Ship Repairers' Liability — Core Cover
A ship repair facility has care, custody and control of high-value vessels throughout the repair period. SRL insurance protects the repairer against legal liability arising from damage to, or loss of, the vessel during this period — and against third-party claims arising from repair operations.
Vessel Damage in Care
Damage to the vessel under repair while in the yard's care, custody and control — grounding, structural damage, hull penetration.
Fire and Explosion
Fire during hot-work, welding or engine testing — one of the most frequent and severe SRL claims scenarios.
Sinking and Flooding
Vessel sinking or flooding in dry dock or at the repair berth — gate failure, ballast error, flooding during hull work.
Third-Party Property Damage
Damage to adjacent vessels, dock structures or port infrastructure caused by repair operations.
Workers' Liability
Legal liability for injury to repair workers and sub-contracted labour — not automatically covered; subject to policy wording and whether the yard has separate Employers' Liability insurance in place.
Consequential Loss
Claims for loss of revenue or delay costs from the shipowner arising from extended or negligent repair.
SRL and the Shipowner's H&M Policy
When a vessel is damaged in a repair yard, both the repairer's SRL policy and the shipowner's Hull & Machinery (H&M) policy may respond. Understanding how they interact avoids double insurance and gaps in cover.
- H&M cover during yard stays is subject to policy conditions — typically the shipowner must notify underwriters and may need a survey; cover may be suspended, restricted or subject to additional premium depending on the scope of work.
- SRL responds to the repairer's legal liability — it does not insure the shipowner's own first-party damage
- The shipowner may waive subrogation against the repairer under the repair contract — this needs to be verified before SRL is placed