Cruise Confident
Additional Coverages
No two yacht insurance policies are the same.
See how you can modify your coverage to fit your needs.
How Can I Modify My Policy?
While most yacht insurance policies include two principal parts - Hull Insurance and Protection and Indemnity (P&I) Insurance - boat owners may tailor their coverage to fit their specific needs.
Some additional coverage limits may include:
Live-Aboard
If you plan on living aboard your vessel, you may need to purchase an additional Live-Aboard Coverage in addition to your standard insurance policy. Live-aboard Coverage may be obtained through several methods depending on your specific needs and existing policy. Some boat owners may opt to purchase coverage in conjunction with a homeowners policy, most of which are written on an Actual Cash Value (ACV) basis. Others may opt to purchase a specific live-aboard coverage to attach to their existing insurance, which is more common with yacht policies designed to insure larger vessels, provide comprehensive coverage, and are generally covered on an Agreed Value basis.
Consequential Loss
While most yacht insurance policies provide coverage against standard perils such as collision and vandalism, it's important to know whether or not your policy also provides coverage for consequential losses. Consequential losses may occur as a result of a direct loss to another part of your vessel that has not been specifically covered. For example, if your raw water cooling hose ruptures or your shift cable boot cracks, causing your boat to sink, this would be considered a consequential loss.¹ While the direct cause of loss may not have been specifically insured against, policies which include consequential losses may provide indemnity in these circumstances.
Occasional/Unlimited Charter
If you intend to use your vessel as a charter, you must obtain the applicable charter-specific coverage required beforehand. Without this, you may be vulnerable to significant legal and financial risks. Whether you plan to use your vessel as a full-time charter or simply run occasional charters on the side, accepting payment for any type of boat ride will create a passenger liability exposure. Boat owners who intend to charter their vessel must carry the required insurance applicable to their intended use, which may be obtained on either an occasional or an unlimited basis. In addition to carrying the applicable insurance, charter operators must also obtain a captain's license as well as become certified for first aid and CPR.
Paid Crew
Whether you are at sea or in port, boat owners who've hired a paid crew for their vessel must ensure they also obtain Marine Crew Insurance. Although some policies may already include medical insurance to paid crew through their Protection and Indemnity (P&I) Insurance sections, vessels that regularly employ a paid crew will additionally require Marine Crew Insurance to avoid gaps in coverage. These insurance plans are designed to provide long term, comprehensive and flexible medical coverage that applies both at sea and on land. Marine Crew Insurance may be tailored to fit your specific needs, including geographic coverage, policy maximums, and variations in deductibles.
Search & Rescue
In a worst-case scenario that you or one of your passengers become lost at sea, carrying this additional coverage may dramatically decrease the costs incurred from a search and rescue operation. Beyond the upfront cost of a search and rescue operation, additional expenses may be subsequently incurred through medical assistance, damages sustained in the rescue, and travel expenses. Yacht insurance policies typically offer up to $50,000 for expenses related to these operations.²
Personal Items
While a standard yacht insurance policy provides coverage for property and liability, opting to include Personal Effects and/or Fishing Equipment insurance may provide additional protection for your personal items. By choosing to carry this coverage, your valued items may be covered against loss, damage, or theft. Coverage may be applied to items aboard the insured vessel, while being loaded onto or off the vessel, or within a specific distance (e.g. within 25 ft. of the vessel). Boat owners may also opt to carry Watercraft Equipment Coverage, which provides protection for accessories installed on an insured vessel that were not installed by the original manufacturer as part of the original sale.³
Towing & Assistance
Regardless of how new, well-built, or well-serviced your boat is, breakdowns happen. Boat owners can be prepared for this by either obtaining Towing & Assistance coverage or subscribing to an on-water assistance organization. Carrying coverage for towing and assistance in addition to your standard policy may provide reimbursement for expenses incurred for emergency assistance operations in situations where you and your boat are not in immediate danger. This may include towing your vessel to a repair facility, delivery of fuel or parts, or emergency labor while underway.⁴ Boat owners can alternatively prepare themselves by subscribing to an on-water assistance organization such as Sea Tow or TowBoatU.S.
Pollution
Although pollution has historically been covered under the liability section of a yacht insurance policy, some insurance providers have recently instated separate limits for Pollution/Fuel Spill coverage. In some circumstances, boat owners may become liable for any containment or clean-up expenses incurred as a subsequently to a loss or wreck. It is important to ensure your policy provides protection for your liability in these circumstances as vessel owners are liable under the Oil Pollution Act of 1990 up to the statutory limit ($939,800 as of current).⁵
Dinghy & Tender
While some insurance providers automatically include dinghies or tenders as a covered item in the hull definition, others may require boat owners to purchase an additional coverage. Coverage for your dinghy or tender is contingent upon the terms of your respective insurance provider. Companies that provide automatic coverage for dinghies or tenders may apply the same deductible as your primary vessel, or may allow you to schedule your tender to obtain a lower deductible in exchange for an additional premium. Be sure to consult your broker regarding the status of your additional vessels when drafting a policy.