Superyacht finance—insurance issues
Produced in partnership with Ince and Co
Superyacht finance—insurance issues

The following Banking & Finance guidance note Produced in partnership with Ince and Co provides comprehensive and up to date legal information covering:

  • Superyacht finance—insurance issues
  • Introduction
  • The relevant legislation
  • Getting cover
  • Specific terms
  • Claims

Introduction

This Practice Note outlines some of the central features of English insurance law, their application to yachts in particular, and the changes following the entry into force of the Insurance Act 2015 (IA 2015). For more information on the key principles that govern any insurance contract, see Practice Note: General principles of insurance contract law. For more on marine insurance in relation to all types of vessel, see Practice Note: Marine insurance—general principles.

The relevant legislation

The Marine Insurance Act 1906 (MIA 1906) still applies to yachting insurance law questions, but this has been amended and supplemented by the Consumer Insurance (Disclosure and Representations) Act 2012 (CI(DR)A 2012) and the IA 2015. Smaller yachts/pleasure craft are typically owned by individuals and are likely to fall within the ambit of CI(DR)A 2012, which aims at protecting consumer insureds by replacing the duty of utmost good faith with an obligation to take 'reasonable care' not to misrepresent the risk. For superyachts owned by bodies corporate, which are not considered to be consumers by virtue of not being individuals, IA 2015 will apply.

Getting cover

Superyacht insurance is typically arranged either by the captain and/or owner and/or management company.

The Process

Yacht insurance is normally arranged through one or more brokers. This is mandatory if the insurance is being placed