The availability and pricing of this insurance solution depends significantly on the yard. Having considered the yard itself, the insurer will wish to review the Shipbuilding Contract and specifically its warranty conditions. On approval, the insurance solution offered will utilise the exact warranty wording contained in the Shipbuilding contract but extend this in accordance with your wishes for a combined period (inclusive of the period under which the vessel is already under guarantee by the yard) of up to 5 years. The insurance does not cover claims that occurred during the period during which the shipyard warranty was in effect. The insurer expects to have new building team access and to be briefed of progress and any issues as the construction of the vessel proceeds. Recall insurance can in certain cases be arranged as an extension of any existing Loss of Hire programme, and subject to the deductibles of this programme.
Scope:
Extension of the Warranty protection already in place in the Shipbuilding contract for a new building under construction for a combined period of up to 5 years. Recall costs (loss of time) can in some circumstances also be covered.
Applies to:
Shipowners with capital intensive and complex ships, or builders thereof.
How it works:
The availability and pricing of this insurance solution depends significantly on the yard. Having considered the yard itself, the insurer will wish to review the Shipbuilding Contract and specifically its warranty conditions. On approval, the insurance solution offered will utilise the exact warranty wording contained in the Shipbuilding contract but extend this in accordance with your wishes for a combined period (inclusive of the period under which the vessel is already under guarantee by the yard) of up to 5 years. The insurance does not cover claims that occurred during the period during which the shipyard warranty was in effect. The insurer expects to have new building team access and to be briefed of progress and any issues as the construction of the vessel proceeds. Recall insurance can in certain cases be arranged as an extension of any existing Loss of Hire programme, and subject to the deductibles of this programme.
Markets:
Norway.
Price Range:
1.75 – 3.00 % p.a. of insured amount depending on choice of period and deductible. Recall on request and in combination with an Extended Warranty Insurance.
Self Retention:
USD 200,000 to 500,000 depending on vessel type and size, and your risk appetite.
Time to Market:
60-90 days.
