Is it time to review your approach to yacht insurance?

As the Mediterranean cruising season draws to a close, the Monaco Yacht Show offers more than a showcase of the world’s finest vessels. It is also a natural point in the calendar for owners, family offices and yacht managers to pause and reflect.

With winter yard periods approaching and plans taking shape for the season ahead, now is the ideal time to review insurance arrangements, confirm that cover is fit for purpose, and address any gaps that may have emerged over the summer.

Yard periods

During yard periods for refit and repair, standard superyacht insurance may include clauses limiting cover. Owners should check that the shipyard and all contractors have liability insurance, and that policy wording does not cap liability at the value of the works rather than the full insured value of the yacht.

Many yards, particularly outside the EU, operate with legal caps far below yacht value. These limits can reduce recoveries after incidents such as fire, structural failure or environmental damage. Insurers may also require advance notice or approval before major works or extended yard stays.

Some contracts include clauses that stop you from reclaiming losses after an incident. Allow advisers time to review all agreements before signing and use the opportunity to ensure your policy and the yard’s insurance are aligned.

Cruising

As international travel rules evolve, insurance terms can change depending on cruising region, vessel usage, and even the time of year. As highlighted in The Superyacht Report, recent incidents in the Mediterranean from severe weather damage to collisions, underline the importance of understanding geographic risks and policy exclusions.

Ensure the policy covers planned itineraries, including high-risk areas and activities such as water sports or helicopter operations. Shifting weather patterns and geopolitical changes may affect safe cruising windows and create new restricted zones.

Navigation warranties, crew presence rules and liability cover can vary between jurisdictions. Keep the broker or adviser informed of itinerary changes to avoid disputes if a claim needs to be made.

Crew welfare policies

Although not mandatory in all cases, we encourage owners to provide crew welfare and personal accident cover. While the Maritime Labour Convention (MLC 2006) only mandates this for vessels flagged in ratifying countries, yachts calling at such ports may still face enforcement.

Health, death and disability benefit plans help reduce liability and demonstrate a duty of care. They also improve crew morale and retention and support the owner’s reputation as a responsible employer.

Yacht shows

With Monaco Yacht Show around the corner, owners and captains should be aware of event-specific risks: vessel handling in tight quarters, guest movements, uninvited visitors, temporary moorings and hospitality activities.

If high-value items such as art, jewellery or rare tenders will be on board, make sure they are separately covered. Check that any third-party contractors have appropriate insurance and that it aligns with yacht's own policy.

If the yacht is being promoted for charter, confirm the policy covers this activity. Adjusting insurance ahead of the event is the best way to protect the yacht, crew and owner’s reputation.

Our team will be on the ground at the Monaco Yacht Show from 24 – 27 September. Reach out to Giles or Ben to set up a meeting regarding insurance or crew management services.

We are not a regulated provider of insurance services but undertake the placement of insurance as part of our duties when acting in the capacity as directors of a yacht owning company or as the legal employer of crew serving on yachts. Our in-house insurance manager can help ensure owners have comprehensive and cost-effective insurance in place.

Please note that this article is intended to provide a general overview of the matters to which it relates. It is not intended as professional advice and should not be relied upon as such. Any engagement in respect of our professional services is subject to our standard terms and conditions of business and the provision of all necessary due diligence. © Praxis 2025