|
Insuring vessels whilst under construction brings with it a number of special features and is not always well understood by the public, or some insurance brokers!
Oceanic Insurance Brokers has been involved in arranging suitable builders' risk coverage for close to 21 years. Here are some of the basic considerations.
 The whole process can include:
- pre-keel storage and fabrication;
- laying of keel and building;
- launching;
- fitting out which usually includes fitting of main machinery;
- trials; and
- hand over to buyers.
When Oceanic Insurance Brokers is asked to arrange cover for Builders Risks, we look at:
- The Location.
This can vary from a small area of ground where a private pleasure craft may be built and fitted out, to a highly sophisticated yard capable of building very large tankers or specialist vessels. Most yards will have fabrication and machine shops, slipways, fitting out berths, dry docks, etc. Some yards build a large proportion of the vessel under cover. We will take time to understand exactly what the premises are constructed of and the procedures for handling and storage of flammable materials.
- Exposure to natural forces such as earthquake, windstorm, etc.
- Exposure to fire hazards.
- Number of vessels being built and/or fitted out and/or repaired at any one time.
- The Builders' experience both on the type of craft and claims record.
- Complete construction from pre-keel assembly to handing over to purchaser.
It is important to remember the role of the sub-contractors as these often carry out a good part of the work often away from the main yard, e.g., machinery, electrical equipment, navigation and electronic equipment, cranes, etc.
- Partial construction which may entail the hull being built in one location then passed to another yard for completion or fitting out as opposed to construction of the hull. This frequently occurs with pleasure craft when yards purchase pre-moulded hulls;
- Building in drydock.
- Launching - whether conventional slipway; broadside slipway; lifting into water (typically pleasure craft), or from a drydock.
TYPE OF MATERIAL
Most vessels are built, wholly or partially, with the following materials:
Steel, wood, aluminium, glass fibre, moulding resins, stainless steel or less frequently concrete.
We look closely at:
- High values, particularly for specialist vessels
- Long build periods
- Trials
- Transit risks particularly for pleasure craft
REPAIR/RECONSTRUCTION RISKS
Some yards will both build and repair vessels, whilst others are specialist repairers operating without a yard of their own.
It is not unusual for a repairer to send teams of men to repair damage whilst the vessel is still afloat or in use. Apart from the special features of building risks other factors should be borne in mind:
- Ship repairers will usually effect insurance to cover their legal liability.
- The vessel to be repaired or reconstructed is usually insured by the owners as a separate risk.
- Type of vessels.
- Drydock, ashore or afloat.
- Type of work to be undertaken.
- Susceptibility to explosion or fire damage, particularly with tankers, passenger vessels repairs/reconstruction requiring hot work.
- Experience of yard and record.
With Builders Risks it is important
to understand the full scope of a client's business.
To assist with this, we will help you to complete a proposal
form in an easy read format. We can provide coverage
for a one man business to large multi-national companies.
Make sure your first call is to an Oceanic Hull Broker
who will be pleased to assist you.
Click here to return to the home page
|
