What Insurance Do You Need for a Yacht?

January 12, 2023


Rebecca Batisto
What Insurance Do You Need for a Yacht?

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. 

What Does Yacht Insurance Cover?

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. 

What to Look For in a Plan

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.

  • Size
  • Speed
  • Age
  • Value
  • Location
  • Crew and guests
  • Usage

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. 

Yacht Insurance vs. Pleasure Boat Insurance

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 has evolved since 2006, becoming a top choice for agents in 22 states. Originally focused on workers' compensation, Normandy now underwrites general liability, commercial property, cyber, and yacht insurance. Preferred by independent agents for offering innovative and cost-effective coverage solutions with an emphasis on customer service.

Learn more about yacht insurance on our website now or get in touch by email: info@normandyins.com or call us: 1-866-688-6442

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