| As the name intimates, the Shiprepairer's Legal | | | | policy is designed to protect the Yard if it is negligent. |
| Liability (SRLL) policy covers only what the Shipyard | | | | Any other situation should fall under the Owner's |
| is legally liable for. This usually implies negligence. | | | | H&M or P&I policy where the Shipyard (and its |
| Simply put, this policy looks to protect the Yard if | | | | affiliates, subcontractors, etc.) should be named as an |
| the Yard would be found to be legally liable for | | | | assured and the underwriters should specifically waive |
| damage while a vessel is under the care, custody and | | | | subrogation against the Shipyard. |
| control of the Yard. | | | | Generally, in order for there to be a claim under a |
| Since this policy will respond ONLY when the Yard is | | | | SRLL Policy, the loss will have to be traced back to |
| negligent, typically, the Yard would rely on this policy | | | | the Yard's negligence when the vessel was in the |
| when the Owner is maintaining his Hull & Machinery | | | | care, custody and control of the Yard. |
| (H&M) and his Protection & Indemnity (P&I) covers | | | | In the event of a SRLL claim the following procedure |
| and naming and waiving the Yard / Yard's | | | | should be followed: |
| Contractors / Affiliates of the Yard / Yard's Parent | | | | • Report loss promptly to your insurance broker. |
| Company, etc. on to its H&M and P&I policies. | | | | • Act prudently, e.g., take pictures, mitigate and |
| For the SRLL policy to respond, the Shipyard is | | | | assess the damage, begin collecting documents. |
| responsible for showing Underwriters how the yard | | | | • Review Claims Clause of the Policy. |
| was negligent. | | | | • If Underwriters can prove that their rights of |
| The type of insurance that the Yard has in place | | | | recovery were prejudiced, then they can either deny |
| does not determine liability. The Yard's liability is | | | | coverage or reduce the claim amount by the amount |
| grounded in the terms and conditions of the ship | | | | of recovery that they would have been able to |
| repair contract. | | | | receive, had their rights not been prejudiced. |
| However, SRLL Underwriters will not respond to a | | | | • If potential that repair or replacement amounts |
| contractual provision that does not fall under their | | | | will breach deductible, a surveyor on behalf of |
| SRLL policy. | | | | Underwriters should be appointed. The cost for the |
| For any project, the most important thing to consider | | | | surveyor is borne by the Underwriter. |
| is that there are no gaps in coverage. The SRLL | | | | |