Munich Re is now offering coverage for offshore wind energyunits as part of its renewable-energy service, includingcorresponding cover for a North Sea wind farm.

The protection covers the costs of deploying vessels needed forthe offshore-industrial process. In conjunction withrenewable-energy and maritime broker Nordwest Assekuranz, Munich Rehas developed a five-year plan for retrofitting units in whichdefective parts have been installed, even if no damage has yetoccurred.

“With this insurance solution, we are again breaking new groundin the cover of special risks for the booming offshore-energyindustry. It marks a milestone in the field of major offshore windprojects,” says Thomas Haukje, managing partner of NordwestAssekuranz.

The insurance also provides for the repair or replacement ofdefective turbines or individual components if they encounterserial losses affecting the gearbox, rotor, tower or otheressential elements of the specialized vessel.

According to Marcus A. Wassenberg, chief financial officer ofwind-turbine manufacturer REpower, the serial loss protection hasenabled the company to mitigate the high costs of fixing turbinesout at sea, helping REpower secure its guarantees and gain projectfinancing.

“Serial-loss cover for offshore wind farms gives our customerscertainty regarding the funding of major projects, and theinsurance cover and the guarantee Munich Re provides with ittestify to the quality of our wind-energy units,” saysWassenberg.

The reinsurer's other products for renewable energyorganizations include conventional property coverage, and will soonencompass specialty considerations such as losses relating todelays due to vessels being held onshore by bad weather conditions,and also loss of income if a vessel encounters less wind thanprojected.