Builders Risk Hull Insurance

Insurance for nautical types, this is a policy that protects against damage to a ship’s hull (and beyond) incurred during the construction process, after launch, or both.

Bobby was an aeronautics enthusiast, while his son, Brett, was more into boats. They decided to enter a contest in which they would build, then sell, any vessel of their choice. Whichever Hull netted the highest cash flow would be declared the winner.

Bobby chose a luxurious approach, making a gold-plated fighter jet...while Bobby built a paddlewheel steamboat. When it came time to show their vessels in action, Bobby’s Golden Jet malfunctioned and crashed into Brett’s boat, sinking both.

Luckily, Brett had a builders’ risk hull insurance policy and was able to recoup all of his costs, plus lost revenue, making him the winner...since there’s no such thing as “golden jet insurance.”