Superyacht Insurance Solutions
Carter Chase have developed specialised cover for hull and machinery, for Fine Arts and Antiques, for dinghies, jet skis and helicopters, for claims made by other parties involved in an accident, or for paid crew – our luxury yacht insurance products are adapted to your requirements and give you the highest degree of financial security.
When the time comes for claims adjustment – particularly with claims involving complex circumstances – Carter Chase will be there to offer expertise and an international network of shipyards, surveyors and suppliers to help you.
You can rest assured that whatever happens to you and your yacht, wherever you may be – you can rely on us to assist you.
We have formulated personalised superyacht insurance concepts for you, taking into account such factors as:
Classification
Registration/flag
Yacht management
Paid crew
In addition, we have developed specific insurance solutions to cover the risks associated with over-the-side activities and water sports that are not available anywhere else on the market.
Frequently Asked Questions
What is a Superyacht?
A superyacht is generally considered to be a large luxury yacht of about a hundred feet or more in length and which employs a number of permanent crew in addition to the captain. Sums insured may range from one million sterling upwards.
What kind of insurances are recommended for Superyachts?
Hull and Machinery
Hull Insurance covers damage to the yacht or its total loss resulting from an insured peril. Yacht hull insurance normally covers the hull, machinery, rigging, navigational equipment and tender and outboard.
Most ship hull policies are based on conditions contained in the so called Institute Hull Clauses developed over the last two centuries. When private yachting began these clauses were also used as the basis for insuring yachts. Even now many policies are based on these clauses though some companies including Carter Chase have developed polices which are more suitable for the insurance of private yachts and also more easily understood by those of us who are not marine lawyers.
We can provide cover for your vessel based on a choice of policy wordings and conditions available in the market as well as the unique Carter Chase Yacht Hull Clauses.
Increased Value
An increased value policy is commonly used to insure part of the value of a superyacht as a way of keeping the premium down without affecting the cover. For those interested in the history and operation of this type of insurance, read on!
The sum insured for larger yachts and commercial ships is usually split into two parts – hull and increased value. Originally the increased value was an amount in excess of the basic hull value to allow for any increase in the market value of the vessel (this varied considerably during the period of the insurance and the owner may have found himself at a disadvantage if the vessel was lost during a period of market upturn and the insured value did not cover the cost of a replacement) and also the disbursements ie fuel and stores on board which may add to the financial loss if the vessel was completely destroyed. As this amount was only paid in the event of a total loss the premium rate was quite low, total losses being much less likely than partial losses.
In the past owners and brokers used this to insure as much of the total value as possible on an increased value policy at the lower rate whilst the remainder of the value was insured at the higher rate. Most partial loss claims came well within this lower hull value. Insurers wary of this now insist that only a certain percentage of the vessel’s value can be insured on an increased value basis – usually 15 to 25 %.
Protection and Indemnity (P&I)
A P&I Club is usually a ‘mutual’ organisation which covers shipowners' liabilities. Traditionally three quarters of the shipowner’s liability for damage to another vessel following a collision was covered by the hull insurance policy.
The remaining quarter was covered by the ship owners themselves who literally ‘clubbed’ together to form ‘mutual protection’ associations. Just like the original insurance ‘mutuals’, the ship owners all contributed a certain amount to pay for the remaining quarter of the collision (running down) claims of the members.
As the hull insurance only covers actual damage to another vessel and not fixed or floating objects such as harbour installations then this too was added to the cover. Personal injury to the crew is also not covered by the hull policy and so this too had to be included in what became known as protection and indemnity.
As the Club covers many different aspects of an owner’s laibilties (collision damage, crew liabilities, pollution) this is an efficient way of insuring liabilities of superyacht owners.
P&I clubs now also cover the full amount of the ship owner’s collision liability (4/4). The policies that we arrange have this arrangement.
The premium or ‘call’ is calculated on the basis of the vessel’s Gross Registered Tonnage and is known as the Estimated Tonnage Contribution (ETC). The bigger the vessel the more it contributes to the pool of money available to pay claims.
Third Party Liability
P&I Club Entry is generally unsuitable for covering the liabilities of smaller private yachts as it was originally intended for commercial or larger vessels. A Yacht Third Party Liability Insurance policy may be more suitable for many yachts up to a certain size. This covers the owner’s legal liabilities for damage to other vessels, injury to persons other than the insured or his employees, damage to fixed objects such as marina structures and pollution.
Cover can be extended to cover liabilities to charter guests.
War, Confiscation and Strikes
Under the hull and machinery policy war risks are excluded as is common to all marine policies. This can be covered under a separate policy which effectively covers war and related risks. This kind of policy is usually subject to a list of excluded areas (those areas where there are heightened activities related to political, civil and military unrest).
Tenders Hull and Third Party Liability
The yacht’s tenders are normally covered under the policy for the hull and machinery. This can also include additional watercraft and toys such as kayaks and windsurfers. If any of the tenders are to be used independently of the vessel it is also possible to cover them under an individual policy as vessels in their own right.
Personal Accident
This policy provides a capital benefit in the event of an accident on board the yacht which results in death or some kind of permanent injury for example the loss of sight. The injury must be permanent, not, for example a broken arm from which a recovery eventually occurs.
Crew Accident
This policy provides similar benefits to that of the personal accident policy with the main difference being that it is specifically for paid crew. The Crew Accident policy offers a set scale of payments awarded on the basis of the degree of disability experienced following personal injury. It can also provide a daily benefit for the duration of medical treatment and a daily hospital allowance during in-patient treatment. A fixed benefit is also payable on death of a crew member.
Crew Medical Expenses
This policy covers paid crew for emergency medical treatment during the period of their employment. It covers them whilst working on board the vessel as well as when they are not on board or staying off the boat. This is not a private health care policy as it does not cover routine treatments and check-ups. If such benefits are required for the crew then we will need to make separate arrangements.
Employers' Liability
Liability towards paid crew falls under the category of the liability of an employer to his employees.
The main section of the policy covers claims for legal liability attributable to the employer's negligence. The level of indemnity is in line with current UK employment legislation. It also insures your liability under the Merchant Shipping Act, for example, for the medical expenses of paid crew. The benefits under this section, however, are limited and we would advise you to take out specific Medical Expenses and Personal Accident insurances to ensure that you are adequately covered.
Please note that Employers’ Liability is mandatory for British flagged vessels sailing in British waters or employing crew who are normally resident in the UK.
If your vessel is not UK registered, we would nevertheless advise you to consider insuring your legal liabilities to crew. If you are uncertain of your legal liability to paid crew, we recommend that you take appropriate local legal advice.
Can fine arts, carpets, rugs and personal effects be covered?
Personal effects can be covered as standard subject to maximum values. You will need to specify a value to be covered and list any individual items over a certain amount. Fine Arts can be insured subject to the addition of a separate clause which applies to items which are valued much higher than their intrinsic cost. Full details and possibly valuations will need to be provided.
Does the insurance cover the vessel when she is used for charter?
The insurance can be extended to include use of the vessel for charter provided the purpose of the charter is private and pleasure and the licensed captain is on board at all times. Please remember to inform us if you require this extension when discussing your individual insurance details with Carter Chase.
Is there any cover for losses resulting from terrorism or acts of war?
Damage to the vessel arising from war and related perils is excluded under the hull and machinery policy. This can be covered under a separate policy which covers war risks subject to a list of excluded areas.
What qualifications does the Captain have to hold?
Insurers of the vessel are not as concerned with qualifications of the Captain as they are with their previous experience in the operation of similar sized vessels. A full CV would need to be submitted with the application for insurance. Of course this does not affect the requirements of the country of registration with regard to the manning of the vessel.
How do I get a quotation?
The insurance of a valuable asset such as a superyacht requires utmost care and expertise. Please contact our dedicated team who will be pleased to discuss your requirements and obtain the information necessary for our underwriters to provide an individual illustration. We would be delighted to answer any questions that you may have regarding the yacht hull and associated insurances.
For further information, please either telephone 0207 060 3370 or email our team directly on yachts@carterchase.com
When the time comes for claims adjustment – particularly with claims involving complex circumstances – Carter Chase will be there to offer expertise and an international network of shipyards, surveyors and suppliers to help you.
You can rest assured that whatever happens to you and your yacht, wherever you may be – you can rely on us to assist you.
We have formulated personalised superyacht insurance concepts for you, taking into account such factors as:
Classification
Registration/flag
Yacht management
Paid crew
In addition, we have developed specific insurance solutions to cover the risks associated with over-the-side activities and water sports that are not available anywhere else on the market.
Frequently Asked Questions
What is a Superyacht?
A superyacht is generally considered to be a large luxury yacht of about a hundred feet or more in length and which employs a number of permanent crew in addition to the captain. Sums insured may range from one million sterling upwards.
What kind of insurances are recommended for Superyachts?
Hull and Machinery
Hull Insurance covers damage to the yacht or its total loss resulting from an insured peril. Yacht hull insurance normally covers the hull, machinery, rigging, navigational equipment and tender and outboard.
Most ship hull policies are based on conditions contained in the so called Institute Hull Clauses developed over the last two centuries. When private yachting began these clauses were also used as the basis for insuring yachts. Even now many policies are based on these clauses though some companies including Carter Chase have developed polices which are more suitable for the insurance of private yachts and also more easily understood by those of us who are not marine lawyers.
We can provide cover for your vessel based on a choice of policy wordings and conditions available in the market as well as the unique Carter Chase Yacht Hull Clauses.
Increased Value
An increased value policy is commonly used to insure part of the value of a superyacht as a way of keeping the premium down without affecting the cover. For those interested in the history and operation of this type of insurance, read on!
The sum insured for larger yachts and commercial ships is usually split into two parts – hull and increased value. Originally the increased value was an amount in excess of the basic hull value to allow for any increase in the market value of the vessel (this varied considerably during the period of the insurance and the owner may have found himself at a disadvantage if the vessel was lost during a period of market upturn and the insured value did not cover the cost of a replacement) and also the disbursements ie fuel and stores on board which may add to the financial loss if the vessel was completely destroyed. As this amount was only paid in the event of a total loss the premium rate was quite low, total losses being much less likely than partial losses.
In the past owners and brokers used this to insure as much of the total value as possible on an increased value policy at the lower rate whilst the remainder of the value was insured at the higher rate. Most partial loss claims came well within this lower hull value. Insurers wary of this now insist that only a certain percentage of the vessel’s value can be insured on an increased value basis – usually 15 to 25 %.
Protection and Indemnity (P&I)
A P&I Club is usually a ‘mutual’ organisation which covers shipowners' liabilities. Traditionally three quarters of the shipowner’s liability for damage to another vessel following a collision was covered by the hull insurance policy.
The remaining quarter was covered by the ship owners themselves who literally ‘clubbed’ together to form ‘mutual protection’ associations. Just like the original insurance ‘mutuals’, the ship owners all contributed a certain amount to pay for the remaining quarter of the collision (running down) claims of the members.
As the hull insurance only covers actual damage to another vessel and not fixed or floating objects such as harbour installations then this too was added to the cover. Personal injury to the crew is also not covered by the hull policy and so this too had to be included in what became known as protection and indemnity.
As the Club covers many different aspects of an owner’s laibilties (collision damage, crew liabilities, pollution) this is an efficient way of insuring liabilities of superyacht owners.
P&I clubs now also cover the full amount of the ship owner’s collision liability (4/4). The policies that we arrange have this arrangement.
The premium or ‘call’ is calculated on the basis of the vessel’s Gross Registered Tonnage and is known as the Estimated Tonnage Contribution (ETC). The bigger the vessel the more it contributes to the pool of money available to pay claims.
Third Party Liability
P&I Club Entry is generally unsuitable for covering the liabilities of smaller private yachts as it was originally intended for commercial or larger vessels. A Yacht Third Party Liability Insurance policy may be more suitable for many yachts up to a certain size. This covers the owner’s legal liabilities for damage to other vessels, injury to persons other than the insured or his employees, damage to fixed objects such as marina structures and pollution.
Cover can be extended to cover liabilities to charter guests.
War, Confiscation and Strikes
Under the hull and machinery policy war risks are excluded as is common to all marine policies. This can be covered under a separate policy which effectively covers war and related risks. This kind of policy is usually subject to a list of excluded areas (those areas where there are heightened activities related to political, civil and military unrest).
Tenders Hull and Third Party Liability
The yacht’s tenders are normally covered under the policy for the hull and machinery. This can also include additional watercraft and toys such as kayaks and windsurfers. If any of the tenders are to be used independently of the vessel it is also possible to cover them under an individual policy as vessels in their own right.
Personal Accident
This policy provides a capital benefit in the event of an accident on board the yacht which results in death or some kind of permanent injury for example the loss of sight. The injury must be permanent, not, for example a broken arm from which a recovery eventually occurs.
Crew Accident
This policy provides similar benefits to that of the personal accident policy with the main difference being that it is specifically for paid crew. The Crew Accident policy offers a set scale of payments awarded on the basis of the degree of disability experienced following personal injury. It can also provide a daily benefit for the duration of medical treatment and a daily hospital allowance during in-patient treatment. A fixed benefit is also payable on death of a crew member.
Crew Medical Expenses
This policy covers paid crew for emergency medical treatment during the period of their employment. It covers them whilst working on board the vessel as well as when they are not on board or staying off the boat. This is not a private health care policy as it does not cover routine treatments and check-ups. If such benefits are required for the crew then we will need to make separate arrangements.
Employers' Liability
Liability towards paid crew falls under the category of the liability of an employer to his employees.
The main section of the policy covers claims for legal liability attributable to the employer's negligence. The level of indemnity is in line with current UK employment legislation. It also insures your liability under the Merchant Shipping Act, for example, for the medical expenses of paid crew. The benefits under this section, however, are limited and we would advise you to take out specific Medical Expenses and Personal Accident insurances to ensure that you are adequately covered.
Please note that Employers’ Liability is mandatory for British flagged vessels sailing in British waters or employing crew who are normally resident in the UK.
If your vessel is not UK registered, we would nevertheless advise you to consider insuring your legal liabilities to crew. If you are uncertain of your legal liability to paid crew, we recommend that you take appropriate local legal advice.
Can fine arts, carpets, rugs and personal effects be covered?
Personal effects can be covered as standard subject to maximum values. You will need to specify a value to be covered and list any individual items over a certain amount. Fine Arts can be insured subject to the addition of a separate clause which applies to items which are valued much higher than their intrinsic cost. Full details and possibly valuations will need to be provided.
Does the insurance cover the vessel when she is used for charter?
The insurance can be extended to include use of the vessel for charter provided the purpose of the charter is private and pleasure and the licensed captain is on board at all times. Please remember to inform us if you require this extension when discussing your individual insurance details with Carter Chase.
Is there any cover for losses resulting from terrorism or acts of war?
Damage to the vessel arising from war and related perils is excluded under the hull and machinery policy. This can be covered under a separate policy which covers war risks subject to a list of excluded areas.
What qualifications does the Captain have to hold?
Insurers of the vessel are not as concerned with qualifications of the Captain as they are with their previous experience in the operation of similar sized vessels. A full CV would need to be submitted with the application for insurance. Of course this does not affect the requirements of the country of registration with regard to the manning of the vessel.
How do I get a quotation?
The insurance of a valuable asset such as a superyacht requires utmost care and expertise. Please contact our dedicated team who will be pleased to discuss your requirements and obtain the information necessary for our underwriters to provide an individual illustration. We would be delighted to answer any questions that you may have regarding the yacht hull and associated insurances.
For further information, please either telephone 0207 060 3370 or email our team directly on yachts@carterchase.com
