Marine insurance coverage in shipbuilding contracts and its relation to ship mortgages

Abstract

Even before putting to sea, during the construction process, a ship can be a source or object of maritime risks; it has been said source, since it has the immanent character of being the genesis of damage or harm to its builder or to third parties; or it can be an object, that is, a matter of damage or impairment, as a result of the action of third parties, and even of the shipyard itself. Notwithstanding the above, there are also certain risks of breach of contract, which can undermine the legal position and interests of the shipyard, for which it is necessary to guarantee the fulfilment of the obligations of the contract that represent a claim for this party. In view of the misfortunes derived from shipbuilding, the purpose of this paper is to analyze, determine and conceptualize the Marine Insurance coverages in the Institute Clauses for Builder's Risks Policies of 1/6/88, the Marine Construction All Risks 01/09/07, and the Japanese Builder's Risks Insurance Clause, understood as the main contractual instruments used in Shipbuilding contracts, and their relationship with ship mortgages.