Shipbuilders Risk Coverage
All-risk protection for a vessel under construction, from the builder's yard through sea trials.
This is an estimate, not a bound policy — a licensed VAB producer confirms final terms before coverage starts. Sgt. Savings can answer questions but can't quote, bind, or guarantee coverage.
A vessel under construction represents enormous invested capital sitting exposed for months or years before it's ever delivered. This coverage protects the vessel and its allocated machinery and materials continuously from the builder's yard through launch, sea trials, and delivery — an all-risk first-party policy built specifically around the shipbuilding process, not a generic property or marine policy stretched to fit.
Who This Is Really For
The ideal buyer.
The ideal buyer is a shipyard or vessel builder mid-construction on a project representing significant invested capital — sometimes a custom or specialty vessel where standard marine hull coverage, built for a completed and operating ship, doesn't fit the construction-phase exposure at all. They're often deep enough into the build to be thinking about the transition points — launch, sea trials — where risk genuinely shifts, and they want one policy that follows the vessel through those phases rather than needing to arrange new coverage at each transition. Some are building under contract for an owner who is asking pointed questions about how the construction period itself is insured. This fits them because it's built specifically around the shipbuilding process — yard construction through launch, sea trials, and delivery — rather than a generic property or marine policy adapted to fit. The trigger that sends them looking right now is often the start of a new build, an owner's insurance requirement in the construction contract, or a project moving toward its sea trials phase.
- Shipyards and vessel builders with an active construction project representing significant capital investment
- Owners contracting a vessel build who want the construction period itself insured
- Builders whose projects move through distinct phases — yard construction, launch, sea trials — each with different risk profiles
- Companies building specialty or custom vessels where standard marine hull coverage doesn't fit the construction-phase exposure
- Shipyards that need coverage extending through sea trials, not just while the vessel is still tied up in the yard
What It Covers
Coverage, broken down.
Builder's yard construction coverage
Covers the vessel under construction and its allocated machinery and materials while at the builder's yard, before launch.
Launch and sea trials coverage
Extends coverage through launch and sea trials, as long as sea trials stay within the defined trial limits — coverage doesn't follow the vessel indefinitely once it's operating beyond those limits.
Delivery and acceptance coverage
Carries coverage through to delivery and acceptance of the vessel, closing out the construction-period exposure at the natural handoff point.
Illustrative Scenario — How This Coverage Responds
Illustrative scenario — damage during sea trials within the trial limits
Imagine a vessel under construction sustains damage to its hull or machinery during sea trials, while still operating within the defined trial limits before final delivery and acceptance. Because this coverage follows the vessel continuously from the builder's yard through launch and sea trials within those limits, the resulting physical damage is within the scope of what the policy is built to address — as distinct from any defect in the underlying part or workmanship itself, which the policy treats differently. This is a walkthrough to illustrate how the coverage responds, not a description of an actual claim or a promised payout.
Illustrative example for education only — not a claim outcome or a promise of payment. Every claim depends on the actual policy issued and its terms.
More Than One Way In
More scenarios.
Real coverage doesn't fit one story. Here's who else this shows up for.
The shipyard starting a new custom build
A shipyard begins construction on a custom vessel and needs coverage in place from the moment materials and allocated machinery arrive at the yard, rather than waiting until the vessel is closer to completion to think about insurance. This scenario is illustrative only, not a description of an actual claim or a promised payout.
The builder approaching sea trials
A builder's vessel nears completion and the project moves toward launch and sea trials, a phase with a different risk profile than yard construction. Because the coverage is built to follow the vessel continuously through that transition within the policy's defined trial limits, the builder doesn't need to arrange separate coverage for that specific phase. This scenario is illustrative only, not a description of an actual claim or a promised payout.
The owner requiring construction-period coverage in the contract
An owner contracting a vessel build requires proof that the construction period itself is insured as a condition of the build contract, and the shipyard secures this coverage to satisfy that requirement before work begins. This scenario is illustrative only, not a description of an actual claim or a promised payout.
Know The Gaps
What this doesn't cover.
Every policy has limits. Knowing them before you buy is how you avoid a denied claim later.
The defective part, faulty design, or workmanship itself isn't covered — only the resulting damage
If a design flaw or workmanship error causes damage to other parts of the vessel, that resulting damage is covered — but replacing or fixing the original defective part or design itself isn't. Understand this distinction when budgeting for quality issues during construction.
Delay and loss-of-market losses aren't covered
A construction delay's financial impact on market timing isn't part of this coverage — this protects the physical vessel and materials, not schedule-driven financial loss.
Contractual penalties and performance guarantees aren't covered
Contract-based penalty clauses between the builder and the buyer are a separate commercial risk from physical loss or damage — this policy doesn't step in to cover those obligations.
Navigation beyond the defined sea trial limits isn't covered
Know your policy's trial limits before scheduling sea trials — operating beyond them takes the vessel outside the coverage territory for this policy.
Strikes and riots are excluded
That's a distinct exposure covered under a separate product — shipyards concerned about labor unrest or civil disturbance risk should ask about standalone coverage for that.
Third-party liability isn't covered — this is first-party only
This protects the vessel itself, not liability claims from third parties connected to the construction project — shipyards need separate liability coverage for that exposure.
Behind The Quote
What goes into the decision.
What actually moves your price and your approval — no black box.
Construction phase and project timeline
Because coverage runs continuously from the yard through delivery, underwriting looks at where the vessel is in its build timeline and how the project moves through yard construction, launch, and sea trials to structure the policy correctly.
Defined sea trial limits
Coverage during sea trials only applies within the policy's defined trial limits, so a builder's planned sea trial route and scope directly shape both eligibility for that phase and how the policy is written.
Vessel type and construction complexity
Custom or specialty vessel builds carry a different risk profile than standard designs, and the vessel's specific construction complexity factors into underwriting since this product is built to fit shipbuilding specifically, not generic property risk.
Geographic scope of the build and trials
Coverage territory is generally limited to the builder's yard or port of construction within the U.S. and its territories, plus defined trial limits, so where the build and trials actually happen shapes eligibility.
Let's get you covered.
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Availability
Coverage territory is limited to the builder's yard or port of construction in the U.S. and its territories, plus the defined sea trial limits; your agent will confirm the specific territory for your build.
Questions, answered straight
No jargon on shipbuilders risk coverage — just what you're actually asking.
It continues through launch and sea trials, as long as the sea trials stay within the policy's defined trial limits. Coverage runs continuously from the builder's yard through delivery and acceptance.
The resulting damage to other parts of the vessel is covered — it's specifically the defective part, faulty design, or workmanship itself that's excluded, not the downstream physical damage it causes.
Coverage territory is generally limited to the builder's yard or port of construction within the U.S., its territories, and Puerto Rico, plus the defined sea trial limits — confirm the exact territory with your agent for your specific build location.
No — this is first-party coverage for the vessel itself. Third-party liability needs to be covered under a separate liability policy.
Talk to your agent about how your specific builds should be scheduled — coverage can typically be structured around your actual construction program, whether that's one policy covering multiple vessels or separate policies per vessel.
Beyond This Coverage
What people in your situation also need.
Business Loans
Shipyards managing capital-intensive builds often need financing alongside the coverage protecting the vessel under construction.
ExploreEquipment Financing
Shipbuilders investing in yard equipment for a build can finance it through the same relationship that insures the vessel.
ExploreCommercial Real Estate Financing
Expanding yard capacity for a new build is often financed alongside the construction-period coverage that protects it.
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Learn moreReady to talk it through?
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Insurance products described on this page are marketed by The Veteran Alliance, a licensed insurance producer, and underwritten by one or more separately licensed insurance companies, which may include Corgi Insurance Company and its affiliates. The insurer that actually underwrites your policy, its licensing status in your state, and any state-required notices will be identified in your quote and policy documents. Coverage, limits, eligibility, and pricing are determined by the underwriting insurer, may vary by state, and may change. Nothing on this page is a quote, an offer of insurance, a binder, or a guarantee of coverage — coverage takes effect only when a policy is issued.