What is Yacht Insurance

Yacht insurance offers protection and compensation against physical damage, theft and other investable risks which your yacht may face whilst navigating international waters. Yacht insurance is adopted by vessel owners as a form of risk management to minimize their liabilities against damage incurred. Finding an appropriate yacht insurance policy is important, as there are many types of marine insurance available and it is essential to select the right policy that meets your needs.

Yacht Insurance Explained

Yacht insurance is a specific type of insurance that protects marine vessels from a range of liabilities. Yachts are typically covered for risks such as loss or damage to property, pollution risks and wreck removal.

Yacht insurance usually covers watercrafts which are around 27 feet and above. Each yacht will require a specific yacht insurance policy according to their intended activity and the waters they intend to travel in. There are two main forms of yacht insurance, including hull coverage, and protection and indemnity coverage (P &I).

Hull coverage insures the yacht from a range of damages, including machinery, natural disaster (earthquake, volcanic eruption) and fire damage.

Protection and Indemnity insures the yacht against risks including collisions, wrecks and pollution damages.

Due to the unpredictable environment that yachts are kept in, it is vital to obtain insurance to cover your vessel against any potential damage or risk. Expensive vessels can be destroyed due to a range of risks whilst on the waters, whilst the insurance provides compensation for any losses to the vessel owner.

In order to obtain insurance which meet your yacht purposes, it is advised to seek a professional consultancy firm, as they can assess your insurance needs and recommend the most appropriate insurance policy for you.