The guide to Superyacht law - Fourth edition

• Crewmedical and accident cover insurance : Provides cover for medical and repatriation expenses. The type of cover varies and what is required may depend on the superyacht’s flag and nationality of the crew • Increased value insurance : provides additional H&M cover for a lower premiumwhere the superyacht is totally lost or damaged beyond economical repair • War risk insurance : can be obtained in respect of physical damage to the superyacht and third party liabilities and provides cover for losses caused by acts of war, terrorism, capture, seizure and arrest that are otherwise excluded under standard H&M and P&I covers During repairs and refits Superyachts will invariably have to go into shipyards for servicing, repairs and refit works. Care must be taken to ascertain what policy will be triggered and in the event of loss or damage whilst the superyacht is in the yard. Do not simply assume that the owner’s H&M policy will respond (sometimes it will remain in force albeit subject to special conditions, occasionally, but very rarely it will be suspended during the period that the superyacht is out of water), or conversely that the yard’s superyacht repairer’s liability policy will pay out. • Superyacht Repairer’s Liability (SRL) insurance : Covers the shipyard in respect of legal liabilities incurred in respect of loss of or damage to superyachts in its custody, care and control, and in respect of death and personal injury to third parties • Waivers of subrogation : It is now common practice for builders undertaking warranty work at their facilities to seek to protect itself by asking the owners and its insurers for a “waiver of subrogation”. This is a clause which prevents the owner and its insurers from pursuing the yard in the event of a loss. Clauses like this remove the owner’s insurers right of recourse against the yard (should the owner’s policy pay out), such waivers must never be signed without insurers’ prior approval

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