SHIPBUILDER'S RISK INSURANCE
SHIP BUILDERS LIABILITY
The Policy
As a ship builder you may suffer loss of or damage to the hull and ma-chinery of vessels you are constructing (including materials in your possession allocated thereto) from a wide variety of causes.
In addition you may become legally liable for loss of or damage to property belonging to others or for death or personal injury caused to third par ties during the construction.
Associated Marine Insurers provide cover against such eventualities using the internationally recognised Institute Clauses for Builders’ Risks (1/6/88) (CL.351) a copy of which is available upon request.
The policy gives you the flexibility to select either specific contracts for individual clients, or to insure all vessels constructed at specified yards during the policy period or any renewal thereof.
Risks Covered
Subject to the exclusions detailed in the policy wording the insurance is against all risks of loss of or damage to the subject-matter insured caused and discovered during the period of insurance, including latent defect. In case of failure of launch, the policy covers all subsequent ex-penses incurred completing the launch.
The policy also covers loss of or damage to the subject-matter insured caused and discovered during the period of insurance arising from faulty design of any part or parts thereof but not including the cost or expenses of repairing, modifying, replacing or renewing such part or parts nor any cost or expense of betterment or alteration in design.
+ Principal Risks Excluded
Loss damage liability or expense caused by
• earthquake
• volcanic eruption.
- The cost of renewing faulty welds.
- Liability costs or expenses arising in respect of
• workers compensation
• punitive and exemplary damages
• pollution or contamination.
Premium
This is based on the estimated completed contract value and the type of vessel being constructed, the estimated period of construction, the claims history of the yard, the deductible level selected, launching, trialling and delivery details.
A deposit premium, based on the above, is charged at the com-mencement of the contract. This is adjusted on expiry of the policy pe-riod taking into account the final construction value and the actual period of construction.
Settling Your Claim
Subject to the policy deductible our experienced claims staff will promptly indemnify you for losses, legal liability and costs insured by the policy up to the agreed limit.
Important
The information above is an outline of the cover provided. Full details of the cover with all limitations exclusions and conditions are con-tained in the policy.