Follow the vessel through its build stages
Explain the vessel type, contract value, build schedule and ownership arrangements for work in progress. Identify where hull sections, machinery and customer-supplied components are stored or fabricated. A build may involve multiple yards and transportation between them. Launching, fitting out, trials and delivery deserve explicit attention because the exposure changes when a construction project becomes a floating vessel and begins operating.
Examine the builder's property and liability interests
Discuss the form intended to insure the vessel under construction, valuation progression, materials, transit and the periods before and after launch. Review liability for customer property and obligations assumed under the construction contract. Design responsibility, performance commitments and defective workmanship require separate examination; physical damage coverage is not automatically a guarantee of design or contractual performance. Coordinate workforce and vessel operation arrangements for employees involved in testing and delivery.
Make milestones and responsibilities visible
Provide the construction agreement, payment schedule, specification, maximum values by location and subcontracted fabrication details. Explain who owns components, who bears risk of loss at each milestone and when the buyer accepts the vessel. Identify testing protocols, change-order authority and any customer-appointed inspectors. Weather protection, fire prevention and accumulation of partly completed vessels may also matter. Review changes in build value, delivery method or trials promptly rather than waiting for the next annual renewal.
Questions worth asking
When should launch and sea trials be discussed?
Before coverage is arranged. They are foreseeable phases of the build and may involve different conditions or responsibilities from fabrication ashore.
Are customer-furnished engines automatically insured?
No assumption should be made. Confirm the insured property, values, ownership interests and responsibility for loss while the engines are stored, installed or tested.