Ship Builders

Every shipyard will have a unique blend of exposures created from the type of vessels under construction and the facilities of the yard. The most commonly used conditions are the Institute Builders Risks Clauses which give cover to the builder for physical damage to a vessel while under construction and it is usual to supplement the standard cover with extensions to address the specific exposures appropriate to the operation.

In addition to providing cover for physical loss or damage to new vessels under construction, insurance cover will normally also include cover for third party liabilities, damage arising from faulty design, sea trials, war risks (whilst waterborne) and strikes coverage. Where appropriate, cover can be extended to include cargo risks for parts and machinery during storage and transportation to the yard, towage of a hull from a sub-contractors yard and expenses incurred by the yard following postponement of a launch.

Dependant on the location and the normal contract terms it is possible that the yard will need to cover the following:

• physical loss or damage to the vessel under construction
• liability to third parties
• physical damage to ship yard buildings and assets
• loss or damage to parts, equipment in store
• loss or damage to parts in transit
• penalties arising from delayed or non-delivery
• loss of revenue
• employers liability, public liability, contractual liability and general liability.

Builders Risks policies need to be designed to respond to all phases of construction including post-launch risks and coverage for sea trials. We have experience in creating bespoke policies to address the individual client needs. Our knowledge enables us to negotiate the broadest cover at competitive premiums. We access insurers in all of the major insurance markets.