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Types of

Insurance

26 March 2023

Last revised

minutes

8

Reading time

The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through.

minutes

8

Reading time

26 March 2023

Last revised

The type of insurance you need depends on the size of your yacht – and how you use it. Various types of cover can be combined within one product. Having insufficient cover can breach local laws, but be careful not to buy cover you don’t need. And make sure you understand the role of the company you’re buying the policy through.

  • Large yacht ownership involves various risks, and insurance coverage is available to mitigate those risks.

  • Compulsory insurances are required by port authorities, including third-party liability cover for yachts over 300 gross tonnes.

  • Protection & Indemnity (P&I) Clubs provide liability coverage and support for yacht owners, often combined with Freight, Demurrage & Defence (FD&D) cover.

  • Employers' liability insurance is required under UK law for the legal owner's liability for employee injuries.

  • Maritime Labour Convention (MLC) requirements include liability coverage for repatriation, outstanding salaries, and occupational injury-related payments for crew.

  • Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents.

  • Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members.

  • Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks.

  • Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories.

  • Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance.

  • Crew welfare insurance covers medical costs and financial repercussions for crew members in case of illness or accidents.

  • Oil pollution insurance is necessary to cover the legal owner's liability for oil spills caused by crew members.

  • Wreck removal insurance is required by some countries and mandates coverage for the costs of removing wrecks.

  • Hull & Machinery insurance covers loss or damage to the yacht, its engines, equipment, fittings, and accessories.

  • Additional coverage options include war & strikes, fine art & valuables, subsea equipment, kidnap & ransom, project risk, and project liability insurance.