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Offshore wind park insurance
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Offshore wind park insurance

Risk-transfer solutions targeting contractual warranties for off-shore wind projects

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    Munich Re’s offshore EPC cover insurance mitigates contractual warranties for offshore wind contractors (EPC & T&I), manufacturers and suppliers after project hand-over

    Transfer individual project-related risks

    Technical challenges, adverse weather conditions as well as high investment and operating costs are unsettling both contractors and investors.
    Our solution: insurance for individual, project-related risks targeted at contractors (EPC/T&I), manufacturers and suppliers in the offshore wind industry.

    During the construction and operating phases, wind park 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: we offer contractors (EPC/T&I), manufacturers and suppliers our support in dealing with losses that can have a serious impact on the performance of their businesses. Our EPC product provides protection in case of serial losses as well as large single losses relating to the warranty obligations of contractors (EPC/T&I), manufacturers and suppliers.

    Our long-standing experience of wind power projects, weather and environment assessment expertise, capacity, technical knowledge and risk-structuring excellence enables us to design tailor-made solutions, providing piece of mind for worst-case scenarios.

    We have collaborated closely with players in the offshore wind area – such as energy producers, investors, developers, contractors, suppliers and lenders to identify coverage gaps that may cause financial stress to wind projects and their value chain.

    Green Tech Solutions pools expert know-how in the field of renewable energies. We offer innovative performance guarantee insurances for wind, solar, hydrogen and other green technologies.

    How Munich Re’s EPC offshore wind cover works

    Benefits of EPC cover

    Built-in defects are often discovered only in the operational phase. The main need for contractors (EPC/T&I), manufacturers and suppliers is to protect the uninsured risks during the warranty period after successful handover of the project:
    The EPC Cover insures a wide range of contractual risks.
    It provides a substantial safeguard in the event of a large warranty claim as well as serial losses due to faulty construction (certified design), faulty material, faulty production or bad workmanship, for a period of up to five years.
    The EPC Cover secures survival in catastrophic scenarios which really can hurt the contractors (EPC/T&I), manufactures and suppliers’ overall balance sheet.
    The EPC Cover steps in if supplier’s warranty fails.
    The EPC Cover creates a competitive advantage for the Contractors (EPC/T&I), manufacturers and suppliers (less capital allocated).

    Would you like to learn more about our other products?

    • Protection against cost overrun for unscheduled maintenance of onshore wind farms;
    • Covering shortage of revenue due to underperformance of the wind farm;