Munich Re is now offering coverage for offshore wind energy units as part of its renewable-energy service, including corresponding cover for a North Sea wind farm.
The protection covers the costs of deploying vessels needed for the offshore-industrial process. In conjunction with renewable-energy and maritime broker Nordwest Assekuranz, Munich Re has developed a five-year plan for retrofitting units in which defective parts have been installed, even if no damage has yet occurred.
"With this insurance solution, we are again breaking new ground in the cover of special risks for the booming offshore-energy industry. It marks a milestone in the field of major offshore wind projects,” says Thomas Haukje, managing partner of Nordwest Assekuranz.
The insurance also provides for the repair or replacement of defective turbines or individual components if they encounter serial losses affecting the gearbox, rotor, tower or other essential elements of the specialized vessel.
According to Marcus A. Wassenberg, chief financial officer of wind-turbine manufacturer REpower, the serial loss protection has enabled the company to mitigate the high costs of fixing turbines out at sea, helping REpower secure its guarantees and gain project financing.
“Serial-loss cover for offshore wind farms gives our customers certainty regarding the funding of major projects, and the insurance cover and the guarantee Munich Re provides with it testify to the quality of our wind-energy units,” says Wassenberg.
The reinsurer’s other products for renewable energy organizations include conventional property coverage, and will soon encompass specialty considerations such as losses relating to delays due to vessels being held onshore by bad weather conditions, and also loss of income if a vessel encounters less wind than projected.