ABSTRACT
Throughout the course of her construction, outfitting and trials the vessel will face significant risks of physical loss and damage. As noted previously, these risks customarily fall upon the builder,1 although both parties to the contract will normally wish to be satisfied that he is adequately insured against such exposures. The buyer will in particular wish to know that, in the event of a casualty, the builder will be able either to repair the damage without financial support from the buyer or to refund the buyer’s advance instalments of the contract price if repair of the vessel should be uneconomic.2
