Construction All Risks
Products > Construction All Risks
Construction All Risks (CAR) insurance provides coverage for physical damage sustained during the construction phase of an offshore wind farm.
This time period can last for several years, depending upon the size and particulars of the specific wind farm in question. It is also typical to include a Maintenance & Discovery (M&D) time period, which provides coverage for physical damage discovered during an initial period of operations, which origins can be traced to performance of ongoing maintenance obligations, and damages originating during the CAR time period, or at least prior to the end of the CAR time period.
Risks
The risks here are largely those of manufacturing, assembly, marine operations, and offshore construction. In some jurisdictions, it is contemplated that the offshore wind farm developer is also tasked with construction of the energy transmission assets (onshore/offshore substations, export cabling, etc.), the insurance of which would then also naturally be subject to the CAR insurance. Beyond this, the CAR insurance often will provide certain additional coverages, including coverages for sue and labour, removal of wreck, stand-by costs, offshore cancellation costs, and the like.
Safety and suitabililty
A key component of risk assessment during the CAR insurance is the involvement of Marine Warranty Surveyors (MWS) and third-party certification bodies. While MWS looks after the safety and suitability of the marine operations necessary for construction, the certification body makes sure that the various components of the offshore wind farm, or perhaps the overall wind farm in general, is suitably designed for the purpose intended. These service providers are key partners to both the underwriters and the insured throughout the construction process, minimizing the risk for all parties.