Your yacht is your pride and joy! You’ve spent years working to make it what it is today and want to keep it in the best shape possible. But how do you do that?
The answer is simple: protect yourself against any potential damage or loss to your yacht. The best way to do that is with an insurance policy.
The yacht club insurance that is right for you will depend on several factors, including how often your yacht will be used and how much it costs. Many different types of insurance can protect yachts. They include:
Property Damage Liability Coverage
This type of insurance will reimburse you or your business for damage to someone else’s property caused by your yacht. For example, if a dock or pier collapses under the weight of your vessel, the policy will cover any costs associated with rebuilding. In addition, this type of coverage will also pay for damage to other boats or property that your boat’s actions have damaged.
For example, if your yacht accidentally hits another vessel and causes significant damage, the insurance company will pay for repairs to both vessels.
A standard homeowner’s policy usually does not include property damage liability coverage. This coverage typically needs to be purchased separately through an insurance company specializing in marine insurance policies. These policies may also offer additional coverage options such as medical payments coverage and personal effects coverage (which covers items lost overboard).
Hull Insurance is the most common type of insurance for yachts. Protects against physical damage to your boat. Consider other types of coverage, such as liability insurance, which will cover you if someone is injured on your boat or if you accidentally damage someone else’s property.
Yacht owners can buy hull insurance from several different types of providers, including:
Insurance brokers – Brokers work with multiple providers and can help you find the best deal on hull insurance. The downside is that they may not be able to offer competitive pricing because they don’t have access to all the different companies’ rates simultaneously.
Boat clubs – Boat clubs often provide their members with access to discounted yacht policies through a single provider. This means that members have fewer options when it comes time to renew their policy, but it can save them money in the long run.
Insurance companies – Some companies specialize in marine coverage and only sell boat policies through their agents or websites. If you want to choose your provider, this is a good option.
Bodily Injury Coverage
Bodily injury coverage is a type of yacht club insurance that protects the yacht owner against losses from injuries sustained by anyone, including passengers. It covers medical expenses, lost wages, and pain and suffering. If a passenger on a yacht sustains an injury while on board, the yacht owner will have to pay for all expenses resulting from that injury. Bodily injury coverage can be purchased as part of a comprehensive or stand-alone insurance policy.
The coverage limit for this type of policy varies depending on where you live, but it is typically between $500,000 and $1 million per person injured or killed as a result of an accident on your yacht. The higher limit would apply if several people were wounded at once or if one person was severely injured.
Bodily injury coverage also includes medical payments — which pay for medical costs for anyone who suffers an accidental injury while on board your vessel — up to the same limit as above.