04/01/2004
As yacht insurance premium increases have leveled off over the past year—back to a normal level of about 10 percent a year from a post-9/11 surge of as much as 50 percent—the insurers are looking at ways of enhancing basic coverage.
On the heels of AIG Private Client Group’s launch in December of a customized-coverage insurance policy, the Chubb Group has come out with an all-encompassing policy for yachts valued at $1 million and more, called the Masterpiece Yacht Preference policy.
The policy includes 25 standard coverages previously available only as endorsements. It provides coverage for losses because of mechanical breakdown, faulty repair, manufacturer’s defects and ice or freezing. Other features include payment for a loss caused by another vessel; charter coverage and loss of charter hire including payment of up to $25,000 when a written charter agreement cannot be fulfilled because of a covered loss; emergency towing and payment of up to $50,000 for marine environmental damage; and full-time paid crew liability, which includes the captain. A provision for payment of up to $5,000 for reasonable costs incurred to move a yacht out of harm’s way when endangered by a hurricane, marina fire or other covered peril addresses the frustrations that a yacht owner faces when trying to berth in an emergency, says Scott Keller, vice president of Chubb Personal Insurance.
To be eligible for the Yacht Preference policy, a yacht valued at $1 million or more must have a full-time paid captain and crew.