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Understanding Type Certificate: What it is and Why it Matters to Insurance Companies?

A type certificate in wind turbine refers to a document that certifies that a particular model or type of wind turbine meets the design and safety standards set by the regulatory authorities. This certificate is issued by an independent third-party certification body, such as DNV GL, Bureau Veritas, or TÜV SÜD, after conducting rigorous tests and inspections to ensure that the wind turbine meets all the necessary requirements.

Type certificate is an essential document that plays a critical role in ensuring the safety and reliability of various products, including aircraft, automobiles, and medical devices. It serves as a testament to the design, manufacturing, and performance standards of a specific product, and its issuance involves a rigorous process that involves extensive testing and evaluation. In this article, we will delve into what a type certificate is, why it matters, and how it impacts the products we use every day. Whether you are an engineer, a product designer, or simply a curious consumer, understanding type certificates is crucial for making informed decisions about the safety and reliability of the products you interact with.

What is Type Certificate?

The type certificate includes detailed information about the wind turbine model, including its design, specifications, and performance characteristics. It also includes information about the testing and certification process, including the standards and regulations that were used to evaluate the turbine.

Having a type certificate is important for wind turbine manufacturers, as it ensures that their products meet the necessary safety and quality standards. It also helps to build trust with customers and investors, who can be assured that the wind turbine has been independently verified to be safe and reliable. Additionally, it makes it easier for manufacturers to obtain permits and approvals for wind farms, as regulators often require turbines to have valid type certificates before they can be installed.

How long does it take to get the type certificate for a phototype turbine?

The time it takes to obtain a type certificate for a phototype turbine can vary depending on a variety of factors, such as the complexity of the design, the completeness of the documentation, the testing and certification requirements, and the availability of the certification body.

Generally, the process of obtaining a type certificate for a phototype turbine can take several months to a year or more. The manufacturer must submit a detailed application to a certification body, which will then review the documentation and perform various tests and inspections to ensure that the turbine meets the required standards.

Source: https://www.dnv.com/services/wind-turbine-type-certification-70124

The certification process typically includes a design assessment, prototype testing, and a factory inspection, which can take several weeks or months to complete. The certification body may also require additional testing or modifications to the turbine before issuing the type certificate.

It should be noted that obtaining a type certificate for a phototype turbine can be a complex and costly process, as it requires significant resources and expertise. However, having a type certificate is important for manufacturers, as it provides assurance to customers and investors that the turbine meets the necessary safety and performance standards.

Why do insurance underwriters always request for a type certificate as a necessary document for underwriting?

Insurance underwriters insist on obtaining a type certificate as a necessary document for underwriting wind turbine projects because it provides independent verification that the turbines have been designed, tested, and manufactured to meet certain safety and performance standards. It is important for project company to confirm that the particular turbine model is a “proven technology” and has been installed in other project(s). Normally we can find out these information from the turbine OEM’s website, for example, Vesta’s turbine track record can be located at https://www.vestas.com/en/products/track-record#accordion-b5136bb023-item-387e2a440e

Wind turbine projects involve significant capital investments and long-term operations, and insurers need to assess and evaluate the risks associated with the project before providing coverage. Obtaining a type certificate is one of the ways that insurers can verify the quality and reliability of the turbines, which helps them to assess the likelihood of potential losses or damage.

The type certificate provides detailed information about the turbine model, including its design, specifications, and performance characteristics. It also includes information about the testing and certification process, which helps insurers to verify that the turbines have been thoroughly tested and evaluated for safety and performance.

Having a type certificate can also help to reduce the insurance premiums for wind turbine projects, as it can provide insurers with greater confidence in the quality and reliability of the turbines. This, in turn, can make it more attractive for investors and lenders to finance the project, as it reduces the perceived risk associated with the project.

Overall, obtaining a type certificate is an important step in the insurance underwriting process for wind turbine projects, as it helps insurers to assess and manage the risks associated with the project, and it provides assurance to all stakeholders that the turbines have been designed and tested to meet the necessary safety and performance standards.

How can the project company get insurance cover required by project documents while they are waiting for the certificate?

It is true that obtaining a type certificate for wind turbines can take a significant amount of time, and it may not be feasible to wait until the certificate is issued before obtaining insurance coverage for the project. In such cases, project companies can explore other options to obtain insurance coverage while they are waiting for the certificate.

One option is to obtain coverage through a builder’s risk policy or a delay in start-up policy. These types of policies are designed to provide coverage for property damage or loss of revenue during the construction phase of the project, and they can be customized to meet the specific needs of the project.

Another option is to obtain coverage from an insurer that specializes in wind energy projects. These insurers may be willing to provide coverage based on the project’s overall design and specifications, even if the type certificate has not yet been issued.

In either case, it is important for project companies to work closely with their insurance broker or advisor to identify the most appropriate coverage options and ensure that the policy terms and conditions align with the project’s specific needs and requirements.

It should be noted, however, that obtaining insurance coverage without a type certificate may be more expensive or may come with certain limitations or exclusions. Therefore, it is recommended that project companies work towards obtaining a type certificate as soon as possible to ensure that they can obtain the most favorable insurance coverage terms and conditions.

Can’t get an insurance qutoation? Please reach out experienced advisors at: leo.c@projectriskinsights.com