OFFSHORE YACHT INSURANCE
There are a number of major differences between basic coverage and Offshore Yacht Insurance coverage policies but the most fundamental is the navigation limits in which the vessel can be operated. Most policies allow you to operate your vessel locally within a clearly defined geographic area, whereas offshore coverage allows offshore cruising sailors to travel across oceans and visit most any country anywhere in the world!
Each policy and the navigation limits therein are unique — customized to your own needs and cruising itinerary while avoiding dangerous areas or seasonal storms. Through our exclusive Lloyd's of London facility and custom policy wordings we provide quality and competitive coverage on vessels of almost any flag, with a seasoned ability to manage and service claims anywhere in the world. For more than 400 years, Lloyd's of London has developed the most extensive and dependable network of marine repair and service specialists in the world!
We can place insurance coverage for offshore Sailors in a variety of currencies including: Canadian Dollars (CAD), US Dollars (USD) or British Pounds Sterling (GBP). Typically we use the currency for the home country of the insured and vessels registry, or we use USD for those from other countries.
POLICY BASICS
Persons covered
Under the terms of our offshore policy, you may give any qualified individual, group or private organization permission to temporarily operate your vessel, including paid employees. This is intended to allow your vessel to be cared for and managed in your absence.
If you intend to let friends operate your yacht without your presence on-board and in-command, then you must advise us in advance of doing so. The persons to whom you intend to give control of the boat must be accepted by underwriters prior to them taking possession of the yacht. Let us know the full details on their yachting experience well in advance and we'll seek approval from underwriters.
Coverage under your policy does not include use by marinas, yacht clubs, repair facilities or other similar organizations that need their own insurance coverage for such purposes.
Activities not covered
Offshore coverage allows the use of your vessel for lawful, private pleasure purposes only. If you plan to use your sailing vessel for any racing, you must provide BC Yacht Insurance Brokers with full details when you apply for coverage. You must also outline a planned itinerary for the insurance year and the policy will be tailored to your plans and needs.
Our standard offshore policy does not include the use of your yacht for commercial purposes. Coverage is available for charters and other similar commercial operations but not under the terms of our standard policy wording. Arrangements must be made with underwriters prior to undertaking any such activities. An additional premium will apply.
WHAT YOUR COVER INCLUDES
Agreed Value for your Boat* (replacement cost coverage)
In most cases, our standard policy will pay for the full cost of repairing or replacing any damages to your boat, up to the current market Agreed Value stated on the policy, if it is damaged from an insured event. Coverage applies whether the vessel is on land, moored in a marina, at anchor, underway or at sea.
See the Coverage Notes in the sidebar.
Your policy also covers the vessel's auxiliary equipment including dinghies, outboards, sails or fishing tackle, whether it is on-board, or stored ashore at the time of loss. It also covers any reasonable costs incurred in protecting the vessel from a loss or further loss and for salvaging your vessel if it sinks or is washed ashore.
In any case, deductibles and the policy limits of coverage apply. Some limits and exclusions apply to all policies and you should always read your policy thoroughly then contact your BC Yacht Insurance Broker representative for clarification as required.
No depreciation on most losses is a significant benefit in BC Yacht Insurance Brokers' custom policy wordings underwritten by Lloyd's of London.
Collision Liability
If your boat collides with another, your insurance company will pay for the damage to the other vessel, compensation for the loss of use of the other vessel and the cost of salvage on a proportional basis depending on who caused the accident.
Personal Property
Your personal effects and those of your family, guests and volunteer (unpaid) crew are insured for the limits of coverage stated on the policy declarations but only while stored on your boat, provided you purchase this optional protection. Maximum Limits per item apply. This coverage does not include high-value portable items such as cameras, jewellery, cell phones, cash or traveller's cheques. Refer to your policy declarations and wordings for full details.
Transport or Shipping Insurance
If you wish to transport your vessel home or elsewhere by land, or by sea on a common carrier then we can arrange separate coverage, but not normally under this policy.
In advance of the shipment, we need to know a variety of details concerning the move to arrange the needed coverage. Our standard Offshore Insurance Policy does not include any coverage for such shipments. We can readily place this type of coverage, with other underwriters, for shipments almost anywhere in the world.
Liability to Third Parties
Your insurance coverage protects you against bodily injury or property damage to others which may arise from the use of your vessel whether it is ashore, moored, or at sea.
The damages and expenses payable include -
- The replacement or repair of any other vessel
- The loss or replace of goods or merchandise
- The replacement or repair of any harbour, dock or other fixed object, and
- The loss of life, personal injury, hospital, medical or funeral expenses arising from an accident onboard or involving to your vessel
Your policy also covers any legal costs that may accrue as a result (with prior approval of your insurance company).
The amount of this coverage is clearly stated on your policy. Some limits and exclusions apply and you should read your policy thoroughly then contact your BC Yacht Insurance Broker representative for clarification if required.
Uninsured Vessel Protection
The policy protects you and others covered by your policy against bodily injuries caused by others operating a vessel that does not have any liability insurance coverage. Your insurance company will cover the any legal judgement you win when the party at fault has no liability coverage for their vessel. The limits of coverage are stated on your policy declarations - generally $100,000.
Medical Payments
Typically your policy will pay up to $5,000 per person for medical or funeral expenses resulting from an accident on board or from an accident boarding or disembarking your vessel. There is usually a limit of $25,000 per accident no matter how may people are injured. This extension of coverage is not for legal liability, it is only for medical expenses as described. See your declarations page for the actual limits on your policy.
Propane Restrictions
Under the terms of this policy you are prohibited from installing any propane appliance on your vessel without the prior knowledge and approval of your insurance company. In addition, you must manually close the propane valve on any existing equipment when it is not in use.
More Information
Download an Application Form
Contact a BC Yacht Insurance Representative
