1. Builder & # 39; s All Risk Insurance:
When during the contract negotiation stage, when it is as yet unclear as to which which will be accepting which liability, which party will be responsible for procuring the insurance and absorbing the deductibles, etc., both parties look more deeply into the breadth of available BAR coverage.
We can say that Builder & # 39; s Risk Insurance for the energy class of business coverage under three different forms:
- London Institute Builder & # 39; s Risk Clauses 1.6.88 (CL 351) - or American equivalent
- WELCAR form
- Custom forms tailor - made to specific risks or Owners or shipyards.
Is the protection provided under all BAR policies the same? No! For a comparison between words please contact a trusted insurance broker of your choice.
2. War Risks and Strikes, Riots, Civil Commissions (SRCC):
a. Institute War Claus Builder & # 39; s Risks 1/6/88 (CL 349) -
Coverage incomes once the vessel is launched (or wet) and provided coverage for loss of or damage to the insured vessel / rig caused by:
- war, civil war, revolution, rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a bellegerent power
- capture seizure arrest restraint or disadvantage, arising from perils covered above, and the consequences.
- derelict mines torpedoes bombs or other derelict weapons of war.
Provides coverage for loss of or damage to the insured vessel / rig caused by:
- strikers, locked-out workmen, or persons taking part in labor distortions, riots or civil commotions
- any terrorist or any person acting maliciously or from a political motive.
We recommend that this coverage be amended to include Vandalism and Malicious Mischief.
Please also review if the terrorism coverage in the terrorism coverage provided by this client is any restricted or broadened, or any other applicable clauses such as Sabotage & Terrorism Endorsements. In any case, be sure that the coverage afforded is adequate for your client so your Client makes an informed decision.
3. Liability - insurance coverage that protected an insured against claims made by third party for insurance or injury to their property or personality in marine construction, this policy is referred to an MGL, marine general non-marine circumstances, the policy is referring to as CGL, commercial general liability policy. The construction contract should be which parties are liable in which instances for losses of Third Party Liability nature.
Insurance policies can be divided into three broad categories:
- Extraordinary liability companies are the manufacture of a product. Product liability - Protection against a Manufacturer & # 39; s liability for injuries or property damage after a manufactured product has been sold.
- Completed Operations - Protection against a Contractor 's liability for injuries or property damage suffered by Third Parties as a result of the Contractor completing an operation.
- "Trips & falls & damage" - Protection against injuries or property damage on promises or hulls within care, custody, control of a party.
- It provides excess coverage over all "underlying" liability insurance carried.
- Instead of purchasing the insider to this purchase the coverage once to sit atop various policies, then increasing the limit for many policies.
- We recommend that this coverage provide automatic replacement coverage for under policies that have been reduced or exhausted by loss.
- Cargo / Transit Insurance - to protect against All Risks of loss of or damage to the shipments of material, equipment, etc. that will form part of the construction (ie, the topsides from Russia to the UK)
- Marine Delay in Start-Up - to protect against lost profit plus extra expenses due to the delay in arrival of critical components; for instance, due to thrusters being dropped into the water during loading of vessel - causing a 3-month delay in project ( due to back-order of specific thrusters required per specifications)
- Hull & Machinery & Protection & Indemnity Insurance - to protect against All vessels of loss or damage to the vessel / rig - and liabilities generated from the vessel / rig - during transport after completion at Yard (for instance, if delivery is not ex-Yard , but rather at final drilling site)
- Hull & Machinery & Protection & Indemnity Insurance - to protect against All vessels / crane barges that may be used to assist in the construction of the vessel / rig
- Liquidated Damages Insurance - to protect against penalties for to to satisfies an agreement; for instance, for late delivery of unit due to loss of a BAR nature
- Political Risk Insurance - to protect a foreign entity against loss suffered due to political risk nature (including Discrimination, Nationalization, Expropriation, Selective Discrimination, Contract Frustration, Inconvertibility & Non-Transfer of funds, etc.)
- Professional Indemnity (PI) Insurance - to protect against legal liability arising from any professional negligent act, error or omission in rendering or failing to render professional services by an Assured. We recommend that you look into the design and engineering work and contractual requirements and track records involved in the rig, and see what what protections are already in place.
- Workmen & # 39; s Compensation / Employers & # 39; Liability as required by applicable statement
- Auto Liability as required by applicable statement
- Following delivery of a unit to an Owner, usually Maintenance & Discovery coverage is purchased.
- Warranty coverage is also possible.
The Maintenance Cover Is simply an extension of the builder & # 39; s Risk policy, which in this case survives delivery of the vessel to the owner, with coverage being no leader than that contained elsewhere in the policy, subject to all of the conditions and exclusions of that policy.
The Warranty Coverage This means that the Warranty Clause from the Warranty Clause to the backwards of the Warranty Clause to Owner.
