This form of insurance is applied to exposures where new boats are being built and the owner needs his own coverage. Substantial rebuilds of older vessels also fit into this category. Typically the work is being done indoors and rate depends on:

• Fire protection availability
• Experience of the builder
• Value at the start and finish
• Whether a stated limit of P&I (liability) is desired
• Whether there are ‘crew’ employed by the owner in the process, i.e. a hired captain who may oversee or participate in the construction.

P&I on a Builder’s Risk policy is ordinarily limited to the value of the vessel at the stage of completion attained when the casualty occurs.