Question 1

What is Builder's Risk Insurance for vessels?

Accepted Answer

Builder's Risk Insurance (also known as Marine Builder's Risk or DSU – Delay in Start-Up) protects a vessel during construction at the shipyard. Coverage begins at keel laying and extends through sea trials and formal handover to the owner.

Question 2

Who needs Builder's Risk Insurance?

Accepted Answer

Both the vessel owner commissioning the new build and the shipyard bearing construction risk need this coverage. Each party has an insurable interest that Builder's Risk is designed to protect.

Question 3

Does Builder's Risk cover damage during sea trials?

Accepted Answer

Yes. Most Builder's Risk policies include the sea trial period as part of the coverage period, since damage during trials is considered part of the construction process.

Question 4

Can major repair or drydocking work also be insured?

Accepted Answer

Yes. In addition to new builds, Builder's Risk policies can cover major renovation, vessel conversion, or heavy refit work at a shipyard requiring extended drydocking.

Question 5

What is Increased Value (IV) in Builder's Risk?

Accepted Answer

Increased Value is supplementary coverage that compensates for the difference between the vessel's completed value and the primary sum insured — particularly relevant when the vessel's value grows significantly during construction.

Builder's Risk Insurance

Protection at Every Stage of Construction

Keel Laying

Construction Phase

Launching

Sea Trial & Handover

Risks Covered During Vessel Construction

Builder's Risk Insurance – Common Questions

Secure Your Shipbuilding Project