Ensuring Yacht Security: Take Action Today for Peace of Mind

Insurance – it’s a topic that rarely garners enthusiastic conversations, often relegated to the back of our minds until we find ourselves in a situation where it’s absolutely essential. It’s a crucial aspect of safeguarding the yacht. Let’s delve into the often-overlooked realm of yacht insurance, where the cheapest deal may not necessarily be the best, and where a proactive approach can make all the difference in a time of need.

Recent years have seen a degree of turbulence, creating challenges for both insurers and yacht owners. Hurricanes, fires, and economic factors have driven changes, making it essential to secure comprehensive coverage. The events of 2017, notably the losses incurred by Lloyd’s, reveal the financial impacts faced by insurers. 2017 alone, Lloyd’s incurred losses of £232.8 million, far exceeding the revenue of premiums collected that year, an estimated £150.1 million. It was at least the third year of continued losses. A remarkable incident, the 2018 fire at the German shipyard Lürssen, led to an astonishing $700 million (some even speculate $1bil) insurance claim, marking the largest claim in the history of the marine insurance industry.
As recently as this past June, a fire occurred at the same shipyard, fortunately sparing both yachts and buildings from damage. However, the lingering risk underscores the necessity of comprehensive insurance coverage.

Understanding the Essentials: There are two primary types of insurance to consider: Hull and Protection & Indemnity (P&I). Hull insurance covers the physical damage to your vessel and its appurtenances, while P&I provides crucial marine liability coverage for third-party claims. These categories form the foundation of your yacht’s protection, and understanding their nuances is vital.

Collisions and the Rising Costs: Collisions remain a significant cause of insurance claims in recreational boating. As the speed potential of vessels increases, so does the severity of injuries, underlining the necessity for comprehensive coverage. It’s crucial to recognize that the cost of insurance, while it might see occasional fluctuations, remains a relatively small component of overall operating expenses. And despite recent pricing adjustments, it remains reasonable considering the value it provides in safeguarding your yacht and investments.

Shielding operating expenses through Fuel Price Protection: This distinctive coverage, exclusively available at OceanShield serves as a powerful tool, mitigating the effects of volatile fuel prices on operational costs. It holds particular significance for yacht owners seeking cost stability and predictability.

Revise and Reassess: Moreover, an independent broker’s role goes beyond initial coverage. They can review premiums and coverage, balancing them against the price ratio. This process, often neglected after policy signing, ensures yacht protection aligns with evolving needs.

Act Now, Sail with Confidence: Don’t wait for the unexpected to strike; take charge of your vessel’s protection today, ensuring that you’re prepared for whatever challenges may arise. In the end, the peace of mind and security provided by the right insurance is worth every consideration, ensuring you can continue to sail with confidence.

Published in Dockwalk October 2023 Magazine

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity.