Commencement of the risk

It is extremely common for insurance policies taken out by builders or manufacturers to cover two quite separate forms of risk: losses which occur during the building process; and liability incurred by the assured supplier in the event that the work proves to be defective or dangerous in a given period following supply. Hessens Yacht Builders BV v Cox Syndicate Management Ltd, The Lady Halima , an unreported decision of Nigel Teare QC sitting as a deputy High Court judge (26 July 2005, to be reported in [2006] Lloyd’s Rep IR), recognises that these two types of risk are quite separate and that the trigger of policy coverage for each may be different.