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Everything You Need to Know About Superyacht Insurance

Superyacht Insurance

Buying a superyacht is an immense investment, as well as an enormous liability. Owning a superyacht is part of living the top luxurious lifestyle. It is an asset that faces an array of risks,  one that can cost millions. Therefore, taking all necessary precautionary measures to protect the investment is essential. You want to make sure you have the best insurance policy available for your particular superyacht.

With so many insurance policies available, choosing the right one can be a daunting task. There are numerous different things to consider. This includes coverage limits, superyacht insurance costs, additional coverage options, policy durations, and so much more. At OceanShield, we specialise in finding the right insurance policy for you.

Comprehensive insurance coverage takes everything into account. The yachts specific condition and history as well as considering all current risks and weighing them in. An insurance is not necessarily better when it is cheaper, but when it has more coverage. Sometimes this can be achieved at the same price, and others it requires a higher premium offering a better protection. Cheaper is something that can result in a mistake costing millions, hence it is not always what actually protects the investment. Businessman Paolo Scudieri lost his $24mil investment as his superyacht was destroyed by fire only weeks after being delivered. The cause of the fire on the Aria SF Superyacht is still unknown. Fires have increased as a risk for superyachts over the last few months and it is paramount that they are covered in the insurance policy.

Similarly, a sharp increase in vandalism against Superyachts was noted as climate activists are targeting these luxurious vessels, like the one of Nancy Walton Laurie, billionaire heiress of Walmart. Environmental activists spray-painted her superyacht in Ibiza. Vandalism can also be insured, it is very important that an experienced broker revises all insurance policies to make sure this is included.

In this article, we’ll focus on understanding superyacht coverage, look at some recent incidents, see what additional coverage options are available, and more.

Understanding Superyacht Insurance

Yacht insurance solutions of two main policy sections: Hull and P&I. Hull insurance is basically an all-risk direct damage coverage based on a predefined amount decided when the policy is being written. Protection and Indemnity (P&I) is an insurance coverage protecting costs of accidental harm. These two are the absolute basic insurance needs and a must. The differences lie in the fine print and the uniqueness of each vessel, which is why we analyse every Suepryacht and situation meticulously.

It’s worth mentioning here that this includes harm or damages caused to the people on board, the environment, and the property of others. When deciding on coverage options, policy owners can choose between an actual cash value or an agreed-value policy. However, it’s important for you to know that the payout of the former could be less.

This is where OceanShield revises the best possible coverage option for each individual superyacht. We take the time to revise the current situation and analyse the highest coverage at the most competitive premium from all insurance companies.

damaged yacht

Recent Superyacht Incidents You Need To Know

Getting premium yacht coverage is essential as it helps you ensure protection against unexpected incidents. Thinking that such incidents are uncommon is a misconception that most people have.

However, such incidents occur more frequently than one might think. Some of the worst superyacht incidents, justifying the need for having the best superyacht insurance, are mentioned below.

Le St-James Goes Up In Flames
Le St-James was a 25.07-meter superyacht that sailed at a top speed of 44 knots and was capable of accommodating up to 6 guests. This superyacht caught flames back in February 2023. Media reports have stated that fire had initially erupted in the yacht’s cockpit and that no injuries were reported.

This took place in Hungary and saw nearly 20 firefighters alongside 4 fire engines coming to the rescue. The rescue team did manage to put the fire out in a couple of hours. However, reports claim that the yacht is in an unsalvageable condition. Such an incident shows that it’s essential for one to have the best superyacht insurance for their vessel.

Sunseeker Nakoa Sinks After Grounding
The Nakoa was a 28.13-meter superyacht that had a top speed of 32 knots and could accommodate up to 8 guests. Last year, the yacht broke free from her mooring and ended up grounded on the shoreline. The incident caused damage to more than 100 coral colonies and more than 1,500 square feet of live rock.

Media reports have mentioned that a fine of $117,472 was inflicted in lieu of the damages the yacht had caused. Out of this amount, $26,700 was for damaging coral, $33,520 for damaging the live rocks, $56,851 for investigation costs, and $400 for violations. This shows how essential it is for one to have premium yacht coverage to protect the investment on top of the regular and very well known Hull and P&I.

Hot Pursuit Damaged Amid On-Board Blaze
The Hot Pursuit, a nearly 27-meter-long yacht, was severely damaged in early 2023 due to on-board fire. The vessel, being dubbed five years old, was saved by the rescue team, who had managed to contain the fire on the upper deck. Despite their efforts, certain elements of the superyacht were either burnt or melted.

These parts include the gunwales and the hardtop. Media reports indicated that the fire may have been caused by electrical problems. No major injuries were reported; one person, however, was treated at the scene for smoke inhalation. This is another incident that goes to show how necessary premium yacht coverage is.

Do Superyacht Insurance Policies Cover Yard Work?
Yachts undergo routine maintenance or scheduled refits, usually requiring them to be taken to shipyards for extended yard work. There are plenty of risks associated with these maintenance activities, given that they may involve welding, workers moving around, and equipment being removed and set up on the yacht.

It’s essential for you to understand that some luxury yacht coverage options may not accommodate damage to your vessel sustained during yard work. Whether or not such coverage is part of the yacht insurance solutions you’re browsing is something that may vary among providers.

That said, it’s essential to communicate such requirements to the superyacht insurance brokers. In addition, you should also thoroughly review your insurance policy and understand all the terms and conditions that may apply to coverage for such damages. Or consult with us so we can review it for you and make our recommendations based on our extensive experience.

Additional Coverage Options For Superyachts

Securing insurance for your yacht is necessary, but understanding coverage options can help you ensure comprehensive yacht risk management. At OceanShield, we provide you with a wide variety of additional coverage options and take pride in ensuring that you get the best superyacht insurance possible. Two of the most sought-after additional coverage options include:

  • War Risk Coverage – Even the most thorough hull insurance policies may not cover every possible situation, particularly those related to political circumstances. For instance, war risk coverage, this additional policy covers damages and losses resulting from war, civil war, or events resembling war.
  • Submersible Watercraft Coverage – As you sail around the open seas on a superyacht, it’s possible that you have a submersible vessel on it, too. This type of additional coverage helps you ensure protection for such vessels in the event that damages to these yachts transcend to these vessels as well.

Why Choose OceanShield for Your Superyacht Insurance?

Along with our chosen partners, we have a wealth of experience, with a combined experience of over 100 years in the marine industry, assuring you of top-notch superyacht insurance coverage. You can rely on us for tailored premium yacht coverage solutions. Here’s what we have in store for you:

  • Hull and Machinery Coverage – Comprehensive All-Risk coverage, extending up to $500 million.
  • Protection & Indemnity Liability Insurance – Extensive coverage, offering protection of up to $1 billion.
  • Crew Medical and Personal Accident Coverage – Ensuring the protection and safety of your crew.
  • Fine Art and Special Valuable Insurance – Providing protection for valuable items stored on your vessel.

Bottom Line

A superyacht is a major investment, and ensuring protection against all forms of damages and liabilities is essential. As specialists in superyacht insurance, we’ll carefully assess the specifics of your superyacht. We’ll inquire about your coverage requirements, walk you through different insurance options, and provide you with competitive quotes.

So before you head back onto the open water, ensure you have picked one of the best-tailored yacht insurance plans. Contact us today and learn more!

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