Hydro Insurance

Renewable Energy Insurance

CNC Asset, the market leading broker in machinery breakdown, is dedicated to providing a professional broking, advisory and claims service for businesses working in the renewable energy sector including those involved in Hydro-electric from large Hydro to micro and small Hydro. CNC Asset are specialists in Hydro-electric insurance and have arranged bespoke wordings and coverage for their owner, developer and installer clients.

CNC Asset have an unparalleled understanding of electrical and mechanical breakdown of machinery and its component parts as shown by their unique position of being providers of electrical and mechanical breakdown insurance to the Royal Air Force.

Not only has CNC Asset secured unique coverage but it is also trusted by insurers to underwrite hydro and issue policies for the post commissioning operational business. This speeds up the whole quoting process and allows fine tuning of the policy and the premium. CNC Asset's insurers are A rated or better and are fully accepted by banks and lenders.

We currently insure owners, developers, installers and contractors for their respective risks. These risks are wide and various and can range from liability to transit of the components, to breakdown and physical damage both prior to and post commissioning. For you to be properly covered, each of these areas needs to fully discussed and appraised.

With Hydro being the world's number one source of Renewable Energy and approximately 35% of the UK's Renewable Energy being provided by Hydropower, this remains a key part of the UK's electrical generation potential.

CNC Asset can insure:

Pumped Storage

This is the oldest large scale energy system and operates by using water being pumped back to a reservoir from which it came. Energy is created by the down flow.

Storage

Here Hydropower derives its energy from a storage reservoir which does not rely completely on seasonal rainfall.

Large Hydro

Large scale Hydropower stations (run of river, dams or reservoir storage) are built to last many years and are simple to maintain and service.

Micro and Small Hydro

The UK Government focus on micro generation and renewed interest in developing many disused water wheel sites and small off-grid Hydro sites has led to a growth in this area. Recent technological developments have provided more opportunities, for example siphon propeller and Archimedean Screw turbines.

Within each of the insurance areas where coverage is required there are questions that could and should be addressed:

For owners of Hydro

To what extent does the policy protect the owner in the event the manufacturer is insolvent at the time of a breakdown claim?
When does the business interruption part of the cover respond?
What is meant by electrical and mechanical breakdown?
When, if at all, does average apply to claims?
Is the DNO connection fully covered if it is off your land?

For developers, installers and contractors of Hydro

At what point in time is the site your responsibility?
Are you properly protected against vandalism?
What happens if the plant fails during testing?
What protection is there if the installation plans are found to be incorrect?

Examples of the coverage available through CNC Asset includes:

Construction phase

Construction and Erection All Risks
Failure during testing
Delay in start up (also known as Business Interruption/Advanced Loss of Profits)
Public Liability
Pollution Liability
Employers Liability
Marine Cargo / Transit

Operational Phase (for the owners)

All risks of physical damage
Electrical and Mechanical Breakdown
Business Interruption (including loss of FITs)
Public Liability
Pollution Liability
Products Liability
Directors and Officers Liability

How CNC deal with claims

CNC Asset have their own specialist claims unit and you should report all potential claims as soon as possible after you become aware of it. The claims unit includes claims engineers who can advise on the validity of electrical and mechanical breakdowns that, for example, are unseen to the naked eye.

You should always take precautions to avoid using any machinery that you suspect is already damaged. If in doubt, then call CNC Asset claims team for advice.

Causes of Hydro claims:

Failure of water turbine
Damage from water surges
Water Hammer Effect

Claims Example:

Bearing failure causes damage
Type of equipment:	Hydro-electric
Age of equipment:	9 years old
Total claim paid:	£15,675 Material Damage
	£40,000 Loss of Revenue
During operation of the plant a bearing failed causing damage to the turbine rotor and drive end bearing. In addition to the material damage aspect of the loss the insured also incurred a downtime period of approximately 17 weeks with the associated costs. Much of the business interruption costs were recoverable under the policy.