Builders Risk Hull Insurance
Definition - What does Builders Risk Hull Insurance mean?
Builders risk hull insurance is a type of marine insurance policy that covers any possible risks that may happen to a boat while it is being built.
Builders risk hull insurance is sometimes referred to as hull builder’s risk coverage.
Insuranceopedia explains Builders Risk Hull Insurance
Builders risk hull insurance was designed to lessen the risk of construction mistakes by allowing certain issues to be funded, leading to the good recovery of the building team. It applies for boats that are currently in the process of building.
Builders risk hull insurance makes sure that any damage that is brought to the ship whether during actual construction or during trial runs would be financed so that they can be repaired well. It makes sure that all risks can be repaired in a satisfactory manner so that the builder and the boat’s future owner will both receive a well-constructed boat. There are two main types of builders risk hull insurance: one that pays for the boat as a completed product or another where the payment is going to keep increasing as the work goes on.