Third Party Liabilities

Both during the construction phase and the operational phase of an offshore wind farm, it is possible to face potential exposure to liabilities to other third parties.

Third Party Liabilities (TPL) insurance offers coverage against these potential third-party claims, as they may relate to bodily harm to other persons, or damage to the existing and adjacent property of others. Normally, this coverage would not be extended to liabilities imposed by an agreed contract, or any fines, penalties, punitive/exemplary damages, or the like.

Unlike the offshore oil and gas industry, the offshore wind industry also has the benefit of having materially less third-party liability exposure in respect of the risks of discharges, pollution, contamination, etc. Nevertheless, when a floating turbine needs to go to port for necessary repairs, these occasions may well be situations where the risk of potential third-party liability exposure is increased.