What Is The Most Common Yacht Insurance Coverage?

Protecting your assets is beyond important, whether you have a small fishing boat or a luxurious yacht. You want to be sure that you are covered in the event of an accident, theft, or other unforeseeable circumstance.

Yacht insurance is designed to do just that – give you peace of mind while you are out on the open water. But what does it actually cover, and what are the most common coverages? Let’s take a look.

1. Collision


There are two types of collisions you need to be aware of when it comes to yacht insurance – hitting another vessel or something under the water surface.

If you are involved in a collision with another boat, it’s important to know that your yacht insurance will generally cover the damages to your vessel as well as any injuries that may have been sustained by you or your passengers. If the collision was determined to be your fault, then you will also be responsible for paying for the damages to the other vessel involved.

On the other hand, if you collide with something under the water surface – like a rock or reef – your yacht insurance will likely cover the cost of repairs to your hull. Again, if it is determined that the collision was due to your negligence, you may be on the hook for a deductible and/or increased premiums.

2. Theft

Just like your car, your yacht can be susceptible to theft. Whether it’s while docked at a marina or anchored offshore, there is always a risk that your vessel could be stolen.

If your yacht is stolen, your insurance policy will generally cover the cost of replacing it. This coverage is typically subject to a deductible, so be sure to read your policy carefully to understand how much you would need to pay out-of-pocket in the event of a theft.

3. Storm And Weather


Bad weather is inevitable, whether you are sailing in hurricane territory or just dealing with some rough waves. If your yacht is damaged in a storm, your insurance policy will likely cover the cost of repairs – minus any deductibles that may apply.

Be aware that some policies exclude damage caused by hurricanes, so if this is a concern in your sailing area, be sure to shop for a policy that specifically covers this type of event.

4. Passenger Liability

If you frequently have passengers onboard it is your responsibility to ensure everyone’s safety. If someone is injured while onboard your yacht, you could be held liable.

Most yacht insurance policies will include some form of passenger liability coverage, which will protect you financially if you are sued for injuries sustained by a passenger. This coverage is especially important if you charge for rides or charter your vessel for events.

5. Engine Breakdown


Just like any other vehicle, your yacht’s engine is susceptible to breakdowns and malfunctions. And just like with a car, albeit a very expensive one, these problems can be expensive to fix.

If your engine breaks down while you are out on the water, your insurance policy will likely cover the cost of repairs or replacement – minus any deductibles that may apply.

6. Crew Illness And Accident

If you have a crew onboard, their safety is your responsibility. In the event that a crew member becomes ill or is injured while working on your yacht, your insurance policy will likely cover their medical expenses.

In case you don’t carry a policy that covers crew illness and accident, you could be held liable for any medical bills incurred – which could quickly become very expensive and could frequently be abused by the crew and staff members according to velosinsurance.co.uk.

7. Shipwreck Removal


If your yacht sinks or runs aground, you will be responsible for removing it from its watery grave. This can be a very expensive undertaking, but fortunately, most yacht insurance policies will cover the cost of shipwreck removal.

Hopefully, it never gets to this point, but it’s good to know that you are covered if the worst should happen.

8. Reinstatement Value Cover

If your yacht is totaled in an accident or stolen, or whatever the case may be, your insurance policy will generally only pay out the actual value of the vessel at the time of the loss.

However, some policies offer what is called “reinstatement value cover.” This means that if your yacht is totaled, your insurer will pay to replace it with a new one – with a few deductibles here and there.

This type of coverage is typically only available on newer yachts, and it will usually cost a lot more than a policy with no such coverage, so it’s very important to gauge your needs and choose the right policy for you.

9. Piracy


Piracy is still a very real threat, especially in certain areas of the world.

Not only do yacht owners have a lot to worry about with the cost of maintenance and upkeep, storage during the off-season, and potential damage from storms or other accidents, but one of the most important things to protect against is piracy.

In recent years, there has been an increase in reports of piracy around the world, and this can be a major concern for yacht owners.

A piracy insurance policy can provide protection against loss or damage caused by pirates, as well as any legal liabilities that may arise. This type of coverage is vital for anyone who owns a yacht, and it is important to make sure that you are adequately protected.

10. Environmental Damage

If your yacht causes environmental damage, you could be held liable.

For example, if your vessel leaks oil or fuel into the water, you could be required to pay for the clean-up costs.

Most yacht insurance policies will include some form of environmental liability coverage, which will protect you financially in the event that you are held liable for environmental damage.


There are many different types of yacht insurance coverage, and the right policy for you will depend on a number of factors.

It is important to do your research and talk to an insurance agent to find the right policy for your needs