Builder’s Risk insurance
Insurance during vessel construction and conversion
Protect vessels and offshore units during construction
Builder’s risk insurance is designed to protect vessels and offshore units during construction, conversion or major modification. The cover applies throughout the build or conversion phase and may be extended up to delivery, addressing risks that fall outside standard hull and machinery insurance.
The Swedish Club provides builder’s risk insurance for projects involving both newbuildings and substantial conversions, where exposure to physical damage and liability is heightened.
Who can be covered
Shipyards
Vessel owners
Owners of mobile offshore units
Cover includes
Accidental loss of or damage to the vessel or unit during construction or conversion
Third‑party liabilities arising in connection with the works
Incidents occurring prior to and following launch
Total loss, including agreed rebuilding costs
Conversion risk
Where major repairs or conversions materially alter a vessel, standard hull and machinery insurance may not respond. Builder’s Risk Insurance provides targeted protection for both the yard and the vessel owner during these periods, addressing exposures specific to construction and modification works.
Optional extensions
Extra rebuilding costs not included in the core cover
Interest accrued on instalments in the event of non‑delivery
Delay penalties and lost interests resulting from covered damage
War Risks insurance from launch or waterborne phase onwards
Cover terms and limits are structured to reflect the nature of the project, contractual arrangements and risk exposure during the construction or conversion period.
For further information on builder’s risk insurance, members are invited to contact the Club’s Oslo office.
