CNA Europe is one of the leading insurers in the wind energy sector, providing a range of products and services for onshore and offshore wind projects, delivered with the knowledge and experience that you would expect from a trusted global insurance partner.
Principal Coverages
CNA provides a seamless policy for construction and operational phases. The key risks begin at the construction phase, including transit of the equipment to site, erection and testing, delay in start-up and finally operational property damage and business interruption. We provide seamless, complete cover designed to avoid any gaps or overlaps between the different phases of the project.
Material Damage
Construction and erection
This cover protects the insured, financiers, all contractors and sub-contractors and professional consultants in respect of all risks of loss, destruction or damage to the permanent or temporary works, materials, goods, plant machinery and equipment used in connection with the design, construction, erection, commissioning and testing of the project.
Property
This cover indemnifies the insured and financiers against all risks of loss, destruction or damage to the property and other assets owned by or the responsibility of the insured.
Financial
Advance Loss Of Profits
This section of the cover protects the insured and financiers against additional costs, expenses, finance charges and loss of anticipated income following delays in completion as a result of loss, destruction or damage to property insured under the Construction and Transit cover.
Business Interruption
Business Interruption indemnifies the insureds and financiers against additional costs, expenses, finance charges and loss of income following interruption to the insured business as a result of loss, destruction or damage to property insured under the Property cover.
Legal liability
Public and Products Liability
This cover indemnifies the insured and financiers (and where appropriate all contractors, sub-contractors and professional consultants) against all sums for which they may become legally liable (including claimants’ costs and expenses) in respect of:
Death or bodily injury to or disease contracted by any person
Loss of or damage to property
Interference to property or the enjoyment of use by obstruction, trespass, loss of amenities, nuisance or any like cause; arising out of the insured projects and operations
Additional covers
In addition to the cover shown above, there are a number of other important insurance products available including:
Construction plant and equipment
It is possible to extend the project insurance programme to include loss, destruction or damage to construction plant and equipment, tools, personal effects of employees and temporary buildings and contents used during the project. Such items are normally the responsibility of the contractor and are either owned by him or hired in specifically to undertake the project work.
Marine transit
Marine transit insurance protects the insured and financiers against all risks of physical loss, destruction or damage to materials, goods, plant and equipment intended for use in connection with the project whilst in ocean or land transit (including temporary off-site storage) within agreed territorial limits. Transits are often for parts manufactured globally that are transported and assembled locally. The cover is in force from the time the goods leave the manufacturer’s premises until the time of arrival at the project site, including any storage during the normal course of transit. If any intentional storage coverage is required, this can be accommodated subject to material information being supplied. The policy is normally designed to dovetail with the Construction Insurance to ensure that there are no gaps in cover during the transit operations.
Marine consequential loss
If Marine transit coverage is required, it would be necessary to combine it with cover for delay in start-up (DSU) against additional costs, expenses, finance charges and loss of anticipated income following delay in completion as a result of loss, destruction or damage to items during transit. An indemnity period representing the maximum probable delay to the EPC Contract as a result of damage to or loss of such items will need to be selected. With the increasing role of project finance, this coverage is particularly important for banks.
Legal Liability
Professional indemnity
Contractors and consultants normally fulfil the requirement for Professional Indemnity insurance protection by way of annual renewable insurance programmes. Although there are alternative ways of procuring this cover, such as within a project specific programme covering all parties with a design responsibility, we would not recommend this approach Rather, we advise to utilise the existing insurances of the contractor and consultants, but require them to effect an agreed level of Professional Indemnity cover and maintain it for a specified period.
Employer’s liability and workmen’s compensation
Most owners and operators will need this insurance to cover the workforce who maintains the turbines. There are particular risks here relating to employees working at height and the obvious risks of maintaining offshore facilities.
Key risks
We have identified the following key risk areas that you will need to consider as part of your wind energy programme:
Start-up delays
Delay to the scheduled date of commencement as a result of damage to equipment while in transit or installation damage.
Construction site access
Developments in remote or mountainous areas require careful preparation of roadways. For example, we can assess gradients and access routes to prevent accidents and delays during delivery of nacelles and blades.
Cable laying
The method and preparation for laying cable around turbines and to substations will influence the cost and the level of cover required. Most cables are laid underground in well prepared trenches.
Wind force disruption
During the construction phase and also repair work, the impact of high wind conditions requires careful evaluation. Clients need to ensure that they adhere to the specific regulations relating to the use of cranes during high winds.
Lightning damage
This is the most common exposure for operating turbines. We require proof that blades and towers have good quality lightning protection. Working with a major blade supplier, our team has measured and quantified blade strikes, helping to develop strategies that mitigate damage levels.
Natural catastrophe
When tailoring protection, a thorough evaluation of the local topography is needed. CNA Europe’s experience is supplemented by studies of complex earthquake activity worldwide. This enables us to produce comprehensive loss assessments and post-loss procedures to help wind farm clients minimise expected loss cost and therefore premiums.
Ground and soil conditions
Knowledge of the soil and geological surveys is a requisite for insurers when evaluating the risks associated with piling for tower constructions or laying cable.
Technology
Whereas cover for machinery breakdown is standard, series type losses are often excluded (i.e. identical failures on multiple units). Proposed turbines with limited operating experience may be considered as prototype. As a result, cover can be restricted, affecting a project’s creditability and stakeholder investment. For risk transfer, CNA Europe can help project owners demonstrate both to investors and the markets that there is a robust risk management strategy in place. We also assist developers review manufacturers’ guarantees, sourcing cover to complement and avoid gaps in protection.
Substations and power delivery
Time element losses from the malfunction of the wind farm or substation down-time can become disproportionately high. We work with our clients to reduce loss potential by analysing transformer and generator down time and the replacement of parts. This research is already delivering beneficial and cost-effective solutions.
Our aim is to provide a holistic approach to the wind energy sector by combining multiple lines of coverage within a single offering. We understand the complexities of new and emerging technology and aim to provide tailor-made structures to support the insurance needs of our wind energy clients.
This product is underwritten from our offices in Amsterdam, Brussels, Copenhagen, London, Paris and Milan.
This product is available on a freedom of services basis in Belgium, Ireland, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, United Kingdom.
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