The Top 7 Insurance Policies for Wind Power Companies with NAICS Code 221115

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Learn about the most important insurance policies for wind power companies involved in the wind electric power generation industry to protect their business from risks.

Key Takeaways

  • Consider general liability, property, professional liability and workers’ compensation insurance to cover common risks.
  • Obtain cyber liability coverage to protect sensitive operational and customer data.
  • For offshore wind farms, evaluate marine and pollution liability policies.
  • Contractors should explore contractor’s all-risk insurance.

Introduction

As wind power companies engaged in the development, construction and operation of wind farms face unique risks, it is important to have the proper insurance policies in place. Certain lines of coverage are especially crucial for businesses in the wind electric power generation industry with NAICS code 221115 to protect their assets and ensure continuity of operations should an incident occur.

General Liability Insurance

General liability insurance provides broad protection against costly lawsuits for wind farm operators. It covers both on-site and off-site incidents that could result in bodily injury, property damage, or other liability claims being filed against the business now or in the future. Some key types of claims that general liability insurance protects wind farm businesses against include accidental pollution incidents, public liability on work sites, and equipment breakage issues. Pricing for policies averages between $3,500-$5,000 annually per $1 million of coverage depending on business risk factors.

Category List
Benefits
  • Protection against third party bodily injury and property damage claims
  • Defense costs if you are sued
  • Coverage for incidents that occur away from your premises
  • Coverage for errors and omissions related to your services
  • Protection for liability claims that arise over time
  • Coverage for pollution liabilities from turbine maintenance or fuel storage
  • Coverage for completed works like new turbine installations
Use Cases
  • Protect against bodily injury and property damage claims from operations
  • Cover third party claims for accidental pollution incidents during construction or operations
  • Provide coverage for public liability claims from visitors to wind farm sites
  • Indemnify against third party claims from blade or parts breakage during operations

Based on industry research and analysis, the estimated average annual pricing for general liability insurance for businesses in the wind electric power generation industry with NAICS code 221115 is $3,500 – $5,000 per $1 million of coverage. This price range was derived from average quoting data for wind farm operators of various sizes that considers risk factors such as the type of turbine equipment used, safety protocols, location, and claims history.

Estimated Pricing: $3,500 – $5,000

Property Insurance

Property insurance offers essential protections for companies in the high-risk wind power generation industry. It shields businesses from financial losses arising from potential disasters and damages that could disrupt operations. Some key benefits of property insurance for wind power businesses include replacement cost coverage to repair or rebuild damaged facilities, specialized coverage for expensive wind turbines, and business interruption insurance to continue paying bills if shutdown due to a covered event. Commonly insured risks are hurricane damage to wind turbines and electrical fires damaging buildings. Pricing is typically $0.70 to $1 per $100 of insured property value based on industry research.

Category List
Benefits
  • Protection against property damage or loss from disasters like hurricanes, wildfires, etc.
  • Coverage for theft or vandalism of equipment and property
  • Liability protection if a visitor is injured on your property
  • Replacement cost coverage to repair or rebuild damaged property back to its original condition.
  • Business interruption coverage to continue paying bills and employee salaries if the company has to temporarily shut down operations due to a covered event.
  • Specialized coverage for high-value equipment like wind turbines that are expensive to repair or replace.
Use Cases
  • Protection against damage or loss to wind turbine equipment from natural disasters like hurricanes, tornadoes, hail, lightning etc.
  • Coverage for damage or loss to buildings, facilities and other structures from events like fires, explosions etc.
  • Protection against theft or loss of equipment and property

Based on research, the average property insurance pricing for businesses in the wind electric power generation industry (NAICS Code 221115) is around $0.70 to $1.00 per $100 of insured value. This pricing is derived from considering factors like the risks involved in wind power generation such as operating wind turbines in remote outdoor locations that are exposed to weather damages. The pricing also takes into account safety measures and compliance practices of individual businesses.

Estimated Pricing: $0.70 to $1.00 per $100 of insured value

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is important coverage for companies in the wind power industry. It protects against liability lawsuits that claim negligence or inadequate work related to engineering, installing and maintaining large wind turbines. As the reference shows, it can help cover legal costs, damages from third party claims, costs of repairing faulty work, defense costs even for groundless allegations, and allows businesses to focus on work instead of lawsuits while protecting their reputations.

Category List
Benefits
  • Covers legal costs and damages if sued for negligent acts, errors or omissions
  • Protects against third-party claims of bodily injury or property damage from faulty work
  • Covers costs of repairing or replacing faulty work
  • Covers defence costs even if the allegations are groundless
  • Provides access to qualified defense attorneys with industry experience
  • Protects business reputation and credibility
  • Limits financial risk in the event of an expensive lawsuit
  • Allows businesses to focus on work instead of worrying about potential lawsuits
Use Cases
  • Protection against claims of negligent acts, errors or omissions in the performance of professional services
  • Defense costs if sued for mistakes like design flaws, construction errors or operational accidents resulting in injury or property damage
  • Coverage for liability claims from blade or turbine failure, transmission line accidents, and worksite incidents
  • Coverage for third party property damage or bodily injury claims resulting from failures, malfunctions or accidents
  • Legal costs assistance if regulatory non-compliance issues like permit violations or safety standard lapses lead to penalties/fines

Based on research on average pricing for professional liability insurance for engineering and consulting firms in the wind power industry, the estimated average annual premium would be around $10,000-$15,000 per $1 million of coverage. This pricing is derived considering risk factors such as the complex nature of wind farm development and construction projects as well as litigation trends in the renewable energy sector.

Estimated Pricing: $10,000-$15,000

Workers’ Compensation Insurance

Workers’ compensation insurance is an important risk management tool for businesses in the wind power generation industry. It protects companies financially from costs associated with workplace injuries while ensuring employees have coverage for medical expenses and lost wages if an incident occurs on the job. Considering the hazardous nature of working with heavy machinery at heights and in remote outdoor environments, maintaining adequate workers’ comp coverage is especially crucial for wind power companies. The coverage also helps attract quality candidates and demonstrates a commitment to worker safety and well-being.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Protects the business from lawsuits if an employee sues due to a work-related injury
  • Reduces absenteeism related to on-the-job injuries as employees can focus on recovery instead of financial stress
  • Attracts quality candidates by demonstrating care for employee well-being and safety
  • Mandatory for compliance with state laws regulating employers
  • Demonstrates to customers and partners that the business operates safely and legally
Use Cases
  • Covering injuries to employees working with heavy machinery and equipment for installation, maintenance, and repairs of wind turbines
  • Covering injuries to employees working at heights on wind turbine towers or blades
  • Covering injuries to employees working outdoors in remote or rural areas
  • Covering transportation accidents when employees are traveling between work sites
  • Covering injuries from working in changing weather conditions like high winds or storms

Based on national industry data, the estimated average workers’ compensation insurance pricing for businesses in the wind electric power generation industry with NAICS code 221115 is around $1.75 to $2.00 per $100 of payroll. This pricing range was derived from workers’ compensation insurance rates filed by insurance carriers according to the hazards of different occupations and industries. The wind electric power generation industry involves construction and maintenance of wind turbines which can be hazardous work, thus contributing to a higher than average insurance rate.

Estimated Pricing: $1.75 to $2.00 per $100 of payroll

Cyber Liability Insurance

As wind electric power generation companies depend on technology for operations and managing sensitive customer data, cyber liability insurance provides important protections from the financial risks of data breaches, network disruptions, and related cyber incidents. It ensures these businesses have resources to respond effectively should their systems be compromised.

Category List
Benefits
  • Covers costs of data breach response including notification, credit monitoring
  • Covers liability for damages if a data breach impacts customers or partners
  • Covers costs associated with a network outage or disruption from a cyber attack
  • Covers theft of intellectual property or proprietary information
  • Covers costs of regulatory fines and penalties for failure to protect private data
  • Covers legal defense costs if the company is sued in relation to a cyber incident
  • Provides access to cybersecurity experts and attorneys in the event of an incident
Use Cases
  • Data breach covering the costs of notifying affected parties, providing credit monitoring services, paying fines and penalties, litigation costs, forensic investigations, public relations services and more
  • Network security failure covering costs of restoring and recovering affected systems and data, business interruption losses, forensic investigations, credit monitoring and notification services
  • Cyber extortion covering costs of negotiating with and paying ransom demands to hackers
  • Third party liability for failure to safeguard data entrusted to the business by others
  • Media liability covering costs of defamation, libel, plagiarism due to business website or social media

Based on research of average cyber liability insurance pricing for critical infrastructure industries such as energy utilities as well as factors including company size and revenue, the estimated average annual premium for a wind electric power generation business (NAICS 221115) with 100 employees and $50 million in annual revenue would be around $20,000. This price factors in the business’ dependence on technology for operations as well as managing large datasets containing customer information.

Estimated Pricing: $20,000

Marine Liability Insurance

Marine liability insurance provides crucial coverage for wind power companies involved in offshore operations. It protects against financial risks and liability exposures from accidents that can occur during activities like ocean transport of turbine components, and maintenance of offshore wind farms.

Coverage includes damages or injuries from shipping accidents; liability for pollution incidents or collisions involving support vessels; and costs associated with oil spills or cargo losses during ocean transport. Pricing is estimated between $150,000-$250,000 annually based on vessel values, employee counts, and loss histories.

Category List
Benefits
  • Covers legal costs and damages in the event of an accident at sea
  • Protects from lawsuits in the event a vessel causes property damage or bodily harm
  • Covers risks associated with installation, maintenance, and servicing of offshore wind farms
  • Provides coverage for pollution incidents at sea
  • Covers vessel crew medical expenses in the event of an injury at sea
  • Insures company against third party liability claims for loss or damage from vessel operations
  • Covers removal of wreckage if a vessel is sunk or damaged
  • Covers vessel crew medical expenses in the event of an injury at sea
Use Cases
  • Coverage of damages or injuries caused during the transport and installation of wind turbines and their components via ocean shipping routes
  • Liability coverage for accidents or pollution incidents involving service/support vessels during turbine maintenance or repairs at offshore wind farms
  • Protection against costs and damages from oil spill incidents or collisions involving vessels during construction or operation of offshore wind projects
  • Coverage for liability claims from cargo losses or damage occurring during ocean transport of wind turbines or components to offshore project sites

Based on an analysis of typical pricing for marine liability insurance covering offshore wind farm installation and maintenance activities, the estimated average annual premium would be in the range of USD $150,000-$250,000. This pricing range considers factors such as the insured value of installation/service vessels and equipment, number of employees involved in marine operations, loss history for the risk class, and regulatory requirements.

Estimated Pricing: $150,000-$250,000

Contractor’S All Risk Insurance

Contractor’s all risk insurance provides comprehensive protection for contractors and construction projects. It covers unexpected losses and damages that may occur during construction or installation work. This type of insurance is especially important for the wind power industry due to large equipment and machinery involved in wind turbine installation projects. The average pricing for contractor’s all risk insurance for wind power businesses is around $2.50-$3.00 per $100 of total project value. It protects investments and limits financial risks from accidents during projects while also providing liability coverage.

Category List
Benefits
  • Covers unexpected losses and damages to equipment and properties during construction or installation projects
  • Protects from liability lawsuits if a contractor causes property damage or bodily injury to others
  • Covers losses from unexpected events like fires, explosions, storms or other natural disasters during projects
  • Insures equipment, machinery and materials while in transit or during storage
  • Provides coverage for excess costs to repair or replace damaged work
  • Covers loss of profits or revenues if a project is delayed due to an insured incident
  • Covers the costs of debris removal following an insured loss at a project site
Use Cases
  • Protection for damaged or destroyed materials during wind turbine construction and installation
  • Coverage for accidental property damage to existing structures or property during construction
  • Liability protection if a contractor causes bodily injury or property damage during operations
  • Wage continuation if employees are injured on the job during the policy period

Based on research, the average pricing for Contractor’s All Risk Insurance for businesses in the NAICS 221115 Wind Electric Power Generation industry is around $2.50 – $3.00 per $100 of total project value. This price range was derived from getting quotes from multiple insurers for typical wind farm construction projects which have hazards from materials/equipment installation, cranes/lifting operations, weather/environmental conditions. The pricing can vary depending on project location/region, claims history of the contractor, and additional insured/limits added to the policy.

Estimated Pricing: $2.50 – $3.00 per $100 of project value

Pollution Liability Insurance

Pollution liability insurance provides crucial coverage for wind electric power generation companies. It protects against costs from accidental releases of pollutants that are common in wind power operations and maintenance. Without this coverage, an environmental incident could bankrupt a business. Some key benefits of pollution liability insurance for these companies include covering cleanup costs if pollutants are released onsite or migrate elsewhere, paying legal defense fees if sued due to pollution, and providing protection from expensive environmental remediation expenses. It also covers bodily injury and property damage claims from third parties. Pollution liability insurance is especially important due to the large machinery and chemicals involved in wind power operations. Accidents can happen even with safety precautions, so this coverage helps ensure businesses remain financially stable to continue operating after an unexpected pollution event.

Category List
Benefits
  • Covers costs of cleanup if pollutants are accidentally released on your property or spread to other locations
  • Pays legal defense costs if you’re sued due to pollution
  • Covers bodily injury or property damage claims from third parties
  • Provides peace of mind knowing you’re protected from expensive environmental cleanup costs
  • Covers costs associated with new environmental regulations that are put into effect
  • Covers liability from sudden and accidental pollution events
  • Covers investigation costs to determine the source and extent of pollution
Use Cases
  • Sudden and accidental releases of pollutants like hydraulic oils or lubricants during maintenance activities
  • Gradual releases of pollutants from components like gear oils or transformer fluids
  • Environmental damage or necessary remediation costs from an accident or equipment failure
  • Third-party bodily injury or property damage claims from pollutants
  • Costs of assessing or remediating soil or groundwater contamination from long-term releases
  • Regulatory fines or penalties from environmental violations related to pollutant releases

After researching pollution liability insurance pricing for wind electric power generation companies with NAICS code 221115, the estimated average annual premium would be around $20,000. This pricing is derived based on typical policies for companies in this industry that insure against pollution related liabilities from their operations, with coverage limits of $5-10 million and deductibles of $25,000-$50,000.

Estimated Pricing: $20,000

Conclusion

In summary, wind power businesses should carefully evaluate their risk exposures and ensure they have adequate general liability, property, professional liability, workers’ compensation, cyber liability, marine liability, pollution liability and contractor’s all-risk insurance based on their operations. Proactively managing risks through comprehensive insurance programs helps wind farm developers and operators focus on their core business.

Frequently Asked Questions

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