Munich Re says it has become the first insurance group to offer serial loss cover for offshore wind energy units.
Corresponding cover for a North Sea wind farm has been signed by Marcus A Wassenberg, chief financial officer of manufacturer REpower, Dr Thomas Blunck, a member of Munich Re’s board and Thomas Haukje, managing partner of Nordwest Assekuranz.
The cover provides that Munich Re will pay for the repair or replacement of defective turbines or individual components if there are serial losses affecting a number of elements – such as the gearbox, the rotor or the tower.
The group will also cover the costs involved in deploying the special vessels required, and the deal includes retrofits carried out on units in which defective parts have been installed, even if no loss or damage has been sustained.
Munich Re points out that serial loss cover also facilitates the financing of major offshore projects by giving investors more security.