Physical damage and liability encompass the two major sections of a yacht insurance policy.  The physical damage covers accidental loss or damage to the boat and its machinery.  It covers the engine, hull, sails, and other equipment on board required for boat operation.  The liability portion covers your legal obligations to third parties arising from bodily injury or loss of life, or damage to another’s property, as resulting from the ownership or operation of your boat.  It also helps pay for your legal defense if you are sued for a liability covered under your yacht insurance policy.

Yacht insurance typically usually covers loss and damage of the vessel from several perils such as wind, rain, hail, lightning, wave action, fires and explosions, sinking, stranding, collision, and jettison.  Some policies also include latent defect clauses that cover ships from resulting damages.  For example, an error in the vessel hull lamination results in it breaking open and causes it to sink.  Latent defects include faulty materials, design, and workmanship, but exclude the cost of repairing or replacing defective parts.  They do not cover the actual defect itself and thus such responsibility falls on the manufacturer to provide warranties for their own products.

Both direct loss from fire and fire as a result of some other catastrophe, as well as explosions occurring on- and off-board are covered.  Protection includes yacht sinking due to reefs, sunken hulks, and floating debris and stranding against filled channels and sand bars.  Yacht insurance can also safeguard the owner from collisions that cause damages to other vessels. Captains voluntarily sacrificing their ship’s cargo to lighten loads during a time of distress, such as rapid sinking, can order a last-ditch jettison and obtain compensation from their yacht insurance company. You may also want to consider additional coverage of personal property for clothing, personal effects, and sports and fishing equipment, and reimbursement for any towing or delivery assistance of fuel or parts.

Marine insurers offer a wide range of coverage suited to their company’s expertise level, underwriting passion, and type of customer they hope to attract.  The marine insurance specialists at Global Marine Insurance Agency can ensure you have the best combination of coverage and price that meets your yacht insurance needs by sorting through the exclusions, deductibles, and maximum annual claim limits that vary from company to company and identifying the best options for you to review.