Camper & Nicholsons impart their insurance advice

Camper & Nicholsons
15th October 2019

Insurance is a complicated business, and here at Camper & Nicholsons we want to take the stress out of insuring your precious asset, whether a yacht be privately operated or for charter. 
Four years ago, we added yacht insurance to our world-renowned portfolio of services that we can offer to our prestigious existing clients. Here, we have put together a quick guide to the most frequently asked questions when it comes to superyacht insurance policies. 
 

• As with every service we only deliver the best. All of the policies we can offer you access to are procured by primary A-rated insurers and are underwritten through an exclusive facility managed by our partner company, OMAC.

• Each policy contains a dedicated procedure about how to make a claim which we guarantee to be easy and hassle free. No complicated claim forms and complex internet platforms, instead a dedicated officer is available for each type of claim making the process simple via our 24/7 hotline.

• Policies can be taken out as soon as the boat is deemed operational and can be amended easily as the boat goes from shipyard, to sail, to refit, to charter, and the policy can be endorsed to take note of the yacht’s different movements and status.

• We offer privileged access to comprehensive insurance coverage for all the necessary areas, ensuring that you and your vessel are completely protected: 

Hull and Machinery (H&M), Protection and Indemnity (P&I), Crew Welfare, Charter Cancellation for charter guests (akin to travel insurance), Charterer’s Liability and Loss of Hire for owners to protect against potential loss of income. Policies are offered at various investment levels, however to ensure smooth entry to marinas, shipyards, European waters and to help you retain the best crew, we recommend the highest level of cover.

• H&M is a complex area of coverage, as it depends on various applicable conditions (American yacht clauses, Institute yacht clauses, Norwegian plan).
  Often, there is a list of named perils (Institute yacht clauses) or a list of exclusions to consider even with an All Risks cover (American or Norwegian), so a one-to-one consultation with our trained team to discuss your needs is highly recommended.

• P&I is there to protect any actions brought against the owner or operator in relation to occurrences such as someone, i.e. crew, guest or owner, dying or incurring serious injury whilst on the boat. P&I also protects for Shipowners’ general liabilities such as collision, pollution and employer’s liabilities.

• Crew Welfare provides cover against accident and illness whilst crew are under employment and can be extended to guests, both paying and non-paying.

• As with all insurance policies there are some small exclusions to the cover offered, however these are limited to the normal wear and tear that you would expect from the use of the superyacht, and all consequential financial losses that arise out of any damage to said yacht.

• One of the most frequently asked questions is ‘who is covered?’ should damage be caused by an owner, their guests, charterers, crew or third parties such as contactors and even other boats. Camper & Nicholsons are happy to announce that all are covered. The only exception, and a very rare occurrence, is if the damage is an intentional act by the owner. 

• Camper & Nicholsons encourage adventure, and we know that our owners and their guests love to explore around the world, from the Med to the Caribbean, and to the far-flung delights of the Far East and Pacific. Camper & Nicholsons will always have an advisor on hand to reassess any of your policies in order to incorporate new clauses and protection should your cruising location change, for example, if you will be making an Atlantic crossing or heading into a known Windstorm area. However, if you simply alter your cruising area within Europe, your policy can remain as is.

• One thing that is crucially important is that, unless the insurers agree otherwise, and under special circumstances, the boat must be flagged, even temporarily, to be insured. Apart from certain protected jurisdictions (US excluding Delaware), UAE, China, Turkey and other minor flag areas, Camper & Nicholsons can directly write business in all flag states such as Malta, Red Ensign, Italy, Greece, Marshall islands etc.

• Camper & Nicholsons don’t just assist you to insure boats that are already in the water, we are also able to procure insurance solution to protect you whilst your boat is under construction. Should the build not be up to your rigorous standards, we are also able to advise regarding liability. The shipyard has a duty to deliver the boat as per the specifications and if this is not the case they are therefore liable. There are then two further things to be taken into consideration: fault in design/construction which is noted as physical damage and is covered under builder’s risk insurance, and the actual performance of the boat once delivered, which can be insured under a performance bond coverage.

• Camper & Nicholsons are able to offer access to insurance products for all of your precious valuables, such as artwork, which is covered up to EUR 30 000 when non-declared, and beyond that, subject to detailed inventory. All tenders and toys are insured to the same standard, although there are limits which may vary in respect of the value of the mother vessel. Guests’ personal items such as jewellery and cameras whilst they are onboard can also be protected.

• Mother nature can sometimes whip up a storm, and often in the most popular of charter, such as the Caribbean. However, Camper & Nicholsons are able to offer access to Named Windstorm Cover which is subject to a prior agreed storm plan by the Insurers and is always active, providing cover for damage incurred both in open water and in the marina.

• In light of the increase in cyber crime against superyachts, Camper & Nicholsons offers privileged access to comprehensive insurance for  covering any liabilities arising subsequent to the boat’s IT system being hacked by a cyber attack, such as cost and expenses.

For a bespoke quote or more in-depth advice, please contact one of our global advisors.