Windmill Insurance
Windmills can be highly profitable equipment when added to your farm, but they can also introduce new possible risks and liabilities that need protection.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
Installing a windmill on your farm could be a profitable decision, but there are several risk factors you need to take into account. Without the proper coverage for your windmill, you could end up having to pay potentially hefty costs out of your own pocket. Fortunately, you can get the right protection through a windmill insurance policy.
An independent insurance agent can help you find the right windmill insurance. They'll get you matched to a policy that considers your unique farm's needs. But first, here's a deep dive into windmill insurance.
Possible Windmill Risks and Liabilities
When insuring your windmill, it can be helpful to consider potential risks and liabilities that can arise from having at least one on your property. Windmills can lead to a wide variety of possible risks or liabilities, including:
- Farm worker, customer, or other visitor injuries
- Potential third-party lawsuits related to property damage
To help protect your farm's workers, you'll first need to ensure you're set up with the right workers' compensation insurance. Laws for farms and agricultural businesses vary by state, but you may be required to have coverage if you have as little as one farmhand or employee. A workers' comp policy could help protect your farm against employee lawsuits if one of your employees gets injured while working on or near your windmill, such as due to a slip and fall.
How to Insure a Windmill
Insuring your overall farm with a farm insurance policy is one thing, but a windmill on your property introduces an entirely new set of potential risks. Windmills can lead to unexpected losses due to operational issues, vandalism, fire damage, and more.
When looking for the right windmill insurance, an independent insurance agent is your greatest ally. You'll need to have the following information ready to find a policy:
- The windmill manufacturer's insurance policies: Know how much liability falls on the windmill manufacturer's shoulders and how much you're responsible for.
- The number of windmills you need to insure: Be ready with the total number of windmills you'll need insurance for, including your plans for the installation of more windmills in the future.
- The safety protocols you already have in place: Tell your agent about any safety protocols and procedures you have in place to reduce risks on your farm.
Your independent insurance agent can use this information to help find or create a windmill insurance policy that's tailored to your unique needs.
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What Does Windmill Insurance Cover?
When it comes to insuring a windmill or wind turbine, it's helpful to understand what's actually included in your coverage. Windmills are just one specific component of your overall farm, but they still come with several possible exposures that must be considered. As such, windmill insurance combines elements of farm insurance and business insurance and typically includes:
- Inland marine insurance: This covers the parts of your windmill while they're in transit between locations, such as on the way to being installed on a new area of your farm.
- Builders risk insurance: This covers the windmill and its parts when it's being built and installed against theft, vandalism, and other damage or destruction.
- Equipment breakdown insurance: This will provide a degree of coverage if your windmill's equipment breaks down, which could otherwise lead to financial losses for your farm.
- General liability insurance: This protects against bodily injury and property damage claims filed against your farm by third parties who claim to have been harmed by your windmill.
What Doesn't Windmill Insurance Cover?
Like any other type of farm insurance, windmill insurance also comes with certain elements that are excluded from coverage. You can expect a windmill insurance policy to exclude the following:
- Malicious or intentional acts by the owner
- Natural wear and tear
- Flood damage
- Earthquake damage
To cover your windmill against natural wear and tear, you'll likely have to refer to its extended warranty or budget for making ongoing repairs throughout its lifespan. Also, to protect any of your farm equipment and structures against natural flood damage or earthquake damage, you'll most likely need separate flood insurance and earthquake insurance policies. Most types of insurance policies exclude damage from these natural disasters.
How to Find Windmill Insurance
You can often find coverage for your windmills through most carriers that offer general farm and ranch insurance policies. But you can also work together with an independent insurance agent in your area. These agents know exactly where to find the right coverage for your windmill and any other elements of your farm or business in need of protection.
Why Work Together with an Independent Insurance Agent?
An independent insurance agent can shop and compare windmill insurance policies from many different carriers who offer coverage near you. They'll look for the policy that offers the best overall blend of coverage and cost. And down the road, they'll still be there for you to file insurance claims or update your coverage as necessary.