February 15, 2017 | Cargo Insurance, Industry Insights

Cargo Insurance in Action: Oversized Coverage for Wind Turbine Blade Damaged During Transportation

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In the latest edition of Roanoke Trade’s “Cargo Insurance in Action” series where our goal is to provide you with insight as to the type of exposures and incidents that can result in substantial losses and to underscore the importance of carrying Cargo insurance, we’re sharing the details of a recent claim involving the shipment of wind turbine blades.

As businesses continue to search for alternative energy sources bringing significant opportunities for wind power firms, the transportation of wind turbine blades into the United States can be an oversized and complex logistical challenge. Single blades can exceed 200 feet in length. Oftentimes these shipments originate in Germany or China and then must travel hundreds of miles over highways and roads to their final destination. A lot can go wrong when moving enormous wind turbines.

In this case, a shipment involving a wind turbine blade shipped from China to Nova Scotia via Iowa. This transport represented one piece in a large project involving many shipments to a new wind farm. The blade made its way safely to Nova Scotia when the trucker delivering the blade, unfortunately, backed into the turbine tower. As a result, the blade was cracked and had to be replaced. The loss was in excess of $500,000 plus expenses, which the insurer paid. The claims subrogation team was successful in recovering approximately $120,000 from the trucker who was responsible for the damage.

Because of the multimodal nature of most wind turbine shipments, control over the process is important. Shippers, consignees, and transportation and logistics partners are all engaged in the planning and routing. Coordination with local transportation authorities and permits to transport oversized loads must take place, and you need drivers who have the qualifications to pilot vehicles that can transport wind energy equipment. Equally important is having the right type of coverage as demonstrated in the claim above. An all-risk Cargo insurance policy is designed to protect against most losses once the equipment leaves the manufacturer’s facility and extend until the cargo is delivered at the job site. A Cargo policy can be tailored based on the type of goods, modes of transportation, desired coverage, terms of sale and risk tolerance.

About Roanoke Trade

Roanoke Trade has the experience and expertise to customize a Cargo insurance policy to respond to a shipper’s client’s needs, including complex transportation requirements such as those involving oversized project cargo. For a review of your Cargo insurance program to determine if it addresses your risk profile, please contact one of our professionals at 1-800-ROANOKE (800-762-6653).  

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