According to RS Platou’s October 2014 Monthly Newsletter, there have been 748 newbuildings ordered for the year to date, with 2463 vessels due for delivery from now to 2016 and beyond.  Whilst we do not intend to comment on the reasons for that here, what we do know is that for many stakeholders, insurance is a long way down the list of priorities when placing a newbuilding order – something we believe should change.

Ultimately, insurance always has to be dealt with at some stage – obtaining advice on the various mandatory (and optional) insurances early on will reduce the cost as well as provide other benefits.

We can provide legal advice (without cost) on the MOA, negotiate with the mortgagee bank to ensure their requirements for insurance are met (this frequently is an issue at the latest stage of completion) as well as combine pre- and post-delivery covers to reduce operational insurance expenses.  We also provide a Contract Review Service to advise on the exposures under the NewBuilding Contract or MOA, the Refund Guarantee, the mortgage documents and the Notices of Assignment.

In addition, we will provide Premium Costing Indications for post-delivery insurances such as P&I, H&M, IV, War, LOH etc to assist in OpEx budgeting.

Please contact us for a copy of our Insurance Overview for Newbuildings on [email protected] or through your usual Latitude Brokers contact.

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