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Covered

10 May 2023

Last revised

minutes

6

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Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open.

minutes

6

Reading time

10 May 2023

Last revised

Compliance with the more obscure flag state regulations and local laws can sometimes seem like unnecessary hassle and expense. Yet if you, as owner, are to remain protected in the event of an accident, investing in detailed compliance may be money well spent. You also need to keep lines of communication with your insurance broker open.

  • Warranties are requirements that must be fulfilled by the policyholder to manage risk in insurance situations.

  • Breach of warranty no longer automatically avoids all liability for underwriters since 2016.

  • Underwriters remain liable for losses occurring after a breach of warranty if it can be remedied.

  • If a loss occurs while the insured is in breach of warranty and the breach increases the risk, underwriters can deny liability.

  • Breach of warranty regarding past facts may permanently suspend the underwriter's liability.

  • Identifying warranties in a policy is crucial as they can be expressed or implied by law.

  • Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc.

  • The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht.

  • Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims.

  • Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations.

  • Identifying warranties in a policy is crucial as they can be expressed or implied by law.

  • Popular policy forms include warranties related to the purpose of use, navigation limits, vessel control, etc.

  • The warranty of legality is an important implied warranty that covers lawful adventures and lawful usage of the yacht.

  • Seaworthiness may not be explicitly required in policies, but it can impact coverage and claims.

  • Sensible precautions, such as using approved charter agreements and verifying crew qualifications, are recommended to ensure coverage and compliance with laws and regulations.