Offshore Wind Installation: Equipment Protection

Why equipment protection matters in offshore wind installation

Offshore wind installation is a high-value, high-risk phase of a project. A single loss can delay commissioning, trigger liquidated damages, and create contractual disputes across multiple parties (developer, EPC, marine warranty surveyor, vessel owners, OEMs, and subcontractors). The equipment involved is expensive, specialised, and often exposed to harsh marine conditions long before it is energised.

“Equipment protection” is really two things working together:

• Practical risk control (planning, handling, storage, maintenance, and monitoring)

• Appropriate insurance (so that when something still goes wrong, the project can recover financially)

This guide focuses on the installation stage and the equipment most at risk, with a UK lens (contracts, marine practices, and common insurance structures).

What counts as “installation equipment” offshore?

During offshore wind installation, equipment protection typically covers (or should consider) the following categories:

• Wind turbine components: blades, nacelles, hubs, towers, internal electrical systems

• Foundations: monopiles, jackets, transition pieces, grouted connections

• Cables: inter-array cables, export cables, joints, terminations, cable protection systems

• Offshore substations: topsides, transformers, switchgear, control systems

• Installation tools and temporary works: lifting frames, spreader bars, blade yokes, skidding systems, temporary supports, sea-fastening

• Specialist vessels and plant (often insured separately): jack-up vessels, heavy lift vessels, cable lay vessels, barges, cranes, ROVs

• Onshore staging assets: port cranes, SPMTs, storage racks, temporary warehouses

The key point: losses can occur before equipment is “part of the works” (e.g., in transit or storage), during lifting/installation, and after installation but before handover.

The main threats to offshore wind equipment

Offshore wind projects face a blend of classic construction risks and uniquely marine exposures.

1) Marine perils and weather windows

Saltwater, wave action, wind loading, and unpredictable sea states create constant stress on equipment and operations.

• Heavy weather can damage components on deck

• Vessel motion increases lifting risk

• Weather delays increase time in storage or at sea, raising exposure

2) Handling and lifting failures

Many of the largest claims arise from lifting incidents.

• Incorrect rigging or lifting points

• Crane overload or mechanical failure

• Human error during tandem lifts

• Sudden gusts during blade lifts

3) Transit and logistics damage

Offshore wind relies on complex logistics: factory to port, port to vessel, vessel to offshore site.

• Road transit vibration and shock

• Port handling damage (forklifts, cranes, SPMTs)

• Sea-fastening failure on voyage

• Container or packaging failures

4) Storage and corrosion

Equipment may sit at ports or marshalling yards for weeks.

• Corrosion from salt-laden air

• Water ingress through packaging

• UV damage to composites

• Theft or vandalism in unsecured yards

5) Cable damage (a frequent, costly issue)

Cables are vulnerable at multiple points.

• Over-bending during lay

• Tension issues and crushing

• Damage at joints/terminations

• Third-party damage from anchors or fishing gear (depending on stage)

6) Defects and commissioning interface

Some losses are triggered by latent defects that appear during installation or early testing.

• Manufacturing defects revealed under load

• Incorrect torqueing or assembly

• Contamination in hydraulic systems

Insurance treatment of defects can be complex, so it’s important to align contract responsibilities and policy wording early.

Risk controls that reduce losses (and help insurance outcomes)

Insurers and loss adjusters look for evidence of robust controls. Strong controls can also support better terms.

Pre-installation planning and governance

• Clear method statements and lift plans for critical operations

• Defined responsibilities across OEMs, EPCs, and marine contractors

• Marine Warranty Surveyor (MWS) involvement where required

• Documented change control for deviations

Packaging, preservation, and condition monitoring

• OEM-approved packaging and preservation procedures

• Humidity indicators, desiccants, and sealed transport

• Shock and tilt indicators on sensitive components

• Regular inspections with photo evidence

Port and marshalling yard controls

• Secure, fenced storage with CCTV and access logs

• Proper racking for blades and towers

• Ground bearing capacity checks for heavy components

• Fire protection and hot works controls

Lifting and load-out controls

• Certified lifting gear and regular inspection records

• Competence management for riggers and crane operators

• Trial lifts and toolbox talks

• Weather limits and stop-work authority

Sea-fastening and voyage management

• Engineered sea-fastening designs

• Pre-sail inspections and sign-off

• Voyage planning and weather routing

• Monitoring during transit

Cable handling controls

• Bend radius compliance and tension monitoring

• Use of appropriate chutes, rollers, and quadrant systems

• Detailed jointing QA/QC and clean environments

• As-laid surveys and burial verification

Insurance options for offshore wind installation equipment

The “right” structure depends on contract model, project size, and risk appetite. Typically, equipment protection is addressed through a combination of covers.

Construction All Risks (CAR) / Erection All Risks (EAR)

Often the core project policy.

Usually covers:

• Physical loss or damage to the works during construction/erection

• Onsite and sometimes offsite storage

• Testing and commissioning (if included)

Watch-outs:

• Definition of “contract works” and when cover attaches

• Limits for offsite storage and transit

• Defects exclusions and resulting damage treatment

• Separate deductibles for windstorm, cable, or marine operations

Marine Cargo / Project Cargo

Critical for equipment in transit.

Usually covers:

• Factory to port to offshore site transit

• Loading/unloading risks

• Sometimes includes delay or storage extensions

Watch-outs:

• Packaging requirements and survey conditions

• Institute Cargo Clauses (A/B/C) basis and exclusions

• “Delay” is typically excluded (but financial impacts can be insured elsewhere)

Marine Hull and Machinery (vessels)

Vessels are typically insured by owners, but projects should verify contractual responsibilities.

Watch-outs:

• Who bears risk for damage to chartered vessels?

• Knock-for-knock clauses and their interaction with insurance

Delay in Start-Up (DSU) / Advanced Loss of Profits (ALOP)

This is where equipment damage becomes a financial problem.

DSU can respond to:

• Lost revenue due to insured physical damage causing delay

• Increased costs of working (subject to terms)

Watch-outs:

• DSU triggers depend on an underlying insured damage event

• Waiting periods and maximum indemnity periods

• Critical path analysis requirements

Third-party liability and pollution

Installation can cause third-party losses.

• Damage to third-party property (e.g., subsea infrastructure)

• Injury to third parties

• Pollution events (fuel spills)

Watch-outs:

• Contractual indemnities and cross-liability

• Offshore exclusions in standard liability policies

Plant and equipment insurance (contractors)

For contractor-owned tools and plant (cranes, ROVs, temporary equipment) not included in project CAR.

Key policy wording points to get right

Equipment protection often fails in the details. These are common friction points.

When does cover attach?

Clarify whether cover begins:

• At the manufacturer’s premises

• At first transit

• Upon arrival at the marshalling port

• Only once equipment is at the offshore site

If the project assumes “it’s covered,” but the policy attaches later, you can end up with a costly gap.

Offsite storage and marshalling limits

Ports and marshalling yards can hold hundreds of millions of pounds of equipment.

• Confirm offsite storage sub-limits

• Confirm named locations and security requirements

• Confirm duration limits and reporting obligations

Transit and loading/unloading

If project cargo is separate from CAR/EAR, ensure there is no “grey zone” between policies.

• Define handover points

• Align deductibles and conditions

• Ensure consistent insured parties

Defects and faulty workmanship

Many policies exclude:

• The cost of rectifying a defect itself nBut may cover:

• Resulting damage to other insured property

The exact outcome depends on wording. For offshore wind, where components are highly engineered, this is a major area to review.

Cable exclusions and endorsements

Cable claims can be high frequency.

• Check whether cable testing, jointing, and burial are conditions

• Confirm coverage for re-lay and recovery

• Confirm deductibles specific to cables

Weather-related deductibles

Windstorm and heavy weather deductibles can be significant.

• Confirm thresholds (wind speed, wave height)

• Confirm separate deductibles for named perils

Practical checklist: protecting equipment across the installation lifecycle

Use this as a quick internal audit.

Factory and pre-shipment

• OEM preservation and packaging confirmed in writing

• Shock/tilt indicators installed

• Pre-shipment survey completed

• Serial numbers and asset register created

Road/rail transit to port

• Approved hauliers with route surveys

• Escort requirements confirmed

• Weather and bridge restrictions planned

• Photo evidence at handover points

Port storage and marshalling

• Security: fencing, CCTV, access control

• Storage method: racks, cradles, ground protection

• Corrosion control: covers, humidity checks

• Fire and hot works controls

Load-out and sea transit

• Engineered sea-fastening signed off

• Lift plans and crane certifications verified

• Weather routing and go/no-go criteria set

• Condition monitoring during voyage

Offshore installation

• Competence and certification checks

• Stop-work authority and weather limits enforced

• Tool control and dropped object prevention

• QA/QC sign-offs at each assembly stage

Cable installation

• Tension and bend radius monitoring

• Jointing QA/QC and clean environment

• As-laid survey and burial verification

• Protection against third-party interference

Claims: what to document to protect recovery

When a loss happens offshore, the quality of documentation often determines the speed and success of the claim.

• Immediate incident report and timeline

• Photos/video from multiple angles

• Weather data and vessel logs

• Lift plans, method statements, and toolbox talk records

• Maintenance and certification records for lifting gear

• Surveyor reports (MWS, cargo survey)

• Evidence of mitigation steps and costs

Also ensure notifications are made promptly to all relevant insurers (CAR/EAR, cargo, DSU, liability) to avoid late-notification disputes.

Common contract and responsibility pitfalls

Offshore wind involves layered contracts. Equipment protection can fall between the cracks if responsibilities aren’t explicit.

• OEM vs EPC responsibility for damage during installation

• Charterparty terms and knock-for-knock arrangements

• Who insures what during transit and marshalling

• Subcontractor insurance adequacy and insured party status

A simple rule: if you can’t explain who pays after a loss in one sentence, you likely have a gap.

FAQs: Offshore wind equipment protection

Is offshore wind installation equipment covered under standard construction insurance?

Often it can be, but only if the policy definition of contract works, attachment point, and extensions (transit/offsite storage/testing) match the project reality. Many projects also use separate project cargo insurance.

What’s the biggest cause of equipment losses offshore?

Lifting and handling incidents are a major driver, alongside transit damage and cable-related losses. Weather can amplify all of these.

Do we need separate insurance for cables?

Not always separate, but cables frequently have special endorsements, conditions, and deductibles. It’s important to review cable wording carefully.

Does insurance cover delays caused by damaged equipment?

Physical damage policies cover repair/replacement. Financial loss from delay is typically handled by DSU/ALOP, and only when the delay results from an insured damage event.

What evidence helps most in a claim?

Clear handover documentation, photos, weather/vessel logs, lift plans, and proof of compliance with policy conditions (surveys, security, preservation) are consistently valuable.

Next step: align risk controls, contracts, and insurance

Offshore wind installation is a tight choreography of logistics, marine operations, and engineering. The best equipment protection comes from aligning:

• Contract responsibilities and handover points

• Risk controls and QA/QC evidence

• Insurance structure and wording

If you’re planning a project or reviewing an existing programme, a structured insurance review alongside your installation methodology can highlight gaps before they become expensive.

Call to action: If you’re a UK offshore wind contractor, developer, or OEM and want to sanity-check your equipment protection and insurance structure, speak to a specialist broker who understands marine construction, CAR/EAR, and DSU exposures.