Shipyards are where vessels are built and receive pairs, which means these docks see their fair share of big, expensive construction projects. And as with any expensive construction project, there are expensive risks involved, such as the possibility of oil spills while a vessel is being built or receiving repairs. To mitigate these risks, a shipyard pollution policy can play a crucial role in ensuring environmental safety and compliance.
For example, an oil spill could occur at a shipyard while a ship refuels or during an oil transfer between vessels. Or, two vessels could collide and spew oil into the water. Even acts of God, like extreme weather conditions and natural disasters, can cause an oil spill at a shipyard.
Regardless of the cause, oil spills can be extremely costly and detrimental to the shipyard and the surrounding environment. After all, oil spills can destroy marine life, damage property at a shipyard, shut down waterways, and lead to major financial losses, highlighting the importance of a shipyard pollution policy.
So, what is a shipyard pollution policy? A shipyard pollution policy is insurance designed for shipyard owners and professionals who work in shipyards, such as those who build and refurbish ships, work on diesel engine systems, or do heavy ship or hull repairs. That said, this kind of coverage can also extend to those in dredging and other shipyard-associated businesses that could accidentally cause oil spills.
A shipyard insurance policy helps protect against exposure to loss. It covers the damages, settlements, lawyer fees, and defense costs associated with an oil spill. The policy will also cover clean-up costs and any incurred civil penalties, legal fees, and criminal fines.
Since a lot can happen at a shipyard while a ship is under construction, a good policy will cover oil spill risks for the entire shipbuilding process. Policies will protect the shipyard itself, while some policies may even cover oil spill exposures during sea trials and delivery trips.
Learn About Falvey’s Shipyard Coverage
Falvey Insurance Group provides comprehensive coverage for the marine industry, with policies that provide shipyard coverage, including a global vessel pollution insurance policy. Contact us today to learn more about our insurance solutions.
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