Stay Afloat: How Yacht Insurance Safeguards Your Craft
Cruising on a yacht in the warm sunshine is likely to be on everyone’s bucket list. Especially if it takes in some sun-drenched Mediterranean islands like Malta. But if you set out on a leisurely cruise without adequate yacht insurance, you may come to regret it if there is an unexpected accident.
Boating on European waters has never been so popular. Estimates suggest that there are around 6 million boats that sail in Europe, with predictions that the luxury yacht market will be worth $14.58 billion by 2030.
With more people taking to the water, there is the possibility that something could happen to you or your yacht that could cost money if you’re not properly prepared.
Contents
What is yacht insurance?
Why is this insurance important?
Discover the two parts of yacht insurance: hull insurance and indemnity & protection.
Why choose GasanMamo for your insurance?
What is Yacht Insurance?
Yacht insurance is defined as a specific type of marine insurance designed to protect yachts and their owners. In addition, yacht insurance will be influenced by a number of factors, including the size and age of your boat.
The key difference between ordinary boat insurance and yacht insurance is that yachts tend to be bigger boats which may affect the level of insurance coverage. Boats are usually said to be craft which are under 26 feet in length, whereas yachts are over 26 feet long and are often used for recreational purposes.
You may notice that yacht insurance policies’ coverage breadth may be more comprehensive than normal boat insurance policies. For example, you could have the ability to include additional coverages, such as wreck removal or legal costs, depending on the precise policy you select for your yacht.
In short, yacht insurance is generally more specialised due to the fact that yachts are larger, more complex craft with the possibility of greater risk exposure as a result of size.
Why is this Insurance Important?
It’s highly unlikely that any yacht owner wouldn’t adequately insure their vessel. This is because yachts cost a significant amount to buy. Consequently, yacht insurance is essential for providing protection from a sudden incident or accident.
Here are 4 reasons why yacht insurance is a must:
When you begin to research insurance coverage, you’ll see that comprehensive policies provide wider cover than a standard boat insurance policy. For the most part, yacht insurance delivers a broader protection which could include liability cover, fuel spill liability, or legal defence costs.
In general terms, it can be said that yacht policies create more full-bodied liability protection, which provides owners with more advanced protection for captains, crew and passengers.
Buying a yacht is a substantial investment, one that many yacht owners hope will open up opportunities to cruise waterways and enjoy leisurely adventures.
Repairs to an expensive vessel are most probably going to be costly in themselves, so it makes sense to invest in proper protection which will help cover repairs or part replacement in the event of accidental damage or loss.
It won’t be a surprise to learn that any damage repair required for a yacht is potentially going to cost more than the same issues with a smaller boat. As yachts tend to be exposed to more risk due to their size and complexity, this could impact the type of insurance coverage that companies may offer.
The Two Parts of Yacht Insurance
Yacht insurance has two distinct parts.
Hull insurance is an all-risk insurance policy that directly covers prescribed damage to your yacht’s hull. This may cover accidental damage to machinery and equipment if specific in your policy. The amount is decided on policy completion and paid if there is a total loss. Typically, partial loss claims will be arranged on a replacement cost basis.
Protection and Indemnity (P&I) insurance is a comprehensive liability coverage that secures the owner’s legal exposure to third parties, such as yacht workers or longshoremen and any personal injury, loss of life or property damage that may take place. In addition, if a yacht owner is sued, P&I insurance can cover legal defence costs.
Why Choose GasanMamo for Your Insurance?
When you choose GasanMamo for your insurance, you’re buying into a sense of security and peace of mind.
GasanMamo insurance delivers all the usual yacht insurance features, but with so many more additional benefits. These include relevant sighting costs, emergency changes or legal costs as defined in our boat insurance policy. Discover more about GasanMamo on our recent blog ‘What makes us different to other boat insurance companies?‘
Begin your own search for the right plan in Malta by looking through our compelling benefits on our boat insurance page and contact our experienced team today.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
