Provision of Cover
This policy provides cover against breakdown for wind turbines installed on premises owned by the insured customer or serviced by the O & M company situated worldwide (restrictions could apply). Cover is limited to the components in the wind turbine nacelle.

Breakdown: the sudden and unforeseen breaking, distortion, overheating or electrical burnout of any part of the machinery which occurs whilst the machinery is in use, resulting in its immediate stoppage of function or partial stoppage of pre-programmed function and requiring repair and/or replacement before normal work can be resumed, up to a maximum per claim and in the aggregate.

If a turbine breaks down, the insurer will indemnify for the costs to put it back in working order. This includes the costs of labour, parts, one crane visit and reasonable costs of travel, including any overnight stay required spent on behalf of the insured by the O & M company to repair the turbine. Indemnity will also include the expediting costs to ship parts from overseas if this is the only way to repair the turbine. The insurer may decide to repair damaged parts rather than replace them.

There will be a maximum limit of indemnity per claim and in the aggregate.


  • Repair or replacement costs are paid for the components that have failed
  • Fixed premium/cover up to five years: the cover and premium will remain unchanged regardless of the number of claims
  • No usage restrictions: cover will apply regardless of uptime
  • Claims settled in house without the need of a loss adjuster
  • Renewable
  • Profit Share subject to MW size

General Eligibility for Cover

  • The age of the turbine must not exceed 20 years at expiry
  • Principal manufacturers
  • Approved and inspected reconditioning manufacturers

The Period for which the turbine is covered
1. (a) For new turbines.
The cover for new turbines under the electrical and mechanical breakdown section of the policy begins after a minimum of one year or when the manufacturer’s warranty finishes if later.
(b) For used and reconditioned turbines.
The cover for used and reconditioned turbines in the policy begins at the acceptance date (a waiting period of 60 days may apply). In the event there is a period of the manufacturer’s warranty remaining at the acceptance date, the cover under the electrical and mechanical breakdown section shall begin at the expiry of the manufacturer’s warranty period.
2. When the maximum indemnity amount payable under the policy has been paid.
3. Until the date on which the turbines is sold or the insured ceases to trade.

Principle Exclusions

  • The policy excess
  • Consequential loss
  • Theft or attempted theft
  • Loss or damage caused by fire, lightning, aircraft, storm, explosion or accidental damage
  • Wear and tear, gradual deterioration, rust or corrosion, intentional overloading, testing or commissioning
  • Loss or damage covered under a manufacturer’s warranty or another party’s warranty or guarantee
  • Any electrical or mechanical breakdowns:
    • during the manufacturer’s warranty period
    • for a period of 60 days from the date the warranty begins if the warranty purchased is not an extension of an existing warranty
  • Consumable items are not covered
  • Any damage caused to the turbine by continuing to use it when it is broken
  • Any damage or breakdown caused by a poor working environment
  • Failure of the public electricity supply and from surges and variations in the electrical supply
  • Electrical and mechanical breakdowns if the equipment has not been regularly serviced or maintained
  • Serial loss defects clause

For more information please contact us.