Describe the custody and repair relationship
Ship repairers legal liability is a specialized liability subject for businesses working on customers' vessels. Identify the vessel types and maximum values, the work performed and when custody begins and ends. Explain drydock or haul-out operations, subcontracted trades, off-site work and trials. A customer's hull policy does not eliminate the repairer's potential liability. Likewise, the repairer's policy should not be assumed to provide first-party hull insurance for every vessel present in the yard.
Review the policy against the service scope
Ask how the form treats damage to the vessel being repaired, damage to other property, faulty workmanship, resulting damage and completed work. Review limits by vessel, occurrence and aggregate, along with deductibles and valuation issues. Contractual assumptions, warranties and consequential loss provisions may extend beyond the insurance. If the yard operates or charters workboats, separate P&I and hull questions arise. Employee injuries and pollution also require distinct treatment rather than being absorbed into one repair liability label.
Improve the information available for underwriting
Provide service agreements, work orders, vessel values, facility arrangements and a breakdown of repair activities. Describe fire prevention, hot-work controls, security, storm plans and subcontractor supervision. Record pre-existing damage and the condition of the vessel at acceptance and delivery. Notify the broker before accepting unusually valuable vessels, new repair methods or materially different operations. Insurance review is most effective before the yard commits to a contractual liability it has not previously assumed.
Questions worth asking
Does a customer's hull policy remove the yard's exposure?
No. The customer or its insurer may pursue the repairer depending on the facts, agreements and applicable law.
Are sea trials automatically covered?
Do not assume so. Describe who operates the vessel, where trials occur and what the actual policy permits.
Official references
Sources support the related legal or safety topic. Policy review points are general educational guidance.
Chubb: ship repairers liability coverage category (illustrative market reference) ↗