Significant wealth goes into the purchase of a yacht or a motor boat so what needs to be considered when it comes to insurance?
As a yacht owner, whether you are cruising around the world or sailing close to home, it is important to make sure that you protect not only the asset itself, but consider the need for things such as insurance of crew, removal and storage and environmental damage.
In many cases, significant wealth goes into the purchase of a yacht or a motor boat so what needs to be considered when it comes to insurance. Paul Andrews spoke to Giles Greenfield from Markham Private Clients to find out more.
As Giles points out, “we are well-versed in the intricacies of protecting yachts and motor boats – regardless of size. We manage the risk whilst our clients enjoy the serenity of the water. It is important that owners are prepared to experience a safe journey safe in the knowledge that their vessel is protected when they follow their charted course.”
Insurance of yachts and motor boats is a complex area and will depend on the individual circumstances and plans of the owner but as Giles explains, there are various options available and the key things to consider are:
All risk cover
This yacht policy provides broad cover for virtually all types of risks. You can be assured of the same high quality cover for yachts and motor boats of any size, from small boats to super-yachts.
Worldwide navigational limits
Check the capacity of the policy to insure pre-defined or worldwide navigational limits based on your specific cruising plans.
Your yacht insurer needs to respond to your changing insurance requirements, for example if you need both high hull values and high Protection and Indemnity (P&I) limits.
Comprehensive cover can not only protects your yacht in the event of a loss, but can also cover items such as tenders, fine art, personal property and furnishings at separate lower excesses.
Flexible excess options
Care needs to be taken to ensure you have the right policy and cover to meet your needs and over time these needs may change so a flexible excess options policy may be more beneficial to you.
Temporary removal and storage
Terms can also be crafted to cover your yacht’s masts, spars, sails, equipment, tenders, personal watercraft, outbound motors and contents against physical loss or damage while in temporary storage on land and in transit to or from your yacht.
Newly acquired yachts
With this cover you can purchase yachts with confidence knowing your new yacht or tender will be covered up to 30 days from purchase.
Where crew are involved there are liability risks and issues so policies need to be considered where damages will be paid for which you are legally liable to pay for injuries sustained by crew members while employed on your yacht.
Environmental damage protection
Policies can be taken out with environmental damage protection included so expenses are reimbursed in relation to pollution and/or marine environmental damage caused by a covered occurrence, up to the Protection and the Indemnity limit on your policy.
Insurance is a vital part of life in the world in which we live today and clearly helps to give peace of mind over valuable assets and property. As Giles explains, “the investment in a yacht or motor boat is often significant and protection of this investment is important.”
“Having the peace of mind that the asset is covered is paramount to ensure that pleasure can be derived from sailing without concern over potential issues arising down the line. It is important to have the right cover in place and to make sure that all aspects of the yacht, its contents and the planned enjoyment of the yacht can be protected at all times,” concludes Giles.