Offshore Wind Facilities


While offshore wind facilities involve some transit and business interruption elements, it falls largely within the alternative energy specialty practices of insurers and brokers.


“I think this type of risk is now being treated and tested in insurance companies in their alternate energy specialty areas.” Robert Huffert, Munich Re America


Property insurance underwriters consider offshore wind facilities to fall under the purview of offshore energy underwriters. Meanwhile, offshore energy underwriters don’t really view this as falling into their specialty area because they focus mostly on oil and gas business. So now the risk is largely tested in the alternative energy specialty areas of some insurers. The concern is largely around the accumulation of exposure as well as concern that insurance policies will be used to test new technology that may or may not work. Insurers will have to figure out how to effectively cover alternative energy risk because there is going to be a great deal more alternative energy in our future.


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