ABSTRACT
Builders' risks cover forms a significant part of the contractual matrix in any construction project. It is often a requirement of any shipbuilding contract, standard or otherwise, that such cover is put in place by the time the construction commences. However, ship construction is a progressive venture and it is very unlikely that the cost of recovery and/or repair would exceed the insured value unless the loss occurs very late in the project. The existence of a builder's risks cover provides peace of mind to the buyer who will operate in the knowledge that in the event of an unexpected casualty, the builder will secure adequate funds to repair the damage and keep the building contract on track. In 2007, following an extensive review carried out by the Joint Hull Committee, the International Underwriting Association of London published the London Marine Construction All Risks Wording which was intended to revise the Institute Clauses for Builder's Risks (ICBR) 1988.
