The Hidden Risk in Maritime Infrastructure Projects

This post was originally published by Marine Log and is reprinted here with permission.

Maritime projects now unfold alongside ongoing operations. Ports expand while handling cargo, shipyards modernize amid production, and contractors work within busy vessel traffic. This evolution makes managing risk more difficult. The core challenge is no longer just building; it is building while operating, which fundamentally alters the industry's risk landscape.

What’s Changed

Maritime infrastructure investment is accelerating, but many projects now take place in active operating environments. As construction and operations overlap, organizations face growing exposure to operational, safety, environmental and cyber risks that extend beyond traditional property damage.

Where Operations Are Most Exposed

Risk increases when construction and operations overlap. A single incident can disrupt cargo movement, delay schedules or halt shipyard production, while hot work remains a major fire hazard in active facilities.

At the same time, new equipment, software integrations and third-party access can introduce cyber-physical risks. Workforce safety and project coordination also become more challenging as employees, contractors and vendors operate in changing environments. Together, these exposures can compound quickly, escalating both operational and financial losses.

Where Coverage Falls Short

Many maritime organizations assume their insurance adapts automatically during construction. Gaps often emerge when projects are most complex. Programs typically separate construction and operational risks, but in practice, they are intertwined. Gaps arise at transition points, construction, testing, commissioning, and operations, where coverage is often assumed to transfer but does not.

Project values also increase during construction. New equipment, asset concentration, and operational changes can exceed policy limits if coverage isn't updated. While programs emphasize physical damage, business interruption from downtime is often the greater risk in active environments. This disconnect often remains hidden until a claim occurs.

5 Ways to Reduce Risk

Organizations managing these exposures effectively tend to take a more integrated approach to operational and project risk.

1. Separate Construction and Operations

Create clear boundaries between project zones and active operations to reduce congestion, equipment damage and injury risk.

2. Align Contracts

Clearly define responsibilities among owners, operators and contractors to avoid unintended risk transfer.

3. Model Disruption

Measure the cost of operational downtime, not just physical damage and repair expenses.

4. Update Asset Values

Review insured values throughout the project to ensure coverage keeps pace with growing exposures.

5. Treat Cyber as Operational Risk

Integrate cyber resilience into business continuity planning, not just IT management.

Are You Exposed?

• Are construction and operations occurring within the same environment?
• Have you quantified the financial impact of operational downtime?
• Do your policies align during testing and commissioning phases?
• Have asset values been updated throughout the project lifecycle?
• Are cyber risks incorporated into operational resilience planning?

If those answers are unclear, the exposure is too. The most successful projects are not those completed fastest or cheapest, but those that anticipate operational risk early and gain construction planning, contractual controls, and insurance before work begins. As investment accelerates, the ability to build while operating is becoming a core risk management discipline.

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.