transfer future tax credits to investors, Marsh said in a statement.

Limits are “dependent on the investor and transaction,” according to an email from a spokeswoman, which added the broker can “meet the needs of most developers.”

The new policy form is supported by A-rated underwriters including Everest Insurance Co., the statement said.

David Kinzel, senior vice president, structured credit and political risk for Marsh, said in the statement that the transferability of tax credits plays an essential role in the growth of the renewable energy market.