Biden's plans for offshore wind energy projects is a boon for insurance

A wind turbine farm. (Photo: Blue Planet Studio/stock.adobe.com)

President Joe Biden issued an executive order to install enough offshore wind capacity off the Atlantic, Pacific and Gulf coasts to produce 30,000 megawatts (MWs) of energy. This proposal will create high-paying jobs, reduce carbon emissions and make the U.S. a leader in the renewable energy industry. It will also create an opportunity in the insurance market to supply property and liability coverage for the construction and operation of offshore wind farms (OWF) and specialty wind turbine installation vessels and the construction, expansion, and operation of ports and terminals.

To reach the goal of 30,000 MWs offshore wind capacity, an estimated 2,000 of the latest, state-of-the-art, 15 MW wind turbine generators (WTG) will have to be installed. At an estimated installed value of $45 million each, that would equate to $90 billion in TIV needed in the OWF construction insurance market. If delay in completion coverage is included, that could add another $20 billion in values. A similar amount of insured values will be needed once the WTGs are operational.  To support the projects, there will be a need for marine surveyors to attend during construction to complete Marine Warranty Surveys, conduct cargo surveys, and inspect associated vessels and equipment.