3 Insurance Risks For Ship Repairers During Maritime Safety Inspections

Maritime safety inspections are crucial for ship repairers, often exposing safety hazards, compliance issues, and hidden risks that can disrupt operations or affect insurance claims.

The right ship repairer insurance helps protect against financial setbacks, legal challenges, and operational delays — but it’s not always clear where the biggest vulnerabilities lie. Here are three key insurance risks your ship repairer clients should be prepared for during inspections.

1. Liability Risks From Inspection Failures

Safety inspections can uncover repair deficiencies such as substandard workmanship, use of improper materials, or failure to follow regulatory guidelines. These issues can expose ship repairers to legal claims or financial liability if they result in damage, injury, or non-compliance with maritime standards.

Ship repairers legal liability is essential coverage that protects against claims arising from damage to vessels under repair. Products completed operations liability adds another layer of protection by covering incidents that occur after the repair work is finished, helping shield businesses from costly legal and financial consequences.

2. Equipment Damage During Inspections

During inspections or preparation work, there’s always a risk of accidentally damaging tools, lifts, or even the vessels themselves. These incidents can lead to unexpected repair or replacement costs that disrupt operations. Property coverage for equipment/lifts/tools and owned watercraft helps absorb these losses, keeping ship repairers protected from out-of-pocket expenses.

3. Employee Accidents on Site

Workers face injury risks during inspections or when vessels are being moved, especially in dynamic shipyard environments. Slips, falls, or equipment-related accidents can lead to serious injuries and liability concerns. Coverage such as workers’ compensation, Jones Act/MEL, and USL&H is essential to protect both employees and the business from medical costs and legal exposure.

Protecting Ship Repairers During High Scrutiny

Even fully compliant ship repairers can face legal exposure when inspections uncover issues linked to past work, subcontractor actions, or evolving regulatory standards.

A bundled ship repairers insurance strategy offers broader protection by combining key coverages that work together to reduce gaps and enhance financial security:

• General liability: Covers third-party bodily injury and property damage, helping protect against lawsuits that can damage reputation and finances
• Ship repairers legal liability: Specifically tailored to cover damage to vessels in the repairer’s care, custody, or control
• Products completed operations liability: Provides protection for claims arising after the work is completed, including defects or failures tied to repairs
• Property coverage: Protects valuable assets from loss or damage during operations, inspections, or transit
• Workers’ compensation and USL&H/Jones Act/MEL: Covers employee injuries on land or water, helping comply with maritime labor laws and avoid costly claims
• Bumbershoot liability: Offers high-limit excess coverage over multiple liability policies, giving added protection against large or unexpected claims

Minimizing Risk With Proper Ship Repairers Insurance

Preparing in advance allows ship repairers to reduce operational risks and avoid costly disruptions during inspections or repair work. A comprehensive ship repairers insurance package provides the protection needed to handle legal, financial, and safety challenges.

Merrimac Marine Insurance offers specialized coverage tailored to the unique risks ship repairers face, helping them stay protected and operational during safety inspections. Contact us to get coverage built for the realities of your clients’ work.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.