DEFINITION of 'Builders Risk Hull Insurance'
A protection policy pertaining to when a ship is in the builders' hands. Coverage can be all-inclusive, excluding defects and destruction through war. It protects against both pre- and post-launch disasters. Builders can choose a policy which covers the total amount of the finished product (Completed Form), or a policy which is adjusted upwards as work is completed (Reporting Form).
BREAKING DOWN 'Builders Risk Hull Insurance'
The hull of a boat is the basic body of the vessel, including any vital appendages. The scope of this insurance coverage extends beyond simply basic damage to the hull, covering some business risk as well. Business Risk Hull Insurance can also be purchased when a boat is in for repairs or during transport of the vessel to and from the owner.