Web Exclusive | December 2012
Munich Re offers loss cover to REpower's wind turbines
Germany-based global reinsurer Munich Re offers serial loss cover for REpowers offshore wind turbines. The five-year cover includes retrofits carried out on units in which defective parts have been installed, even if no loss or damage has been sustained.
Munich Re has signed a deal with wind energy turbine company REpower, a subsidiary of Suzlon Energy, to offer serial loss cover for the latter’s offshore units. A corresponding cover for a North Sea wind energy farm was signed between the two entities. 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.
Munich Re will also cover the substantial costs involved in deploying the special vessels required. The five-year cover includes retrofits carried out on units in which defective parts have been installed, even if no loss or damage has been sustained. One of Munich Re’s speciality primary insurers is involved in providing this insurance solution, which was developed in conjunction with Nordwest Assekuranz.
Munich Re explained that because of the serial loss cover, REpower will be able to secure its guarantees, as the cost of repairing turbines at sea can be extremely high.