Shipbuilders Guarantee Risks

Shipbuilding and rig construction contracts usually incorporate guarantees given by the builder which warrant against faulty workmanship or defective materials used in the construction of a vessel. Such guarantees usually run for 12 months following delivery of a vessel or rig, although the warranty period may extend beyond 12 months for specific parts or materials used in construction.

The rectification of faulty workmanship or materials post delivery will invariably involve the shipbuilder in extra cost and expense. We are able to arrange Guarantee Insurance to provide cover for shipbuilders against contractual liabilities, costs and expenses arising under the guarantee clause in the shipbuilding contract.

The Shipbuilders Guarantee insurance will customarily include costs of opening up, dismantling, repairing, refitting and replacing of faulty parts or workmanship at the builders yard. Where required, coverage may be extended to include cost of travel to other locations (if, for example, it is not practical for the vessel to be returned to the original yard) and increased costs of repair at alternate shipyards.

We have experience in providing a bespoke coverage with limits that suit the specific needs of the Ship yard and our knowledge enables us to negotiate the broadest cover at competitive premiums. We access insurers in all of the major insurance markets. Whatever your trade we will have an understanding of your requirements.