Marine insurance is one of the oldest forms of insurance dating back to the 14th century, where it provided property coverage for ships and cargo. In the modern era, marine insurance has expanded to encompass several different forms of coverages and plays a vital role in commercial business.
At AM RE, our Marine Reinsurance is divided into two subcategories – Inland Marine and Ocean Marine. Inland Marine covers goods in transit as they move inland while Ocean Marine protects Hull and Cargo once they are taken to sea, along with Protection & Indemnity (third-party liabilities).
Are Yachts Covered by Marine insurance?
Yacht insurance falls under the branch of Ocean Marine and provides indemnity coverage for a sailing vessel. Yacht coverage is more specialized than the average pleasure boat coverage due to the distance a yacht can sail, posing a greater risk.
Yacht cover will depend on various factors, including but not limited to:
Size of the Vessel
Age
Ownership
Navigation/Operation
Value
Type & Use
Speed
Crew and passengers
The main reason someone should consider purchasing cover for their yacht is that it provides protection against financial loss suffered in the event of an unforeseen incident. This may result if an incident occurs and a third-party claims damage to their vessel, a passenger has been injured, or if a yacht is damaged.
What is Covered Under a Yacht Policy?
A yacht insurance policy is typically broken down into two parts: Hull insurance and Protection and Indemnity (P&I). Hull covers direct damage to the vessel and equipment on board based on an agreed value. P&I will cover liability claims, such as injuries sustained by another person or damage to third party property.
Yacht insurance policies are highly customizable with optional coverages available that can include coverage for a trailer, lift and boat house, transit and storage, and trip coverage.
Typical exclusions include:
Wear and tear
Infestations
Competitions
Unnamed operators
Design defects
Ice and freezing
Where does AM RE fit into all this? We assess each marine portfolio by examining historical experience in each class using our in-house analytics, innovative loss control solutions, and a deep understanding of current market rates. Our reinsurance underwriting team comprises of former primary underwriters, allowing them to adequately evaluate individual risks and transfer this knowledge to our reinsurance portfolio.