Managing Renewable Construction Claims with Confidence

Managing Renewable Construction Claims with Confidence
June 4, 2026 11 mins

Managing Renewable Construction Claims with Confidence

Managing Renewable Construction Claims with Confidence

Construction phase claims are rising as renewable projects grow larger, more complex and more exposed. Understanding where risk concentrates and how earlier, integrated decisions can reduce loss is central to delivery certainty, financing confidence and long-term insurability.

Key Takeaways
  1. Claims data shows that severity, duration and delay-in-start-up exposure — not just frequency — are driving the true cost of construction losses.
  2. Many claims stem from routine construction activities interacting with weather-exposed sites, compressed schedules and complex lifting operations.
  3. Pre‑loss preparation, including early integration of risk engineering, governance, insurance strategy and claims insight across the construction phase, is critical to limiting disruption, losses and delay in start-up exposure.

Renewable energy construction is accelerating, but construction phase risk management has emerged as a defining constraint on predictable project delivery. Losses occur at the point of maximum exposure. This is before assets benefit from operational redundancy, proven performance or stable cash flows. As projects expand in size, geography and technical ambition, construction-phase incidents are becoming more disruptive, harder to resolve and more consequential than insured loss alone would suggest.

A Proactive Approach to Construction-Phase Risk

Construction phase incidents increasingly shape outcomes well beyond the site. Renewable construction claims now influence financing certainty, insurance pricing and stakeholder confidence. They also amplify delay in start up (DSU) exposure, tightening the link between construction risk management and delivery viability.

Many of the most influential risk decisions are made before construction begins. Design choices, contracting structures, sequencing and governance established early in the lifecycle can help determine whether losses are absorbed or compounded when exposure peaks.

“The best time to manage renewable construction claims is long before any work commences. It starts with the decisions made during the development and design phase,” says Patrick Behan, Aon’s National Renewables Energy Leader in Australia. “Early engagement with your insurance advisor is key to identifying where risk will concentrate — and, more importantly, to understanding how project decisions shape potential claims and insurance outcomes.”

As claims rise and exposures concentrate, renewable energy project insurance and wind construction insurance are being recalibrated around construction phase risk. Early alignment between insurance strategy and construction-phase risk management is key.

“What we’re seeing across renewables construction is not just more claims, but different claims — driven by scale, weather exposure and more complex delivery models,” says Mona Barnes, Global Head of Claims. “That means risk decisions need to shift earlier in the project lifecycle.”

What Renewable Construction Claims Data Signals

Claims data provides a clear window into where construction phase risk is concentrated, and why outcomes diverge across projects and portfolios. The signals extend beyond headline frequency to reveal structural exposure, execution pressure and the effectiveness of governance during peak construction.

  • Geographic Hotspots

    Construction‑phase claims are not evenly distributed across renewable portfolios. Losses concentrate where project scale, aggregation exposure and delivery intensity converge.

    Perceived “hotspots” reflect more than loss occurrence alone. They are also shaped by the maturity of claims reporting, documentation standards and governance practices. Markets with clearer reporting thresholds and stronger claims discipline tend to surface more incidents, reinforcing that data transparency itself functions as a meaningful risk signal.

    Taken together, these patterns point to structural construction‑phase exposure driven by how projects are designed, sequenced and governed — not isolated geographic anomalies.

  • Claim Severity and Duration

    Claim severity and duration provide clearer insight into construction‑phase risk than frequency alone.

    Construction‑phase losses typically exhibit longer claim tails than operational incidents, particularly where damage occurs during testing or commissioning. Extended duration amplifies DSU exposure, prolongs financing uncertainty and increases friction between developers, lenders, contractors and insurers.

    In practice, it is severity and duration rather than headline claim counts that define the economic impact of construction‑phase losses and shape stakeholder confidence throughout delivery.

  • Data Maturity and Loss Mechanisms

    Construction losses rarely stem from a single cause. Loss mechanisms are broadly consistent across regions and technologies, indicating systemic construction‑phase vulnerabilities rather than market‑specific issues.

    Impact‑related and accidental damage dominate portfolios, pointing to common exposures during build‑out, including lifting operations, staged installation, temporary works and transit. These losses frequently arise from routine construction activities interacting with compressed schedules and exposed environments.

    At the same time, the persistence of unattributed or broadly categorized loss causes highlights gaps in incident documentation, investigation and accountability. Data maturity — how clearly losses are recorded, attributed and governed — influences recoverability, dispute duration and long‑term pricing confidence.

+40%

Claim activities in renewable energy construction continued to increase in 2025, exceeding pre-pandemic levels by 40%.

Source: Aon Claims Copilot

Learn More

“We consistently see stronger resilience to major loss events where stakeholders prioritize pre loss preparation early in the construction phase and deploy claims preparation immediately after an incident,” notes Clarence Ting, Global Claims Leader, Construction & Infrastructure.

Why Construction Phase Claims are Escalating in Renewable Energy Projects

The escalation in renewable construction claims reflects delivery realities, not simply the assets being built.

As scale increases, projects are being executed under tighter tolerances, with less flexibility to absorb disruption once construction is underway. Several structural factors are consistently intensifying loss potential during the build phase:

  1. Scale and Technology Change
    Larger turbines, taller structures and modular designs introduce new failure modes during construction. Emerging technologies, including battery energy storage systems (BESS), hydrogen and floating wind, add underwriting uncertainty before operational performance and repair pathways are established.
  2. Speed and Schedule Compression
    Compressed schedules reduce buffers for testing and remediation. Shortened commissioning phases increase sensitivity to disruption at peak exposure.
  3. Supply Chain and Execution Pressure
    Skills shortages and new contractor entrants increase reliance on disciplined governance, quality control and interface management. When disruption occurs, constrained supply chains extend repair timelines and inflate DSU losses.
  4. Aggregation Risk
    Larger project footprints and serial construction increase the likelihood of repeat or multi-unit losses from single defects, weather events or process failures.

11-13

Average claim duration is 11–13 months, with complex claims extending beyond 24 months, reinforcing why markets with more claims visibility appear more prominent.

Source: Aon Claims Copilot

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Together, these factors compound quickly during construction.

Under these conditions, installation defects and human error escalate quickly. In offshore wind, contractor-driven failures, particularly around installation tolerances and subsea cabling, can aggregate rapidly into high impact, long tail losses.

“Pressure to deliver renewable capacity quickly is compressing construction timelines,” cautions Guido Benz, Global Industry Specialty Leader, Renewables. “When combined with skills shortages and new contractor entrants, the margin for error narrows significantly.”

Risk transfer alone is no longer sufficient. Constructability-led design, proactive risk engineering and early loss prevention are now central to controlling outcomes.

85%

of renewable construction claims relates to wind.

Source: Aon Claims Copilot

Learn More
Renewable Technology Common Causes % of Total Claims
Solar • Panel breakage during handling
• Theft, vandalism and unsecured storage
• Fire and electrical integration issues 		7%
Hydro • Civil works complexity
• Water ingress during construction
• Long-tail defects 		10%
Wind • Transportation and installation of blades and towers
• Lifting operations and wind thresholds
• Staging and storage losses
• Serial losses from repeated weather events 		83%

Source: Aon Claims Copilot

Applying Aggregation to Improve Claim Outcomes

Case Study

Applying Aggregation to Improve Claim Outcomes

During the construction of an offshore wind farm, multiple sets of construction materials were damaged across three separate voyages. Reinsurers and their appointed loss adjusters initially treated each damage incident as a separate occurrence, applying eight deductibles to the claim.

Aon’s detailed review of the policy wording and aggregation provisions supported a single‑occurrence interpretation. Following engagement with reinsurers, agreement was reached to apply one deductible to the claim rather than eight.

This interpretation materially improved the recovery position, resulting in a financial uplift of more than $800,000 and reducing the project’s net-loss exposure.

Why “Other/Unknown” is a Risk Signal

Patterns in renewable construction claims data reveal more than how damage occurs. They also expose how effectively risk is being governed once incidents happen.

A persistent share of losses categorized as “accidental” or “other/unknown” is not just a classification issue. It reflects weaknesses in incident documentation, investigation discipline and attribution at site level.

Incomplete root cause analysis, insufficient documentation at the point of loss and unclear responsibility across contractors directly affect recoverability, dispute duration and pricing confidence over time.

“A high proportion of ‘unknown’ causes isn’t just a data quality issue. It’s a signal about documentation discipline, accountability and how construction risks are being governed on site,” Barnes highlights.

Documentation, therefore, becomes a strategic lever — not an administrative afterthought.

Improving documentation and cause attribution strengthens recoverability, shortens disputes and increases pricing confidence over time. More strategically, it enables insurers and project stakeholders to design more effective renewable construction claims protocols and construction‑phase risk management frameworks that are grounded in clearer accountability and defensible loss data.

Accidental Damage (12%) Other/Unknown (26%)
• Vehicle impact from debris or flying objects
• Weather-driven accidental impact
• Operational mishaps during work activities
• Third-party property damage
• Utility or infrastructure contact
• Construction or installation error
• Theft or vandalism resulting in damage 		• Weather/wind
• Roadway debris
• Disputed third-party allegation
• Unattributed jobsite injury
• Theft/vandalism
• Indeterminate failure
• Suspected subcontractor involvement

Source: Aon Claims Copilot (since 2015)

5 Practical Levers for Reducing Renewable Construction Claims

What Construction-Phase Claims Data Means for Developers, Lenders and Insurers

The signals emerging from construction-phase claims data do more than explain why losses arise. They increasingly shape how risk is evaluated, allocated and priced across renewable projects.

Insurance capacity remains available, but underwriting has become more selective. Differentiation is now driven by demonstrated risk maturity rather than asset class alone.

Well-governed projects benefit from clearer terms, more stable capacity and greater confidence. Higher risk profiles face tighter structures and greater scrutiny.

  • Developers improve predictability by aligning design, construction, risk engineering and renewable energy project insurance decisions earlier, when exposure can be shaped rather than absorbed.
  • Lenders reduce completion risk and downside volatility by prioritizing stronger construction phase governance, transparency and DSU discipline alongside technical diligence.
  • Insurers gain pricing confidence and capacity sustainability for wind construction insurance and broader renewable energy project insurance through clearer loss attribution, shorter claim durations and improved visibility into execution risk.

“Reducing construction phase losses isn’t about avoiding risk. It’s about understanding where risk truly sits and allocating it intelligently across design, contracts and insurance,” Benz notes.

Building the Energy Transition with Confidence

Construction-phase risk is manageable when addressed early, deliberately and in an integrated way.

Projects that perform best treat construction as a critical risk period, not a temporary bridge to operations. They align claims insight, technical design, governance and insurance strategy well before exposure peaks, rather than relying on remediation once losses occur.

As renewable projects continue to scale, construction phase risk management is becoming inseparable from delivery certainty, financing confidence and long term insurability. Confidence is built through integration and discipline — not reaction.

“The energy transition will succeed if projects are delivered safely, predictably and at scale,” says Barnes. “Construction phase risk is manageable, but only when it is treated with the same discipline as operational risk.”

To understand how these insights apply to your projects, contact our team or explore Aon’s claims and risk advisory capabilities.

Aon’s Thought Leaders
  • Mona Barnes
    Global Head of Claims
  • Patrick Behan
    National Renewables Energy Leader, Australia
  • Guido Benz
    Global Industry Specialty Leader, Renewables
  • Richard Hodkinson
    Global Head of Claims Advocacy, Natural Resources
  • Jeremey Palmer
    Global Claims Leader, Natural Resources
  • Clarence Ting
    Global Claims Leader, Construction & Infrastructure

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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