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| News & Scoreboards |
Smoother Seas for Yacht Insurance
04/01/2004
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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.
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