What Does Your Yacht Insurance Cover?
Are you thinking of rewarding yourself with a beautiful yacht? One thing you should account for is insurance for this marine vessel. Typically, insurers describe a yacht as a marine vessel under 27 feet intended for leisure activities. Like any other vehicle, there are risks your yacht can harm other people and property. This is more so if you moor it in a rental Marina. Yacht insurance protects you against liability for third-party personal injuries and property damage. It also shields the vessel and its contents against damage. Where are these protections defined?
1. Hull Insurance
The hull is the main outer body of your yacht. A yacht insurance policy protects it against damage. This is also called physical damage coverage. The policy covers direct physical loss or damage to the hull. It does not cover hull damage due to wear and tear or natural disasters. You can also take an add-on replacement cost coverage that covers partial loss for components such as sails, outboards, and batteries.
2. Protection and Indemnity
This component of yacht insurance protects you from liability claims arising from crew member injuries on board. It also covers damages to third-party properties caused by a collision between two vessels with you as master or owner of one of them.
You will be required to pay the full insurance costs when the policy is written. However, the insured amount is paid in full when you are eligible for compensation.
3. Longshore and Harbor Workers' Coverage
The federal Longshore and Harbor Workers' Compensation Act defines liability claims by people injured when working on your yacht. This could include cleaning, loading, unloading, repairing, and maintaining your yacht while it is in the navigable waters of the US and its territories.
The Jones Act protects crew members that are citizens of the US or its territories while in the service of a vessel. This law allows injured crew members or relatives of killed crew members to sue a vessel owner. This yacht insurance policy protects you against these lawsuits.
4. Medical Insurance
Medical insurance is usually an add-on package offered by marine insurers. It covers medical costs incurred by your crew members if they are injured in a yacht accident. These costs include hospital bills, surgery, and rehabilitation services.
Are you worried about your new yacht's exposure to liability? Talk to a local insurance provider, such as Blue Water Yacht Insurance, Inc., about yacht insurance cover suitable for your seafaring ways.