The guide to Superyacht law - Fourth edition

WHAT INSURANCES ARE REQUIRED? Each superyacht and the requirements of its owner are different and there is no one size fits all insurance solution. The extent of cover needed will depend on the size of the superyacht, where in the world it will be cruising, whether it will be used in racing, the number and nationality of its crew. As a general guide consideration should be had to the following types of cover: During construction The construction of a superyacht is a complex and costly project and care needs to be taken to ensure that the superyacht is adequately covered by insurance and the owner’s investment protected. • Builder’s risk insurance : Generally taken out by the shipyard (with the owners interest noted) and provides cover for loss of or damage to the superyacht during construction and until its final delivery to the owner • Owner’s interest insurance : This cover, which is not standard, is designed to pay out in circumstances where the shipyard’s policy does not. This could be for example, where the builders’ risk insurers covering the yard refuse to settle a claim for loss of or damage to the superyacht, due to some fault of the yard Whilst in service Once the superyacht has been delivered by the shipyard the risk in it passes to the owner. The onus is then on the owners and/or managers to ensure that their interests are adequately protected in the event of an accident. • Hull and Machinery (H&M) insurance : Covers the owner for physical loss of or damage to the superyacht and its machinery. It also generally covers any tenders and chase boats • Protection & Indemnity (P&I) insurance : Provides cover for legal liabilities including damage to other superyachts, damage to dock or harbour installations, wreck removal expenses, death or personal injuries, if relevant, and may also cover the use of helicopters on board the superyacht

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