Working together to deliver world-class insurance for the wind turbine industry

Onshore & Offshore Wind Energy

www.cnaeurope.com

Your specialist commercial insurance partner across Europe

In Europe, CNA is recognised as a leading insurer of specialist risks and a provider of innovative products, distributed through our offices 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 reflect our promise to build a deeper understanding of the needs of our brokers and their clients. We back this commitment with the financial reassurance of the CNA Group, which has been trading for over a century and is one of the largest insurance organisations in North America today.

Delivering insurance programmes for the wind turbine industry.

We have been working with the renewable energy sector for a number of years and consider this area to be of great global importance. We have established a dedicated team of experts to manage this area and can assist you in acquiring the best possible protection, tailored to suit your individual needs.

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The onshore and offshore wind energy insurance markets have matured in recent times and CNA provides a range of products and services delivered with the knowledge and experience that you would expect from a global insurance partner. CNA provides a seamless policy for construction and operational phases
The key risks begin at the construction phase, including marine and inland transit of the equipment to site, erection and testing, delay in start up third party liability and finally operational property damage and business interruption. We provide complete cover to avoid any gaps or overlaps between the different phases of the risk. In addition we are able to provide general liability cover and professional indemnity for a range of renewable energy industry professionals

CNA Wordings
Our wordings have been developed for both schemes and for small to large size operators. Our clients include some of the largest global wind farm operators and we have key specialisms, from Project Finance through to Operations and Claims handling.

CNA is fully conversant with lenders requirements on major projects

Requirements can vary from a simple need to establish that they are named as Insureds on key material damage and financial covers and have the benefit of waivers of subrogation to requests for a schedule of minimum insurance requirements and a host of controls, constraints and hold harmless agreements on such covers.

CNA provides a range of products and services delivered with the knowledge and experience that you would expect from a global insurance partner.

Principal Covers
The principal covers that form an insurance programme include: Material Damage Construction and Erection
The cover protects the Insured, financiers, all contractors and sub-contractors and professional consultants in respect of all risks of loss, destruction or damage to the permanent or temporary works, materials, goods, plant machinery and equipment used in connection with the design, construction, erection, commissioning and testing of the project.

Property
This cover will indemnify the Insured and financiers against all risks of loss, destruction or damage to the property and other assets owned by or the responsibility of the Insured whilst in operational mode.

Financial
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Advance Loss of Profits

Cover will protect the Insured and financiers against additional costs, expenses, finance charges and loss of anticipated income following delay in completion as a result of loss, destruction or damage to property insured under the Construction and Transit insurances.

Business Interruption
Business interruption indemnifies the Insured and financiers against additional costs, expenses, finance charges and loss of income following interruption to the Insureds business as a result of loss, destruction or damage to property insured under the Property cover.

Legal liability Public and Products Liability

This cover indemnifies the Insured and financiers (and where appropriate all contractors, subcontractors and professional consultants) against all sums for which they shall become legally liable (including claimants costs and expenses) in respect of:

death or bodily injury to or disease contracted by any person loss of or damage to property interference to property or the enjoyment of use by obstruction, trespass, loss of amenities, nuisance or any like cause; arising out of the Insureds projects and operations.

Additional Covers
In addition to the cover highlighted above, there are a number of other important insurance products available including:

Construction Plant and Equipment

It is possible to extend the project insurance programme to include loss, destruction or damage to constructional plant and equipment, tools, personal effects of employees and temporary buildings and contents used during the project. Such items are normally the responsibility of the contractor and are either owned by him or hired-in specifically to undertake the works.

Marine Transit
Marine Transit will protect the Insured and financiers against all risks of physical loss, destruction or damage to materials, goods, plant and equipment intended for use in connection with the project whilst in ocean or land transit (including temporary off-site storage) within agreed territorial limits. Transits are often for parts manufactured globally that are transported and assembled locally.

Principal Covers
The cover is in force from the time the goods leave the manufacturers premises until the time of arrival at the project site including any storage during the normal course of transit. If any intentional storage coverage is required, this can be accommodated subject to material information being supplied. The policy is normally designed to dovetail with the Construction Insurance to ensure that there are no gaps in cover during the transit operations.

Financial Marine Consequential Loss

If Marine Transit coverage were required, it would be necessary to combine it with cover for delay in start-up (DSU) against additional costs, expenses, finance charges and loss of anticipated income following delay in completion as a result of loss, destruction or damage to items during transit. An indemnity period representing the maximum probable delay to the EPC Contract as a result of damage to or loss of such items, will need to be selected. With the increasing role of project finance, this coverage is particularly important for banks.

Legal Liability
Our renewable energy capabilities extend to include the professional indemnity exposures for a broad range of professionals in the industry

Professional Indemnity
Contractors and consultants normally require Professional Indemnity insurance protection by way of annual renewable insurance programmes. Although there is an alternative way of procuring this cover, i.e. within a project specific programme covering all parties with a design responsibility, we would not recommend that Insureds pursue this alternative. We would, therefore, advise Insureds to utilise the existing insurances of the contractor and consultants but require them to effect an agreed level of Professional Indemnity cover and maintain it for a specified period. Employers Liability and Workmens Compensation Most Owners and Operators will need to cover the workforce who maintain the turbines. There are particular risks here relating to employees working at height and the obvious risks of maintaining offshore facilities.

CNA provides a range of products and services delivered with the knowledge and experience that you would expect from a global insurance partner.

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Key Risks
We have identified the following key risk areas that you will need to consider as part of your wind energy programme: Start-up Delays
Delay to the schedule date of commercial operations as a result of damage to equipment while in transit or during installation, testing and/or commissioning.

Construction Site Access

Developments in remote or mountainous areas require careful preparation of roadways. For example, we can assess gradients and access routes to prevent accidents and delays during delivery of nacelles and blades.

Cable Laying
The method and preparation for laying cable around turbines and to substations will influence cost and the level of cover. Most are laid underground in well-prepared trenches.

Wind Force Disruption

During the construction phase and repair work, the impact of high wind conditions requires careful evaluation. Clients need to ensure they adhere to the specific regulations relating to the use of cranes during high winds.

Lightning Damage
This is the most common exposure for operating turbines. We require underwriting information that blades and towers have good quality lightning protection. Working with a major blade supplier, our team has measured and quantified blade strikes, helping develop actions to mitigate damage levels.

Natural Catastrophe
When considering the overall impact of weather events on a wind farm, a thorough evaluation of all local geographic features is needed. CNA has considerable experience to be able to judge such an impact and distinguish one wind farm from another in this regard.

Ground and Soil Conditions

Knowledge of the soil and geological surveys is prerequisite for insurers when piling for tower constructions or laying cable.

Technology
Whereas cover for machinery breakdown is standard, cover for series type losses is often restricted (i.e. identical failures on multiple units). Proposed turbines with limited operating experience may be considered as prototype. As a result, cover can be restricted, affecting a projects creditability and stakeholder investment. For risk transfer, CNA can help project owners demonstrate to investors and the markets that there is a robust risk management strategy in place. We also help developers review manufacturers guarantees, sourcing cover to complement and avoid gaps in protection.

Substations and Power Delivery

Loss of revenue arising from the malfunction of the wind farm transformers or substation can seem disproportionately high. We help clients reduce loss potentials by analysing transformer and generator down time and the replacement availability of parts. This research is already delivering beneficial and cost-effective solutions.

Our clients include some of the largest wind farm operators in Europe.

General Information Requirements We would need the following information to help you obtain the best possible coverage to suit your needs: Location

Surrounding exposures Access restrictions Special transportation requirements

Equipment
Manufacturer, model number and exact arrangement of equipment Details of operating experience and a reference list of similar installations Lead times for key equipment, i.e. complete turbine generator units, blade sets, gearboxes, generators and step up transformers

Site Layout

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Number of machines to be installed Distance between machines Access roads Communications and interconnection arrangements between units

Power Export Arrangements

Details of the grid connection Lead time to replace transformers

Business Interruption and Delay in Start Up

Details of power sales arrangements Details of any power export bottlenecks, e.g. a single power export transformer or daisy chain connection of machines

Maintenance Aspects

Details of original equipment manufacturer support Availability of spare parts held in stock Availability of suitable craneage to allow major maintenance activity such as the replacement of a blade set

Protection Arrangements

Details of fixed fire protection systems on any part of the project Details of any protection against lightning strike Overspeed shutdown protection

Property Costs
Breakdown of replacement costs (valuation/project costs) Cost indications for major components e.g. complete wind turbine generator units, blade sets, gearboxes, generators and step up transformers

Contingency Planning

Details of arrangements in hand for replacement of major equipment such as a complete turbine generator set or main export transformer Details of arrangements for shutdown in the event of severe weather conditions such as high wind, ice storms etc

Handling Claims
CNA is committed to excellence in claims management and the implementation of industry best practices for claims resolution. We employ specialist adjusters who have a deep understanding of the products we sell and the businesses we insure. When a claim occurs, CNAs ability to work with the Insured and the broker transforms the claim handling process into a united effort to resolve the loss fairly.

Managing Risk
CNAs risk control team works with you to eliminate or reduce the frequency and severity of losses. Qualified engineers inspect sites, identifying and analysing risk control measures that will reduce your exposures. We also analyse the business interruption exposure. This includes identifying bottlenecks in production, critical equipment that may take months to replace and interdependencies among your business. Liability exposure also exists in every part of a business and, in a growing culture of compensation litigation, policyholders are recommended to protect their interests with a comprehensive risk management programme. For the simple investment of 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 cover to avoid any gaps or overlaps between the different phases of the project.

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To find out more, please call us on:

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

Alternatively, please visit cnaeurope.com

2 Minster Court Mincing Lane London EC3R 7BB United Kingdom Tel +44 (0)20 7743 6800 Fax +44 (0)20 7743 6801 www.cnaeurope.com

CNA Insurance Company Limited Registered in England number 950 Registered Office: 2 Minster Court Mincing Lane London EC3R 7BB VAT registration number 245813851 A member of the Association of British Insurers A Member of the CNA Financial Group Authorised and regulated by the Financial Services Authority (number 202777) CNA Europe is a trade mark of CNA Financial Corporation CNA is a registered trade mark of the CNA Financial Corporation

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