In what is being termed a landmark ruling, the Thai Court confirmed the denial of coverage in a case involving the catastrophic failure of a wind turbine, represented by Clyde & Co’s team in Thailand.
The court ruled that the manufacturer and contractor’s adherence to “industry practice” did not outweigh evidence of gross negligence presented by insurers. This decision mandates renewables manufacturers and contractors to rigorously ensure that subcontractors fulfill their responsibilities, as failure to detect subcontractors’ lapses can lead to a denial of insurance coverage.