What Are The Typical Shipyard Liability Risks You Should Prepare For?
A lot can happen between design, build, sea trials and delivery. In a shipyard, losses and legal liability can happen in the blink of an eye or result from something gone unnoticed until it’s too late. A few examples include:
- A collision occurs between a vessel on a sea trial and another in the water.
- While working on a ship in the water, a barge accidentally collides with another client’s yacht.
- Your shipyard is responsible for a sewage spill requiring a massive cleanup.
What Does Business Shipyard Insurance Cover in Case of a Lawsuit?
For lawsuits covered under your policy, business shipyard insurance can provide our clients with coverages for:
- Lawyer’s fees
- Defense costs
- Out-of-court settlements
- Awards for damages
Keep in mind that even baseless lawsuits require substantial resources and time to defend against.
What Are The Most Common Insurance Policies for Shipyards?
For collisions involving a vessel and a fixed installation as well as accidents resulting in bodily injury, death.
Hull & Machinery insurance can provide coverage for the costs to physical repair damage to your vessel(s) and remove wreckage from the water if necessary while also covering you for potential legal liability.
For spills and allegations of improper disposal of contaminants. Coverage can include cleanup and litigation costs.
CGL can be written for both marine and land operations, covering you for lawsuits alleging personal injury, property damage, false advertising and libel or slander.
Provides coverage for theft, vandalism and damages caused perils such as fires and windstorms.
Business Interruption Coverage to cover your expenses in case a covered peril forces you to stop shipyard operations temporarily.
For trucks, trailers, construction caan etc., used by your shipyard.
Additional Insurance Coverages for Shipyards
Depending on the type of vessels your company specializes in and the size of your operations, the following policies can be bundled into your shipyard insurance plan as needed.
- Accounts Receivable Insurance
- Boiler & Machinery Insurance / Equipment Breakdown Insurance
- Cargo Insurance
- Crime Insurance / Fidelity Insurance
- Cyber Liability & Privacy Insurance
- Product Liability Insurance
- Product Recall Insurance
Shipyard insurance by commercial insurance specialists – ALIGNED advocate service got you covered from bow to stern
At ALIGNED, commercial insurance is all we do. When you choose ALIGNED, you get an advocate working Canada’s top insurance companies with proven track records in marine construction and liability to get you specialized insurance plans that cover your risks and fits your budget. Contact an ALIGNED advocate to get a free quote on shipyard insurance in minutes or get started right away by using our free online tool.