What is Yacht Insurance?
Yacht insurance is a luxury policy that provides protection and services at any time for the vessel and the valuables associated with the yacht. Much like car insurance, when an owner buys a yacht, third-party liability protection is mandatory.
The size of a yacht can range from about 10 meters up to 50 meters in length. Most yachts sizes fall in the middle. Any vessel over 50 meters is known as a -Superyachts. Owners can use yachts for either racing, travelling, charters or pleasure.
The protection is a must for such vessels in Hong Kong due to typhoons, the number of boats in the sea and unpredictable situations an owner may face. In addition, the insurance will repair or replace your yacht and also provide emergency towing.
Red Asia Insurance can also help tailor the insurance to insure boats and provide similar coverage.
What is covered?
Yacht insurance can cover a range of serves for the owner, such as:
- Yacht damage due to accidents
- Damage to Third-Party due to accidents
- Accidental Pollution
- Towing serves
- Damage or theft of valuables associated with the yacht (water sports equipment, fishing gear, etc)
The insurance will also provide expert contact to help service or repair the vessel. An expert yacht insurance provider will solve the issue within 48 hrs. Owners or companies can purchase employee compensation alongside when hiring employees to work on their charter services.
To learn more read our article about yacht insurance.
What should you know?
A few factors may affect the insurance premium and the cover they can provide for the yacht owner. These factors are:
- Purpose of the Yacht: The policyholder can use the yacht for various purposes such as racing, pleasure or long-distance travelling. . For example, when an owner/business rents out yacht(s) for charter, more people interacting with the yacht. Hence yachts that owners charter will have a higher premium as the risks increases.
- Age of Yacht: The older the yacht is, the higher the risks of breakdown and need of repair. Therefore the owner will need to pay a higher premium.
- Yacht Size: The bigger the boat, the more risks it could face while docking or travelling through narrow ways and more passengers, increasing the liability risks. Hence the premium for larger yachts or superyachts will be higher compare to smaller vessels.
- Yacht Condition: The owner will have to explain their experience in sailing and whether the yacht has been in any accidents in recent years. The owner will need to provide a detailed history of the vessel to help calculate the accurate premium.
The Ultimate Guide to Yacht Insurance in Hong Kong
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