Builder’s Risks Insurance cover a vessel under construction generally referred by the yard number allocated to it. The period of insurance commences from the time of keel laying and covers various stages of construction, such as, fabrication and assembly of the hull blocks as per the design, fitting of the machineries, transit of machineries and materials to and from prefabrication workshop / stores to the yard, launching, outfitting, trials, etc., until the vessel is approved by Classification Society / Owner’s representative and finally delivered to the Owner.

A major accident occurring during the construction of a vessel disrupts the Shipbuilder’s business in many ways.  Shipbuilding being a capital intensive industry, such an incident not only disrupts the construction of the yard / ship but, it also results in reduction of cash flow, profit margins, customer dissatisfaction in the methodology of repairs and delay in delivery.

The assets of a Shipyard are insured under different types of insurance policies as follows:-

• Builder’s All Risks – covers hull, machineries, materials and spares / consumables allocated to the vessel under construction;
• Contractor’s All Risks – covers yard’s property, fixed assets, machineries and equipment used in shipbuilding;
• Public and Third Party Liability arising from operations of the Shipyard;
• Workmen’s Compensation, Personal Accident, Medical Insurance of the workers and staff, etc.;
• Fire and Marine policies as applicable to all properties of the yard.