Yacht Insurance - Introduction
Hello and
a warm welcome to this site which has been designed to
provide you with as much information as possible about yacht
insurance, and in particular to explain some of the insurance issues
for buyers of larger yachts in the UK and Europe.
Whilst we all hate the prospect of paying to cover ourselves for something which may never happen, failing to insure your yacht and your liabilities is foolhardy in the extreme. Surprisingly in the UK it is still not a legal requirement to insure your yacht, provided it is used solely for pleasure purposes. However, most reputable marinas and harbours will insist on seeing a valid insurance policy, covering your liabilities to others, and in many European countries it is essential that you carry a copy of your liability insurance schedule, confirming that you are covered up to levels required by the different national authorities. A good insurer will provide you with a certificate in several European languages for this purpose. If you finance your yacht with a marine mortgage or a lease then you will certainly require comprehensive insurance cover which will need to be approved by the lender.
These days more people are chartering out their yachts to defray some of the costs of ownership. It is a legal requirement that any UK registered vessel offered for charter, anywhere in the world, complies with requirements of the MCA, (Maritime and Coastguard Agency), codes of practice for the safety of commercial vessels. These codes are designed to ensure the safe passage of paying guests and, apart from the overall design and construction of the vessel, cover such aspects as adequate crewing, safety equipment and the maximum number of passengers which may be carried. Vessels registered outside of the UK and offered for charter will need to comply with the requirements of that country. Your yacht insurer will need to extend the coverage to cover commercial use and may apply higher premiums and/or deductibles.
So I hope that this site will explain some of the more complex issues of owning and insuring a large yacht, particularly those surrounding the use of the yacht for chartering, which can be an attractive proposition, but there are many issues to consider before going ahead. These will include the insurance itself, reclaiming VAT, MCA coding of the yacht, and crew insurance.
If you are simply looking for a quote, then please just click on the button above which will take you to the relevant page and a simple form to complete online. Although we are on online business, you will be dealing with real people with real names, David & Anna, so your enquiry is very important to us and will be dealt with accordingly. We always acknowledge all enquiries very quickly, whether for yacht insurance, marine mortgages or yacht leasing, and we pride ourselves on our personal and prompt service.
Let's start though by looking at the yacht insurance market and some of the trends which may affect the premium you eventually pay for your policy. If you would like a detailed explanation of some of the terms you are likely to come across when reading your yacht insurance policy, please have a look at another of our sites, which explains these in detail if you are looking for boat insurance uk.
Yacht Insurance - The Market
Despite the current economic climate, yacht ownership in the UK and Europe is still showing strong signs of growth with little evidence of a slow down in demand. Yacht manufacturing in Italy remains strong with almost 50% of the world's yachts over 24 metres being built here alone. Over the past few years there has been considerable consolidation in the yacht insurance market, following the problems early in the new millennium, with many companies and brokers struggling to survive, and the complete withdrawal of some providers from certain sectors of the market. The insurance market has generally changed over recent years , particularly with the introduction of regulation by the Financial Services Authority in 2005. This brought with it a burden of regulatory requirements which has lead to many smaller firms being swallowed up by larger groups. Yacht insurance has always been a specialist market with the majority of high street brokers unable to adequately advise their clients , so it is essential to talk to people who are fully trained and experienced in this specialist field. With a tightly regulated market and better controls, the information and advice you receive should be significantly better than before these changes. More importantly however, what about your premiums, will you be paying more or less in the future?
Over the last few years the yacht insurance market has seen a dramatic increase in the number of fires on board with 65%-70% of these occurring whilst the yacht was on its mooring, and with one third originating from electrical faults. This trend is due to the improvements in marina facilities with electrical systems often being left turned on whilst the yacht is left unattended, with claims being substantial. In one case recently, seven other yachts were either completely destroyed or damaged following a single onboard fire. Of greater concern has been the huge increase in the number of claims for personal injury and this is a major problem for any underwriter, as the growth in no-win, no fee claims, continues to rise. As a result, liability cover has generally risen from around £2 million of a few years ago, to nearer £3 million as the industry standard, which has inevitably led to an increase in premiums. Whilst this area has undoubtedly led to a rise in rates, other factors have also played a part, including theft of the boat itself, damage or loss to underwater gear, and the environmental legislation now banning the use of Halon fuelled fire extinguishers on UK based boats.
There are a few highly reputable UK companies specialising in yacht insurance. Pantaneius is one of these, having a reputation for the sound information they provide, together with high standards of customer service and claims handling backing up a very comprehensive policy. The company has offices in strategic locations across Europe and in the USA, and a network of contacts worldwide to assist with claims, so help is never very far away! We will be delighted to introduce to them you via the link below which will take you to an Enquiry Form on their website. Marinablu will receive a commission for any introduction made to Pantaenius UK Limited via this website. This commission will not be added to the premium quoted.
On the following page we have provided a simple form to complete if you would like a quote for yacht insurance.
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Marinablu International Ltd is an Introducer Appointed Representative of Pantaenius UK Ltd who are authorised and regulated by the Financial Services Authority (FSA) - yacht insurance