Adjusting Onshore Wind Renewable Energy Losses: Practical Experience You Can Call On
As the UK pushes towards net zero, onshore wind capacity continues to grow – now exceeding 14GW, with more projects in the pipeline. With that growth comes greater exposure to risk, and when losses happen, they can be complex, high-value, and technically demanding.
Over the years we have built solid experience handling onshore wind claims – from property damage and machinery breakdown to business interruption, liability, and construction all risks (CAR).
Working alongside insurers, MGAs, and brokers, we help bring claims to resolution efficiently, keeping projects on track and relationships intact.
In this article, we share the main types of onshore wind claims we’ve dealt with, along with practical examples and relevant legal considerations.
1. Material Damage & Machinery Breakdown
The mechanical complexity of turbines – particularly gearboxes, generators, and blades – makes them susceptible to failure. Losses often result in prolonged downtime due to parts availability and site access restrictions.
Case Study: Gearbox Failure, Scotland
A 2.3MW turbine suffered catastrophic gearbox failure during high wind conditions. Our engineers diagnosed premature bearing fatigue linked to oil contamination. The claim included:
We worked with OEMs and the insured to establish causation, reduce indemnity spend via reconditioned parts, and recover subrogation potential from the maintenance provider.
Legal Insight: Yorkshire Water Services Ltd v Sun Alliance and London Insurance plc [1997]
This case reinforced the principle that insurers are liable for breakdowns caused by hidden defects in materials or workmanship, even where the defect is long-standing but the failure is sudden. A key argument in renewable claims involving latent component defects.
2. Business Interruption (BI)
Downtime in the renewable sector has direct revenue implications. We routinely assess lost revenue using SCADA data, wind resource models, and Power Purchase Agreements (PPAs) to verify entitlements and causation.
Case Study: BI from Transformer Fire
A transformer fire at a 9-turbine site led to a 6-month outage. Initial loss estimates exceeded £1.1m in lost earnings.
Our forensic accountants reviewed SCADA data, availability schedules, and curtailment records to adjust the BI quantum to £860k, after factoring in curtailment exclusions in the PPA and grid-availability clauses.
3. Liability Losses
Wind farms interface with public roads, footpaths, and third-party land – creating exposure for injury and property damage. We respond rapidly to protect the insured’s reputation and manage liability risk.
Case Study: Blade Fragment Strike on Adjacent Farmland
During a storm event, a turbine shed part of its blade, which struck fencing and livestock on neighbouring land.
We coordinated site attendance with HSE and the O&M, arranged for independent metallurgical analysis, and negotiated a rapid liability settlement for property damage and veterinary costs. The O&M warranty was subsequently triggered for cost recovery.
Legal Insight:
It is important that turbine operators can demonstrate robust maintenance and inspection regimes to avoid exposure to claims by neighbours and third parties.
4. Construction All Risks (CAR)
From foundation installation to tower erection, we manage CAR losses across project phases. Claims can include defective design, third-party damage, theft, or delay in start-up.
Case Study: Crane Topple During Erection
While lifting a 60m blade in Northumberland, a crawler crane toppled due to ground instability. The turbine was undamaged, but the crane was a total loss and the project delayed.
We investigated geotechnical reports, reviewed lift plans, and collaborated with principal contractors, engineers, and HSE. Our early engagement helped resolve the CAR and DSU elements with minimal dispute and schedule impact.
5. Theft & Vandalism
Remote locations increase exposure to metal theft and vandalism. Insurers rely on us to ensure rapid mitigation and cost-effective resolution.
Case Study: Cable Theft from Substation
An organised theft at an 'under-construction' site saw 200m of HV cabling removed overnight.
We provided a detailed loss scope, validated security provisions under policy warranties, and assisted in recommending enhanced deterrents for future risk management.
Why Specialist Lines International?
Our renewable energy team combines:
We offer a joined-up, technically robust approach to claims that enhances insurer confidence, supports insureds, and ensures fair outcomes. Whether the loss involves a single turbine or a 40MW wind farm, we deliver clarity and control from first notification to final settlement.
