The A-Z of Yacht Insurance: The Complete Guide You Need to Know

Introduction

Introduction: Despite obtaining standard boat insurance or extended homeowner’s insurance, a yacht owner may not get comprehensive protection for their yacht on the sea. Some perils may always remain uncovered. To cover these gaps and ensure complete security coverage for your yacht, obtaining a suitable yacht insurance policy is essential. In today’s dynamic marine industry, many yacht owners might have heard about this insurance. However, most of them do not have a clear idea about what this insurance policy is and how to leverage its benefits in the best possible way. So, this blog is here to guide yacht owners on the yacht insurance policy, its coverage, and how to obtain the right coverage option under this insurance.

Understanding the Categories of Yacht Insurance

The yacht insurance provides comprehensive indemnity liability coverage to your yacht. Vessels that are under 197 feet long can be covered under this insurance policy, as there is no specific length for a yacht that has been mentioned yet. It has two major parts- hull insurance and professional indemnity (PI) insurance. While the first protects the hull and machinery of the yacht including sail, equipment, engine, and personal property, the second part covers the legal obligations to other parties. In the context of yacht insurance categories, it can be categorized into two types. They are:

• All perils
• Named perils

All peril yacht insurance policy provides broad coverage against all potential risks of damage and losses to the vessel, except some that are explicitly mentioned as excluded in the contract.  On the other hand, peril yacht insurance covers only those specific risks that are included in the contract. The all-peril type is ideal for larger and high-value fleets that are sailed often in diverse conditions, whereas the named-peril type is a cost-effective option for yacht owners who can proceed with limited protection.

What does Yacht Insurance Cover and What does it not?

Often, confusions hover around regarding yacht insurance coverage. Here are some indepth insights on this segment. Yacht insurance mostly covers:

• Third-party damages and/or losses
• Damages and/or loss to the vessel’s body and machinery
• Medical costs for crew’s and/or passengers’ injury
• Legal expenses related to own vessel damage or third-party liability
• Marine environmental damage and pollution coverage

The perils that are broadly covered under suitable yacht insurance policies include:

• Sinking and capsizing
• Collisions
• Adverse weather conditions
• Natural disasters
• Fire and explosions
• Lightning strikes
• Piracy and other armed attacks, etc.

Depending on the insurer, the covered perils may vary a little. However, the risks that are generally excluded in yacht insurance policies comprise:

• Routine wear and tears
• Corrosions
• Mechanical failure due to the vessel’s age,

The above-mentioned risks are not covered as insurers naturally expect yacht owners to take care of the vessel. If any damage or loss comes up even taking proper care of the yacht, the policy is there to cover them. Also, claims arising from unapproved modifications and war, terrorism, and political unrest are usually not covered under any type of yacht insurance.

How to Obtain Right Yacht Insurance in UAE

To ensure all-around coverage for your vessels and hassle-free claims, you must get the right policy. The crucial steps to follow for obtaining the right yacht insurance in the UAE include:

Step 1: Assess your needs depending on your yacht’s usage, sailing area, type, and possible risk profile.

Step 2: Choose a reliable insurance service provider who can connect you with a licensed and reputable insurer with successful claim records.

Step 3: Compare the different plans available including coverage, exclusions, and add-on benefits.

Step 4: Finally, understand the claim process and obtain your preferred yacht insurance policy.

By following the essential steps, you can obtain yacht insurance without any hassle. In this context, remember that taking necessary safety measures to keep your vessels in good condition and implementing risk management strategies can help to reduce your policy premiums regardless of the coverage you obtain.

About CoverB

As a one-stop destination for all types of insurance needs in the UAE, CoverB helps to obtain a wide range of insurance policies, including yacht insurance. Any yacht owner can obtain preferred insurance policies effortlessly with the help of CoverB experts. Besides this policy, CoverB guides people to purchase diverse insurance policies like individual and group health insurance, D&O liability insurance, and so on, with customized coverage scopes.

Final Words

Owning a yacht means the scope of living a luxurious life at sea. On the other hand, when you have a fleet of yachts you have great opportunities to explore the marine industry and earn your livelihood sustainably. But, while enjoying the benefits, fulfilling the responsibilities to protect the yacht from all types of risks with the help of yacht insurance is important. So, contemplate the insurance requirement of your yacht and contact your trusted insurance Advisory  to obtain a suitable yacht insurance policy.