Harnessing the Thrilling World of Windmill Insurance on #GlobalWindDay!

Today, on the occasion of Global Wind Day, we are thrilled to kick off a special series that unveils the intricacies of windmill insurance. Join us as we delve into the world of wind energy and the vital role insurance plays in safeguarding this rapidly growing industry. In this exclusive feature, we sit down with our esteemed director, Mr. Tapas Nandi, to decode the complexities of windmill insurance and shed light on the remarkable coverage it provides. So, fasten your seatbelts as we embark on a journey to explore the importance of this specialized insurance and the range of coverage it offers.

The Importance of Windmill Insurance: 

Wind energy has emerged as a transformative force, reshaping our energy systems and propelling us towards a greener, more sustainable future. As the wind power sector continues to expand, it is crucial to acknowledge the inherent risks involved in harnessing this mighty force of nature. This is where windmill insurance becomes indispensable. It acts as a shield, mitigating potential risks and ensuring the seamless operation of wind farms, ultimately contributing to the decarbonization of our economies. At Alliance Insurance Brokers Pvt Ltd, we have been at the forefront of windmill insurance since 2009, serving as a trusted partner for our clients in Rajasthan, Maharashtra, Gujarat, and beyond.

Decoding Windmill Insurance Coverage: 

The Installation Phase: During the installation phase, windmills are susceptible to a myriad of risks. A comprehensive EAR (Erection All Risk) policy provides a safety net, covering any mishaps that may occur at the installation site. From unforeseen accidents to damage during transit, this policy offers comprehensive protection, ensuring that your windmill project proceeds smoothly.

Additional policies required during the installation phase include:

1.     Marine Policy for covering risks during the transit of project-related cargos.

2.     Workmen Compensation policy, which is mandatory for such projects, to cover workers on duty.

3.     Professional Indemnity and Commercial General Liability for covering liability-related risks for EPC contractors.

4.     Advance Loss of Profit policy to cover losses related to project delays due to various reasons.

The Operational Phase: Once the windmill is operational, it requires a different set of insurance covers to safeguard against potential perils. An operational policy encompasses a range of key coverages, including:

Fire Insurance: Protecting against fire-related incidents, this coverage ensures that any damage caused by fire is promptly and adequately compensated. It covers around 13 perils and their extensions.

Fire Loss of Profit Insurance (FLOP): In the unfortunate event of a fire disrupting your windmill operations, this policy provides coverage for the resulting loss of profit. It acts as a financial safety net, helping you recover and get back on track. If one opts only for a 'Fire Policy,' the FLOP must be taken as a separate cover.

Burglary policy could be an important policy for covering burglary and theft-related risks, especially since windmills are often installed in remote areas.

Industrial All Risk Policy (IAR): As windmills are complex structures with various machinery and equipment, an industrial all risk policy offers comprehensive protection against a wide range of perils, such as natural disasters, equipment breakdowns, and accidental damage. It also includes an additional section to protect against loss of profit arising from fire, which is a compulsory cover for business interruption. Additionally, MLOP (Machinery Loss of Profit) is an option under the IAR policy, playing a critical role in providing coverage for loss of profit due to machinery breakdown.

One can also opt for Cover Like CGL (Commercial General Liability) cover for covering liability arising out of third-party bodily injury or property damage.

Other Policies: Parametric Insurance via Reinsurance Harnessing the power of reinsurance, we go a step further to explain innovative solutions like parametric insurance. This unique coverage addresses the specific needs of wind energy producers. For instance, in the event of wind generation failure due to certain predetermined conditions, parametric insurance compensates for the resulting loss of profit, providing peace of mind and financial stability.

Conclusion:

On this momentous occasion of Global Wind Day, we hope to have shed light on the significance of windmill insurance and the vital role it plays in supporting the growth of wind energy. As the winds of change propel us towards a sustainable future, we remain committed to providing innovative insurance solutions tailored to the unique needs of the wind power industry.

Join us in celebrating Global Wind Day and share this informative read with all those in the domain. Together, let's harness the power of wind and forge a greener tomorrow.