Website design By BotEap.comAs its name suggests, the Shiprepairer’s Liability (SRLL) policy covers only what the Shipyard is legally responsible for. This usually involves negligence. Simply put, this policy seeks to protect the Yard if the Yard is found to be legally liable for damages while a vessel is in the care, custody and control of the Yard.

Website design By BotEap.comSince this policy will respond ONLY when the Yard is negligent, generally, the Yard would rely on this policy when the Owner maintains its Hull and Machinery (H&M) and its Protection and Indemnity Coverages (P&I) and appoints and resigns from the Yard / Yard’s Contractors / yard affiliates / yard parent company, etc. in its H&M and P&I policies.

Website design By BotEap.comFor the SRLL policy to respond, the Shipyard is responsible for showing the Underwriters how the shipyard was negligent.

Website design By BotEap.comThe type of insurance the Yard has does not determine liability. The shipyard’s liability is based on the terms and conditions of the ship’s repair contract.

Website design By BotEap.comHowever, SRLL insurers will not respond to a contractual provision that is not included in their SRLL policy.

Website design By BotEap.comFor any project, the most important thing to consider is that there are no gaps in coverage. SRLL’s policy is designed to protect the Yard if you are negligent. Any other situation must be included in the owner’s H&M or P&I policy in which the shipyard (and its affiliates, subcontractors, etc.) must be named as insured and the insurers must specifically waive subrogation against the shipyard.

Website design By BotEap.comGenerally, for there to be a claim under an SRLL Policy, the loss must be traced to the negligence of the Yard when the vessel was in the care, custody and control of the Yard.

Website design By BotEap.comIn the case of a claim for SRLL, the following procedure should be followed:

Website design By BotEap.como Report the loss to your insurance broker immediately.

Website design By BotEap.como Act wisely, eg take pictures, mitigate and assess the damage, start collecting documents.

Website design By BotEap.como Review the claims clause of the policy.

Website design By BotEap.como If the Insurers can prove that your recovery rights were harmed, then they can deny coverage or reduce the amount of the claim by the amount of recovery they could have received if your rights had not been harmed.

Website design By BotEap.como If there is a possibility that repair or replacement amounts will exceed the deductible, an inspector must be appointed on behalf of the Underwriters. The surveyor’s cost is borne by the insurer.