Marine Builders’ risk
The construction of a new ship is a serious project that requires a large investment. Insuring the vessel during construction or repair helps protect the client against loss of investment.
The insurance will start from the moment the keel blocks are installed on the vessel and will be valid throughout the construction period, as well as during the running tests. The insurance cover will end only when the completed vessel is handed over to the owner.
The vessel will then be insured with a standard hull and machinery (H&M) insurance policy.
Insurance risks:
- Damage and destruction (actual or constructive total loss) of the ship during construction, launching or testing.
- Pollution of the surrounding environment
- Construction defects
- Expenditure related to the prevention, reduction and quantification of losses.
The calculation of the premium depends on the technical characteristics of the vessel to be built: type, size, contract value and construction period.
The experience of the shipyard or construction company in the construction of similar projects and the history of previous claims in the ship repair or construction industry are very important.