The workshop also covered the technical aspects of underwriting engineering insurance policies including Contractors' All Risks (CAR), Erection All Risks (EAR) Advanced Loss of Profit
(ALOP), Machinery Breakdown (MB), and Electronic Equipment (EEI).
The risk covered includes loss or damage while the apparatus is shipped in addition to delay in start-up and advanced loss of profits
for loss of income and profit arising from late or non-arrival of critical components due to a covered loss or damage.
He said such programmes include construction insurance, marine insurance, including delay in start-up/ advanced loss of profits
and third-party risk.
"Usually the manufacturer and contractor will provide a basic level of cover, however this often only provides cover against damage to the wind turbine itself and does not provide any cover in respect of delayed start-up or advanced loss of profits
, or the dozens of other potential risks associated with setting up a windfarm which can cost hundreds of thousands of pounds in lost revenue or profit.
Morgan, Underwriting and Claims Manager, Infrassure, spoke about Advanced Loss of Profits
(ALOP), which involves protecting against delays arising from physical damage.