chapter 3

Question 1

first party insurance or short-tail insurance is…

Answer 1

key common element that is covered by any type of marine hull insurance is damage to the insured ship which makes this a physical loss or damage type of insurance

Question 2

‘Particular Average’.

Answer 2

special term used for physical damage to the insured property

Question 3

maritime law

Answer 3

should the insured vessel collide with another vessel it provides that each side has to pay damages to the other ship that relate to its share of the blame.

Each side can then make a claim with their hull insurers for that amount, in addition to any damage suffered by their own vessel

Question 4

Builder’s risk insurance

Answer 4

provides a combined physical damage and liability cover where the insureds can be just the purchaser/owner or a combination of the purchaser/owner and the build yard.

The key aspects of the insurance are the length of time of the process but also the increasing values as the building progresses through to completion and handover to the owner.