Builders Risk Hull Insurance

What Does Builders Risk Hull Insurance Mean?

Builders risk hull insurance is a type of marine insurance policy that covers potential risks that may occur to a boat while it is under construction.

Builders risk hull insurance is sometimes referred to as hull builder’s risk coverage.

Insuranceopedia Explains Builders Risk Hull Insurance

Builders risk hull insurance is designed to mitigate the risks associated with construction mistakes by providing coverage for certain issues, allowing the building team to recover effectively. This insurance applies specifically to boats that are still under construction.

Builders risk hull insurance ensures that any damage to the vessel, whether during the construction process or trial runs, is covered financially, enabling proper repairs. This helps ensure that all risks are addressed satisfactorily, so both the builder and the boat’s future owner receive a well-constructed vessel. There are two main types of builders risk hull insurance: one that pays a fixed amount for the completed boat, and another where the coverage amount gradually increases as the construction progresses.