Wind and photovoltaic energy have established themselves as strategic components in the transition to a low-carbon, sustainable energy system. However, the operation of these plants involves a variety of specific risks that require precise identification, technical mitigation strategies, and robust insurance solutions to ensure operational resilience and continuity.

Key Risks in Wind and Solar Power Facilities

1. Extreme Weather Events
Severe storms, hail, flooding, and seismic activity pose a direct threat to critical infrastructure, such as turbine towers, rotor blades, solar panels, inverters, and substations, potentially leading to prolonged outages and significant business interruption losses.

2. Fire and Lightning Risk
Both technologies are exposed to fire hazards—from internal system failures, overheating, or electrical faults—and external threats such as lightning strikes. These events can result in total or partial asset losses and high repair and replacement costs.

3. Mechanical and Electrical Failures
The complexity of electromechanical systems (e.g., gearboxes, transformers, SCADA systems) can lead to unplanned breakdowns, affecting energy production targets and triggering warranty or insurance claims.

4. Occupational Safety Hazards
Operation and maintenance (O&M) activities—especially those involving work at heights or confined spaces in wind turbines—carry a high level of exposure for technicians, increasing the probability of work-related accidents and liability claims.

5. Cybersecurity Threats
Digitalization and remote monitoring (via SCADA systems or IoT platforms) improve efficiency but expose assets to cyber intrusions, potentially disrupting operations or compromising sensitive data.

Why Specialized Insurance Coverage is Critical

A tailored insurance program is essential to ensure financial protection and business continuity in the event of a loss. Key coverages for wind and solar energy assets include:

  • All-Risks Property Damage Insurance, including machinery breakdown.
  • Business Interruption Coverage, compensating for revenue loss during downtime.
  • Third-Party Liability Insurance, protecting against bodily injury or environmental damage claims.
  • Environmental Impairment Liability, especially relevant for battery storage and chemical use.
  • Cyber Risk Insurance, covering incidents related to system intrusions or data breaches.

Insurance wordings should be adapted to reflect the specific technology deployed, project lifecycle phase (construction vs. operation), and geographical exposure.

Best Practices in Claims Management

When an incident occurs, early intervention and technical coordination are essential to mitigate impact. Effective loss response in the renewable sector should include:

  • Pre-defined contingency plans integrated into the plant’s emergency response protocols.
  • Real-time incident reporting and claim quantification with support from a dedicated Adjuster of the Insured (not the insurer’s loss adjuster).
  • Collaboration with engineers, risk consultants, and insurers to enable a just, agile, and amicable resolution.
  • Post-event forensic analysis to improve future resilience and prevent recurrence.

Conclusion

Wind and solar assets, despite their long-term strategic value, are not risk-free. Only through a proactive risk identification process, the implementation of specialized insurance policies, and professional claims support can operators ensure the sustainability and profitability of their energy infrastructure.

At VANTEVO Claims Advisors, we support insureds throughout this process—from risk analysis to post-loss advisory—ensuring their assets remain protected, productive, and aligned with the sector’s technical and financial standards.