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Wind power – Insurance solutions for stormy times

Technical challenges, adverse weather conditions as well as high investment and operation costs are unsettling both contractors and investors. Our solution: insurance products for individual, project-related risks for all players in the on- and offshore wind industries.

During the construction and operating phases, wind farm projects are generally covered against physical damage, accidents and natural hazards. There are several “traditional” insurance products available for this, but our solutions go further: Munich Re offers manufacturers and suppliers of wind turbine generators (WTG) our support in dealing with losses that can have a serious impact on the performance of their businesses. 

We have collaborated closely with wind-energy players, investors, developers and lenders to identify coverage gaps that may cause financial stress to the wind projects and their value chain.

4 reasons you should consider talking to us:

1. You need to meet guarantee obligations even if you suffer large serial losses.

Serial losses may occur when new technologies are phased into production. For example, the components of a wind turbine generator could entail hidden defects that often remain undiscovered until the components have been commissioned and begun operation.

In case of a systematic failure (serial loss), the bundle of defective components cannot be replaced immediately as the disassembly and reassembly takes time, and there is only a limited number of specialists with the required equipment available. The loss suffered by the operator – or by the manufacturer during the guarantee period – may constitute a financial burden.

Our approach is to provide the wind industry with insurance protection against large technical losses:

  • Serial losses cover: Our cover provides financial certainty to wind turbine manufacturers (OEM) and to suppliers of high-value components like gearboxes, rotor blades and other tower components. Partnering with Munich Re would also enhance the credibility and value of your guarantees.
  • We cover preventive maintenance: Our cover also applies to losses arising from serial loss events which have not yet resulted in any material damage, or component suppliers not fulfilling the guarantees on defective components. 

Overcome a technical large loss scenario: Talk to us.

2. Your offshore projects is delayed due to adverse weather conditions.

We protects stakeholders against an overrun of the planned project schedule (including expedient weather buffers) and the resultant additional costs. To offer you the best solution, we cooperate with the Fraunhofer Institute IWES in Bremernhaven/Germany and use their professional weather analyses.

Based on the weather risk assessment project for wind farms from the Fraunhofer IWES Institute, we work with you to devise a suitable insurance structure using historical weather data. Among other things, this involves defining parameters such as weather-related trigger values for downtimes (loss event); project planning and time buffers (deductible); and specifying the rates for ship and crew (indemnification rate).

Don’t let downtimes ruin your financial results: Talk to us.

3. You want to be financially protected against wind turbine failures.

Independent service providers (ISP) could run the operation and maintenance (O&M) of wind farms, but usually avoid the responsibility and the associated costs for major component replacements. The repair or replacement of many major components, considered unscheduled maintenance, becomes a crucial part of the financial plan of a wind farm. 

The Operation and Maintenance (O&M) cover, combined with an ISP contract, closes the gap between the full-service agreement provided by the wind turbine manufacturer (OEM) and the more basic service agreement from the ISP contractor. The Operation and Maintenance cover provides financial coverage in case of an unforeseen overrun of O&M expenses due to large technical problems in the wind farm.

Munich Re offers the O&M cover to owners and investors of newly planned wind farms with a timeframe of up to ten years of operation. The coverage includes unforeseen and unscheduled maintenance costs, which substantially exceed best-estimated reserves in the wind farm business plan. Additionally, we offer coverage against loss of revenue due to downtimes resulting from the replacement of insured major components.

Don’t let wind turbine failures stop you from achieving good financial results: Talk to us.

4. You are an EPC contractor and need protection against large warranty claims.

EPC contractors, especially in offshore wind, play an important role in the overall project. The work packages could be worth more than €1bn including the supply and installation of the wind turbines, foundations or cables. While large warranty claims are rare, they can have serious implications for EPC contractors and suppliers. Conventional CAR and Operational Covers (OC) focus on physical damages in the construction and operational phases, but most times they fail to cover the complex and costly defect liabilities assumed by EPC contractors and component suppliers. Traditional insurance products usually do not cover the EPC contractor liabilities for the rectifications of warranty defects, and large serial failures.

Munich Re’s new EPC cover protects EPC contractors and component suppliers against the impact of large warranty claims due to faulty construction (certified design), faulty material, faulty production or bad workmanship, for a period of up to five years.

Reduce your warranty reserves: Talk to us.


  • Serial Loss Cover
  • Offshore Logistics Cover
  • Operation and Maintenance (O&M) cover
  • EPC Cover
  • Lack of Wind
Industries covered: Renewables, Energy

Please contact us to discuss your specific situation. We look forward to speaking to you about a solution tailored to your risk situation.

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.