How to choose the right Yacht Insurance?
You are a proud owner of a (or many) yacht. Among the many things to get sorted for docking and maintaining your yacht, you are probably also concerned about what will happen if the yacht gets stranded in the sea, the body parts of the yacht get damaged or the things and people on the yacht get hurt because of an accident. They are concerned about the financial consequences if something wrong happens. The most prudent way one can overcome the financial uncertainties and stay at peace with such a significant investment is yacht insurance.
Yacht Insurance– It’s an insurance policy that provides indemnity liability coverage for a sailing vessel, including liability coverage for bodily injury or damage to other’s property and personal property on the vessel. Some insurance providers also cover gas delivery, towing, and assistance if the yacht gets stranded.
The two basic sections of yacht insurance
Hull and Machinery (H&M)
Loss or damage to the boat and its machinery, which includes the hull, sails, personal property, and equipment necessary to operate the boat, is covered in this section of yacht insurance. In other words, the H&M provides cover against all perils to which the yacht may be exposed, with some exclusions.
The exclusions vary from insurer to insurer. So, you should check the fine print of the policy to know what all are exactly covered for you.
Protection and Indemnity (P&I)
Legal obligations to other parties, which include bodily injury, loss of life, pollution, or damage to third-party property, while the boat is operating or under your ownership, are covered in this section of the yacht insurance. In other words,
- The third-party property damage includes loss or damage to any other boat, harbor, or dock caused by your boat.
- The bodily injury includes claims for loss of life, personal injury, and illness of guests onboard.
- The pollution includes the cost of clean-up, prevention measures, and third-party liabilities involving an accidental discharge.
- The legal cost includes the cost of correspondents, lawyers, surveyors, and experts hired to handle any claim or legal defense.
Other than this, one can get additional coverage in the yacht insurance, which includes uninsured boater coverage and personal accident to the crew.
What are yacht insurance underwriting rating considerations?
- What’s the age of the captain?
- What’s the name of the boat and its construction details (including year, make/model, type, dimensions, engines, and maximum speed)?
- What’s the navigation limit of the boat?
- Is the boat privately or commercially used?
- What’s the passenger capacity of the boat?
- What’s the history (including loss, and damages) of the boat?
Is yacht insurance expensive?
Yacht insurance doesn’t have to be very expensive. Having this insurance ensures peace of mind, as the financial liabilities arising out of an accident or injury can be significant.
There are many insurance providers in the UAE market and shopping around will ensure that you get the best possible rates. When looking for yacht insurance, contact New Age Insurance Brokers as we can help design the right insurance policy for you and then shop around to get the best premiums.