Boat builders insurance is a special type of cover for boats and yacht artisans. It directly or indirectly covers all the people involved in the process of manufacturing these commercial vessels, restoring the boats and refitting them. Boat builders risk coverage provides compensation for any losses that happen as a result of physical damage or third party liability. Here is a breakdown of the main coverage in boat builders insurance.
Physical Damage Insurance
This insurance provides compensation for losses that result from the physical damage of the ship or yacht. When the insured claims the damage, the insurance firm assesses the degree of damage on the boat and then covers the repair or replacement expenses. The disbursement amount depends on the market value of the vessels and the premiums that the insured pays.
Merrimac Marine Insurance notes that third party liability insurance applies to the legal liabilities that affect third parties. For instance, boat builders risk coverage can provide compensation for losses arising from the damage or physical loss of a third party’s property. The indemnity limit greatly varies among insurance firms; hence, you should carry out your due diligence before selecting an insurance firm to work with.
Boat builders risk coverage is an ideal policy for people who manufacture boats or yachts. The cover compensates for losses arising from physical damage to the vessel or third party liability.