Advances in technology and the ongoing market for yachts and boats can provide many benefits and challenges for companies that build marine vessels. Companies that boats and yachts need to make sure they have the tools and coverage needed to succeed in a changing market. One of the most important tools is a comprehensive builder risk insurance policy.
Builders Risk Policy Coverage
While the details of any insurance policy are usually customized to the client, there are some standard features of a builders risk insurance policy for marine manufacturers. The purpose of the policy is to provide coverage for the builder from the beginning through the end of construction. Most policies conclude when the yacht or boat is delivered to the client.
Insurance policies generally cover several different things:
Damage to or loss of the vessel
Loss of property and materials
Collision liability during trials at sea and delivery
Additional Insurance Considerations
In many cases, insurance providers can work with marine builders to develop customized policies based on specific needs. For example, a builder may choose to purchase a policy to cover the construction of each vessel. Another possibility is a continuing insurance policy that covers the builder’s property in ongoing boat and yacht construction projects.
Companies that build yachts and boats often have unique insurance needs. A builders risk policy can help offset costs of property loss or damage while a vessel is undergoing construction.