The Yacht Insurance Buying Process:
1. Complete the quote form. Need the principal owner’s details, (such as full name, age, nationality, profession etc.), the yacht and tender details, the navigational area and the crew details; how many full-time-, part-time- or seasonal crew and their nationalities.
2. A recent survey may also be required.
3. We will submit the quote form and additional information to top-rated underwriters in the U.S. and Europe for quotes.
4. Once we receive the quotes back, we will review and compare them and send you the best option/options based on coverage and premium for your review and consideration.
5. Once you have decided on the quote to go with, we will help you to submit all necessary documents to the insurer, requesting them to bind the cover.The information requested usually include, but is not limited to:
- A completed application
- Captain’s license and resume. May require other senior crew members credentials
- Bill of Sale, (if this is a newly acquired yacht) to verify the yacht’s agreed value
- Hurricane Plan
- 12 months Itinerary
- Paid premium
6. The insurance needs to be bound at the time of closing. The actual policy is usually provided in acouple of weeks to a month after policy initiation.
Understanding Superyacht Insurance
Before purchasing yacht insurance (Hull, P&I) for your yacht or superyacht, it is imperative to align yourself with an insurance broker who is an expert in the field of yacht- and superyacht insurance coverage, with whom you are willing to initiate an ongoing professional relationship with. It is essential to do your due diligence before purchasing the insurance and ask questions about the coverage, policy exclusions and other possible restrictions to the coverage. Read the insurance contract once received and make sure it is exactly what you discussed with your insurance broker prior to binding.
The yacht insurance cover consists of two main policy sections, Hull, and P&I insurance. The “Hull” portion, (as the name says), covers the yacht itself, the machinery and all equipment, tenders and “toys” and accessories. “P&I” stands for Protection & Indemnity and is the liability section of the coverage that covers third party risks, war risks and risks of environmental damage such as oil spills and pollution. There are policy differences, and an insurance contract is not always easy to comprehend. Two common types of yacht insurance policy wording are an “All-Risk” policy and a “Named Perils” policy. In simple terms, an “All-Risk” policy covers everything, except what is listed in the policy exclusions. Whereas a “Named Perils” policy, covers only the perils listed as covered. Many policies exclude normal “wear and tear” from being covered.
Keep your insurance broker up to date with any changes to the yacht’s program, such as a new Captain and/or other crew changes, any changes to the navigation or if the yacht is going to a shipyard for routine maintenance, for a complete refit or for any repairs. It is essential to communicate these changes to your broker and if they are not pre-approved by the underwriters, could void your coverage. A new captain most likely needs to be “approved” by the Underwriters as “qualified” to run that type of vessel based on his/her license and experience on similar sized yachts. A copy of the license and the CV, plus any past claims records and experience are normally required and submitted to the Underwriters for approval. Furthermore, the Underwriters may also ask to see the credentials of the First Mate and engineer for approval.
It is important to address if there are any changes to the yacht’s itinerary; the navigational area may need to be updated to make sure that your insurance covers in that area. The shipyards usually have their own policy in place, but this needs to be addressed prior to the work starting. Always have the owner’s insurance broker and maritime attorney review the yard liability policy thoroughly. Full details of work being carried out is necessary to provide to the insurer, including any “hot work”, defined by the Occupational Safety and Health Administration (OSHA) as “riveting, welding, flamecutting or other fore or spark-producing operation performed aboard a yacht”, which MAY be excluded from the policy.
Common Yacht Policy Warrants:
- Qualified Captain at all-times
- Agreed Navigational area only
- No towing of tenders until a tow plan has been seen and agreed by Underwriters
- Private Crew medical Insurance policies in place at all-times
Find The Right Yacht Insurance Agent For You
Do your due diligence and find an insurance agent you want to work with and who SPECIALIZES in the luxury marine industry, offering insurance policies and coverage for yachts- and superyachts.
We have been in the marine insurance business since 2002. We will search the international and U.S. insurance markets for the most suitable coverage at the best premium for your luxury vessel.
Contact us when you are about to purchase your luxury yacht, when it has been built and you are ready to take possession, or when the current yacht policy is up for renewal. We have insurance markets and provide marine coverage for yachts valued $3 million and up. We are happy to review your current insurance policy and can also recommend a suitable global crew medical plan. We will make sure that the coverages do not over-lap or that you underinsure.
