CNA Onshore and Offshore Wind Energy Brochure - 21-05-10

8/3/2019 CNA Onshore and Offshore Wind Energy Brochure - 21-05-10

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Working togetherto deliver world-class insurance for the wind turbine industry

Onshore & Oshore Wind Energy www.cnaeurope.com

Your specialist commercial insurance partner across Europe


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In Europe, CNA is recognised as a leading insurer o specialist

risks and a provider o innovative products, distributed through

our oices in Belgium, Denmark, France, Germany, Italy, Spain,

Sweden, Switzerland, The Netherlands, United Kingdom and

increasingly across borders into the wider European Union.

Our core values are underwriting and service excellence linked

to superior claims management and innovation in both product

design and delivery. These values relect our promise to build

a deeper understanding o the needs o our brokers and theirclients. We back this commitment with the inancial reassurance

o the CNA Group, which has been trading or over a century

and is one o the largest insurance organisations in North

America today.

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Delivering insurance programmes

for the wind turbine industry.We have been working with the renewable energy sector or

a number o years and consider this area to be o great global

importance. We have established a dedicated team o experts to

manage this area and can assist you in acquiring the best possible

protection, tailored to suit your individual needs.

cnaeurope.comThe onshore and oshore wind energy insurance markets have

matured in recent times and CNA provides a range o products

and services delivered with the knowledge and experience that

you would expect rom a global insurance partner.

CNA provides a seamless policy or construction and

operational phasesThe key risks begin at the construction phase, including marine and inland transit o the equipmentto site, erection and testing, delay in start up third party liability and nally operational propertydamage and business interruption. We provide complete cover to avoid any gaps or overlapsbetween the dierent phases o the risk.

In addition we are able to provide general liability cover and proessional indemnity or a range orenewable energy industry proessionals

CNA WordingsOur wordings have been developed or both schemes and or small to large size operators.

Our clients include some o the largest global wind arm operators and we have key specialisms,rom Project Finance through to Operations and Claims handling.

CNA is ully conversant with lenders requirements on

major projectsRequirements can vary rom a simple need to establish that they are named as Insureds on keymaterial damage and nancial covers and have the benet o waivers o subrogation to requests ora schedule o minimum insurance requirements and a host o controls, constraints and holdharmless agreements on such covers.

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CNA provides a range of products andservices delivered with the knowledge and

experience that you would expect from aglobal insurance partner.

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Principal CoversThe principal covers that orm an insurance programme include:

Material Damage

Construction and ErectionThe cover protects the Insured, nanciers, all contractors and sub-contractors and proessionalconsultants in respect o all risks o loss, destruction or damage to the permanent or temporaryworks, materials, goods, plant machinery and equipment used in connection with the design,construction, erection, commissioning and testing o the project.

PropertyThis cover will indemniy the Insured and nanciers against all risks o loss, destruction or damageto the property and other assets owned by or the responsibility o the Insured whilst in operationalmode.

FinancialAdvance Loss o ProtsCover will protect the Insured and nanciers against additional costs, expenses, nance chargesand loss o anticipated income ollowing delay in completion as a result o loss, destruction ordamage to property insured under the Construction and Transit insurances.

Business InterruptionBusiness interruption indemnies the Insured and nanciers against additional costs, expenses,nance charges and loss o income ollowing interruption to the Insureds business as a result oloss, destruction or damage to property insured under the Property cover.

Legal liability

Public and Products LiabilityThis cover indemnies the Insured and nanciers (and where appropriate all contractors, sub-contractors and proessional consultants) against all sums or which they shall become legally liable(including claimants costs and expenses) in respect o:

death or bodily injury to or disease contracted by any person

loss o or damage to property

intererence to property or the enjoyment o use by obstruction, trespass, loss o

amenities, nuisance or any like cause; arising out o the Insureds projects and operations.

Additional CoversIn addition to the cover highlighted above, there are a number o other important insuranceproducts available including:

Construction Plant and EquipmentIt is possible to extend the project insurance programme to include loss, destruction or damage toconstructional plant and equipment, tools, personal eects o employees and temporary buildingsand contents used during the project.

Such items are normally the responsibility o the contractor and are either owned by him or hired-inspecically to undertake the works.

Marine TransitMarine Transit will protect the Insured and nanciers against all risks o physical loss, destruction ordamage to materials, goods, plant and equipment intended or use in connection with the projectwhilst in ocean or land transit (including temporary o-site storage) within agreed territorial limits.Transits are oten or parts manuactured globally that are transported and assembled locally.

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Principal Covers

The cover is in orce rom the time the goods leave the manuacturers premises until the time oarrival at the project site including any storage during the normal course o transit. I any intentionalstorage coverage is required, this can be accommodated subject to material inormation being

supplied. The policy is normally designed to dovetail with the Construction Insurance to ensure thatthere are no gaps in cover during the transit operations.

Financial

Marine Consequential LossI Marine Transit coverage were required, it would be necessary to combine it with cover or delay instart-up (DSU) against additional costs, expenses, nance charges and loss o anticipated incomeollowing delay in completion as a result o loss, destruction or damage to items during transit.An indemnity period representing the maximum probable delay to the EPC Contract as a result odamage to or loss o such items, will need to be selected. With the increasing role o projectnance, this coverage is particularly important or banks.

Legal LiabilityOur renewable energy capabilities extend to include the proessional indemnity exposures or abroad range o proessionals in the industry

Proessional IndemnityContractors and consultants normally require Proessional Indemnity insurance protection by way oannual renewable insurance programmes. Although there is an alternative way o procuring thiscover, i.e. within a project specic programme covering all parties with a design responsibility, wewould not recommend that Insureds pursue this alternative. We would, thereore, advise Insureds toutilise the existing insurances o the contractor and consultants but require them to eect anagreed level o Proessional Indemnity cover and maintain it or a specied period.

Employers Liability and Workmens Compensation

Most Owners and Operators will need to cover the workorce who maintain the turbines. There areparticular risks here relating to employees working at height and the obvious risks o maintainingoshore acilities.

CNA provides a range ofproducts and servicesdelivered with the knowledge

and experience that youwould expect from a global

insurance partner.

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Key RisksWe have identiied the ollowing key risk areas that you will need

to consider as part o your wind energy programme:

Start-up DelaysDelay to the schedule date o commercial operations as a result o damage to equipment while intransit or during installation, testing and/or commissioning.

Construction Site AccessDevelopments in remote or mountainous areas require careul preparation o roadways. Forexample, we can assess gradients and access routes to prevent accidents and delays duringdelivery o nacelles and blades.

Cable LayingThe method and preparation or laying cable around turbines and to substations will infuence cost

and the level o cover. Most are laid underground in well-prepared trenches.

Wind Force DisruptionDuring the construction phase and repair work, the impact o high wind conditions requires careulevaluation. Clients need to ensure they adhere to the specic regulations relating to the use ocranes during high winds.

Lightning DamageThis is the most common exposure or operating turbines. We require underwriting inormation thatblades and towers have good quality lightning protection. Working with a major blade supplier, ourteam has measured and quantied blade strikes, helping develop actions to mitigate damage levels.

Natural CatastropheWhen considering the overall impact o weather events on a wind arm, a thorough evaluation o alllocal geographic eatures is needed. CNA has considerable experience to be able to judge such animpact and distinguish one wind arm rom another in this regard.

Ground and Soil ConditionsKnowledge o the soil and geological surveys is prerequisite or insurers whenpiling or tower constructions or laying cable.

Technology

Whereas cover or machinery breakdown is standard, cover or series typelosses is oten restricted (i.e. identical ailures on multiple units). Proposedturbines with limited operating experience may be considered as prototype.As a result, cover can be restricted, aecting a projects creditability andstakeholder investment. For risk transer, CNA can help project ownersdemonstrate to investors and the markets that there is a robust riskmanagement strategy in place. We also help developers reviewmanuacturers guarantees, sourcing cover to complement and avoidgaps in protection.

Substations and Power DeliveryLoss o revenue arising rom the malunction o the wind arm transormers or substation can seemdisproportionately high. We help clients reduce loss potentials by analysing transormer and

generator down time and the replacement availability o parts. This research is already deliveringbenecial and cost-eective solutions.

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Our clients include some of the largestwind farm operators in Europe.

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General Inormation Requirements

We would need the ollowing inormation to help you obtain the

best possible coverage to suit your needs:

LocationSurrounding exposures

Access restrictions

Special transportation requirements

EquipmentManuacturer, model number and exact arrangement o equipment

Details o operating experience and a reerence list o similar installations

Lead times or key equipment, i.e. complete turbine generator units, blade sets, gearboxes,

generators and step up transormers

Site LayoutNumber o machines to be installed

Distance between machines

Access roads

Communications and interconnection arrangements between units

Power Export ArrangementsDetails o the grid connection

Lead time to replace transormers

Business Interruption and Delay in Start UpDetails o power sales arrangements

Details o any power export bottlenecks, e.g. a single power export transormer or daisy chain

connection o machines

Maintenance AspectsDetails o original equipment manuacturer support

Availability o spare parts held in stock

Availability o suitable craneage to allow major maintenance activity such as the replacement o

a blade set

Protection ArrangementsDetails o xed re protection systems on any part o the project

Details o any protection against lightning strike

Overspeed shutdown protection

Property CostsBreakdown o replacement costs (valuation/project costs)

Cost indications or major components e.g. complete wind turbine generator units,

blade sets, gearboxes, generators and step up transormers

Contingency Planning

Details o arrangements in hand or replacement o major equipment such as a complete turbine

generator set or main export transormer

Details o arrangements or shutdown in the event o severe weather conditions such as high

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Handling ClaimsCNA is committed to excellence in claims management and the implementation o industry bestpractices or claims resolution. We employ specialist adjusters who have a deep understanding othe products we sell and the businesses we insure.

When a claim occurs, CNAs ability to work with the Insured and the broker transorms the claimhandling process into a united eort to resolve the loss airly.

Managing RiskCNAs risk control team works with you to eliminate or reduce the requency and severity o losses.Qualied engineers inspect sites, identiying and analysing risk control measures that will reduceyour exposures.

We also analyse the business interruption exposure. This includes identiying bottlenecks inproduction, critical equipment that may take months to replace and interdependencies amongyour business. Liability exposure also exists in every part o a business and, in a growing culture ocompensation litigation, policyholders are recommended to protect their interests with acomprehensive risk management programme.

For the simple investment o time by you, we will help produce protection plans and develop a risk

management strategy to help protect your business.

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We provide complete coverto avoid any gaps or overlapsbetween the different phases

of the project.

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To fnd out more, please call us on:

+44 (0)20 7743 6800or contact your local CNA ofce.

Alternatively, please visit cnaeurope.com

2 Minster Court Mincing Lane London EC3R 7BB United KingdomTel +44 (0)20 7743 6800 Fax +44 (0)20 7743 6801

www.cnaeurope.com

CNA Insurance Company Limited Registered in England number 950 Registered Oice: 2 Minster Court Mincing Lane London EC3R 7BBVAT regist ration number 245813851 A member o the Associat ion o British Insurers A Member o the CNA Financial GroupAuthorised and regulated by the Financial Services Authority (number 202777)CNA Europe is a trade mark o CNA Financial Corporation CNA is a registered trade mark o the CNA Financial Corporation 2

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CNA Onshore and Offshore Wind Energy Brochure - 21-05-10