January 12, 2023
If you have a yacht or are planning on getting one, you will need insurance for your boat. There are serious risks associated with owning and using any vessel, and losses could quickly run into the six figures. Protecting your boat and crew from these risks is vital, and insurance is a great way to cover the financial consequences if something goes wrong.
The Normandy Insurance yacht insurance includes liability coverage for damage to personal property, tenders, trailers, non-emergency towing, uninsured boaters, medical payments. Toys such as jet skis may also be added.
Generally, there are two parts to yacht insurance: hull insurance and protection and indemnity (P&I). Hull insurance is an all-risk, direct damage coverage that includes an amount of coverage settled upon when the policy is written. Hull insurance also includes replacement costs on partial losses. P&I includes coverage for crew and uninsured guests.
There are a few factors you should take into account when deciding which insurance plan is right for your vessel and if it will qualify for specific insurance plans.
This will help you decide if you qualify for a policy, but you should use these to take your exposures into account. Consider the risks associated with using your yacht and if your insurance policy will cover them well.
When deciding what insurance to opt for, it's important to remember that yachts are usually granted more broad and specialized insurance because they're bigger and have more risks.
At Normandy, we offer yacht insurance for vessels valued up to $5M, and we cover boats whether they are used privately, or as a charter. Having both options can be useful when purchasing a yacht, as you could consider renting out your boat to offset costs and keep the boat in working condition when you are not using it.
Any vessel over five years old should be surveyed before it can be insured. This is also standard practice when purchasing a boat, so getting insurance as part of the purchase process will kill two birds with one stone.
Normandy Insurance Company is a workers’ compensation carrier writing in 17 states. Normandy Insurance Services offers yacht insurance, general liability, property, EPLI, and other lines through our wholesale division which is licensed nationwide.