Commentary

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Section 3: Indemnification of additional costs incurred in an unsuccessful launching and costs of wreck removal

Clause 19-18. Additional costs incurred in an unsuccessful launching

This Commentary was rewritten in the 2013 Plan.

This Clause deals with the indemnification of additional costs in connection with unsuccessful launching. This means that the costs that are covered are additional to what is covered under the other conditions of the builders’ risks insurance. An example might be damage to the building berth and/or slipway cranes in connection with a launch. The insurer covers the costs of repairing the berth and/or the cranes so that another launch can be made. If the slipway cranes are not used in connection with the launch, the damage is not covered by the builders’ risks insurance. In that case, the damage must be covered by the yard’s other insurances. The damage to the berth is covered insofar as the repairs are necessary for a new launch, but full repairs are not covered. This also applies to other parts of the yard’s property/assets which need to be repaired in order to carry out a new launch.
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Clause 19-18. Additional costs incurred in an unsuccessful launching
In the event of an unsuccessful launching, the insurer covers the additional costs incurred by the assured in carrying out the launching.
Clause 19-19. Costs of wreck removal

This Commentary was rewritten in the 2013 Plan.

This Clause deals with the insurer’s indemnification of costs incurred by the assured for the “necessary removal of wrecks”. In this connection, “wreck” means the wreck of the subject-matter insured or its components. Removal is necessary when it is impossible for the yard to continue to operate without removing the wreck. Only costs related to the removal of the wreck from sites owned or used by the yard are recoverable, and only the expenses that exceed the value of what is removed, on condition that such costs are reasonable.

If the subject-matter insured/wreck causes an obstruction to traffic in areas belonging to or used by others, such as in a port area owned by the public authorities, removal costs must be covered as wreck removal liability under Cl.19-20.
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Clause 19-19. Costs of wreck removal
The insurer covers the assured’s costs of necessary removal of wrecks from places owned by or at the disposal of the yard.

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Commentary

Section 3: Indemnification of additional costs incurred in an unsuccessful launching and costs of wreck removal

Clause 19-18. Additional costs incurred in an unsuccessful launching

Clause 19-18. Additional costs incurred in an unsuccessful launching

Clause 19-19. Costs of wreck removal

Clause 19-19. Costs of wreck removal