Yacht insurance typically covers you, your yacht and your passengers — depending on the policy and coverage selected.
Hull Coverage : Hull coverage is a main component of watercraft insurance that covers the owner against covered losses resulting from damage to the watercraft.
Boating Equipment : It’s important to know how your policy separates equipment used for yacht operations. It may be included in the hull limit or it may be a percentage of the hull value. This will depend on the insurance company providing the coverage.
Watercraft Liability (sometimes listed as Protection & Indemnity) is 3rd party Bodily Injury (BI) and Property Damage (PD) liability coverage that comes into play when the insured vessel is involved in a boating accident during which a covered operator is at fault.
BI coverage pays for medical costs incurred from bodily injury, lost wages, sickness, or death related to the accident. This coverage also pays for legal fees and recompense for pain and suffering that may result from the accident. BI responds if you’re found negligent for bodily injury to others.
PD coverage pays for damage to other boats, property and structures. PD responds if you’re found negligent for damage to property of others.
Crew Coverage : The Jones Act is a federal statute that provides a means for crew members injured as a result of negligence to recover for damages. Take care of those who work for you as captain or crew. Should injury occur during their duties, are they covered? Adding crew coverage also protects you as the vessel owner if they bring forward a lawsuit for a crew claim. This coverage is usually a separate endorsement to your yacht policy and an additional premium is generally charged based on the total number of crew members. Always refrain from hiring crew unless this important coverage is purchased.
Towing/Labor : Here, policy limit is the main focus. Some policies will have an occurrence limit subject to an annual aggregate limit. Is there a maximum limit if you are more than ‘x’ miles offshore? Is towing handled like a claim where you’re reimbursed, or is the insurance company billed on the backend of the transaction?
Uninsured Boaters : Uninsured boater coverage is bodily injury coverage for a covered person if your covered vessel is struck by an uninsured boater.