Designed to cover damage to waterborne craft and installations and liabilities arising from their use or ownership regardless of type and use, for which different policies exist.
The following are the typical policies available.
Pleasure Craft Insurance
This policy covers yachts, motorboats and personal watercraft, with or without engine, for private pleasure use in open and inland waters. It includes “extras” as are tenders, outboards, sails, equipment, generators, winches and personal effects and offers protection for such perils as are those associated with navigation, inland transit, fire, storm, lightning, malicious damage, theft and impact. This policy also generally covers third party liability risks which can be insured on their own, without the damage element.
Hull & Machinery
This policy covers loss or damage to waterborne vessels and is usually taken up by owners and operators of larger vessels regardless of whether used privately or commercially. It will typically cover the same perils found in a pleasure craft insurance with additional perils relating to the nature or use but will exclude liability to others.
Protection & Indemnity
This policy covers ship owners and operators for their liability including for damage to cargo, other vessels, marine installations and docks, for loss of human life as a result of sickness or accident, and marine collisions.
This is a supplementary insurance intended to cover the war-related exclusions that are usually found in the Hull & Machinery and Protection & Indemnity policies and covers damage caused by war, civil war, revolution, rebellion, capture, seizure, arrest, restraint or detention.
This is the policy taken out by fish farm operators and covers buildings, installations, equipment, employees, stocks of feed, livestock, vessels, divers, towing and transit, employees and other liabilities.
Frequently Asked Questions
The policies do not generally exclude Acts of God but such occurrences are referred to by their proper peril names as are storm, lightning, tsunami and earthquake.
Although not preferred, some insurers may consider covering vessels and installations for specific periods, typically during the summer or trading months and usually at short-period higher rating which means you pay more per month. Although this may still be less that what you would pay for an annual policy it also means that you are not covered for a large portion of the year. When a vessel or installation is laid up or out of use it is still exposed to a lesser degree of risk and accidents may still occur then and it is therefore advisable to insure all year round.
Some countries require additional proof of insurance. Italian, Greek and Spanish authorities, for instance will require sight of a specific certificate confirming that your insurance policy is in line with their respective legislation. Your insurance company should be able to furnish you with these certificates, generally at no additional cost.
The following are the most common exclusions found:
- Wear & tear
- Wilful damage
- Loss of value following accident or repair
- Machinery Breakdown
- Theft not following forcible entry or exit
- Lack of maintenance or due diligence
- Use other than that agreed and specified in the policy
To effect renewal you may: