Over the past few years, there has been rapid growth in wind power generation and associated technologies. Power generation projects are not only being undertaken by large organisations but consumers and small businesses are also setting up their own energy sources to:
- cater for their own energy needs
- generate revenue by selling any surplus electricity to energy suppliers
The opportunities
- Wind energy accounts for 36% of the UK renewable energy market with an estimated turnover value of £11.5bn of which £5.2bn (48%) relates to manufacturing activities in this sector
- There are an estimated 5,400 businesses in the UK employing over 87,000 people engaged in trades linked to the wind energy sector
- The sector is set to grow by an average of 7% or £8bn perbannum over the next three years
- In the UK there are an estimated 270 on-shore wind farm projects operating over 2,500 wind turbines and an additional 27 projects under construction. There are 199 consented projects with approximately 266 projects in the planning phase
Key covers available
This is a diverse sector including manufacturing, construction, installation, management and operations of wind farms and Aviva has the products to help all types of businesses engaged in this sector. Below is a list of key covers to consider for your customers in this sector.
- Machinery Breakdown – electrical and or mechanical breakdown of the wind turbines or any other equipment resulting in costly repairs or even replacement of the turbines
- Business Interruption – cover for periods of operational downtime as a result of an Insured peril e.g. fire or storm damage, machinery breakdown and equipment failure. We can also cover lost revenue associated with the failure or physical damage to non-owned property such as a utilities substation
- Property Damage – to protect from any loss arising out of fire, storm or other Insured peril damage to the wind turbines
- Contract Works – protection against any loss arising from property damage caused during construction of the wind turbine project. Also protects the value of labour and materials of the work in progress in the event that it is damaged by theft, vandalism, fire, storm, etc. Cover for own and hired-in plant also key for contractors in this sector
- Computer – cover for specialist computer equipment including laptops and portable media used off site. Reinstatement of Data cover should also be considered to protect from any loss of valuable data not easily replaceable
- Employers’ Liability – provides cover for accidents likely to arise from hazards such as working at height, using cranes and lifting equipment and contact with moving machinery. The risk of electrocution may not feature in projects solely involved with construction of the structure
- Public Liability – provides cover for any damage caused to third party property during construction/installation or arising from use of a wind turbine. Turbines adjacent to or on top of structure may collapse or give rise to damage from ice thrown off the turbine blades. Essential cover for businesses engaged in Construction and Installation of wind turbines and for those firms with wind turbines located on the premises
- Products Liability – essential for businesses that manufacture, distribute or sells wind turbines or any semi-finished goods, components and equipment. We can also offer Product Recall for businesses against the costs arising from a recall of any defective products that may cause imminent injury/damage
- Professional Indemnity – for construction professionals such as architects, consulting engineers, project managers, quantity surveyors who accept design liability as part of Design & Build contract terms
- Marine Cover – a significant number of businesses are involved in the export and import of components, semi-finished goods, machinery and equipment throughout the world. Covers available include Marine Transit for any loss of goods and Marine Delay in Start up to protect from any consequential loss in revenue
- Directors and Officers Cover – a very useful cover for this sector due to the use of new and emerging technologies, processes and equipment. Helps protect company directors and officers if accused of any ‘wrongful acts’
- Performance Bonds – guarantees that a project will be performed according to the terms and conditions. We can also offer Advance Payment Bonds required where the employer makes a payment to the contractor in advance of construction or the provision of services or supply of goods. Other bonding requirements such as Section 106 Bonds are also available