Liability & Insurance

The wind turbine owner faces a liability if his or her property poses any threat to the general public.  Although chances are extremely remote, a wind turbine could throw a blade or the tower could collapse onto neighboring property.  In addition, because of its visibility, a wind turbine may attract unwanted visitors, especially children.

Many homeowner insurance policies can be extended to insure against a liability brought about by damage or injury caused by a wind turbine. The wind turbine itself can be protected by insurance coverage against damage as a result of fire, lightning, ice or theft. Because insurance coverage varies from company to company, you should check with your agent for specifics.

To minimize the likelihood of damage or injury (and possibly the cost for insurance), you should consider reserving a set-back distance of at least one tower height from property lines and structures, and building a safety fence or anti-climb device around the wind turbine tower. Keeping your wind equipment in top shape should prevent most problems.

An indemnity is an agreement between two parties against loss or damage arising from some act or some assumed responsibility. Utilities often want customers to indemnify them for any potential liability arising from the operation of the customer’s generating facility. Indemnity provisions should be fair to both parties. Look for language that says, "…each party shall indemnify the other…" rather than "…the customer shall indemnify the utility…"

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