There are many yacht insurance clubs around the UAE, some of them offer special coverage for the elite. They are of course, written by particular Insurance Companies and are privy to a group rating. This allows them to keep the insurance costs quite low, plus increase and secure an attractive package for the member. A group yacht insurance policy does offer basically the same coverage as the non group policies. It is, however, wise to investigate and compare an alternate insurer to confirm you are getting the coverage you need. One very important liability coverage to look for is the type of protection it gives your crew members, should anything happen.
The base of the policy is the liability and the hull of the vessel. Other than the obvious coverage for the type, length, and value of the yacht, the prices are determined by the jurisdiction in which the vessel is registered and moored.
It is not just the coverage provided on the policy that is important, it is also the way they handle their claims service. You wouldn’t want to have hit something out there in the ocean, and have to wait 3 days for an adjuster to approve a tow for you. Claims Adjusters should be at arms length when needed and respond quickly. This would be the type of claim that you ask questions after the fact. A good Yacht Insurance Company should have excellent claims service. If it costs a little more, it would probably be to your advantage.
There should be a few liability situations that stand out such as:
1. Coverage extends to cover people who you have allowed to use the yacht for short periods of time.
2. Offer complete coverage if you charter out the yacht to the public
3. The crew members working the charter would all still be eligible for all coverage that the actual policy provides to them; and
4. The people that charter your boat, must have proof of their own liability insurance in case of any type of damage or personal injuries they cause another person or damage they cause to the boat.
Contractual liabilities
You are covered for any contractual indemnities which you are required to accept under a club, marina, or supplier’s standard terms and conditions. Most rights of subrogation are waived. If you are to enter into an agreement, you must offer the agreement to your Company to review and approve.
Crew compensation
Type of coverage for crew compensation for accident, personal injury, illness or death. Ensure that any legal representation cost and expenses are covered.
Water sports
Personal Injury Claims arising from the use of water sports equipment, belonging to you and stored by your yacht.
Racing cover
A Company will usually cover sailing yachts participating in casual racing events or those organised by yacht clubs. There are restrictions on the type of racing that occurs, which should be read carefully before participating. If your yacht’s principal purpose is competitive racing, you will need to inform the Company.
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