Partner Content

What are yacht owners forgetting the most? (Hint: It’s not their Ray-Bans)

“When it comes to caring for something you love, just as with anything else in life, you must be vigilant about protecting it.”

As the high net worth space has continued to grow at a rapid pace, the ownership of pleasure crafts has managed to keep up. In fact, 2017 saw the sixth straight year of growth in powerboat sales, according to the National Marine Manufacturers Association. While more people than ever are participating in either sporting or leisure activities involving yachts, many owners remain largely unaware of the serious risks they face.

While the primary risk to yacht owners is typically perceived as being dangerous weather and challenging seas, the unfortunate reality is that there are a variety of other hazardous incidents that may come into play, resulting in— but not limited to—fire, piracy, collisions, injuries and even deaths.

Not having adequate insurance coverage becomes an even more pressing issue when you look at the weather last year. The 2017 Atlantic hurricane season was the most expensive on record. More than 63,000 recreational boats were damaged or destroyed as a result of hurricanes Harvey and Irma, with a combined damage estimate of $655 million, according to the Boat Owners Association of the United States1. While the numbers around hurricanes Florence and Michael are not yet in, you can be sure that they will be staggering. It was only six years ago that we saw a similar scenario in the aftermath of Hurricane Sandy, and it’s likely we will witness another 100-year storm much earlier than we are due.

Even for those whose watercrafts managed to survive such brutal storms, having to patiently endure repairs that keep you sidelined during an already- too-short season can be difficult—and that’s before the estimate comes in.

There are several steps owners can take regarding their insurance coverage:

1. Do a policy review with a qualified marine insurance specialist who will assist you in finding a reputable carrier. This specialist will craft a customized plan to optimize your boat, crew and navigational requirements.

2. Have a contingency plan for storm preparedness. It is ideal to bring your boat ashore instead of leaving it inside the marina. If you choose to stay in a marina, avoid marinas with low-lying seawalls.

3. Run background checks on all crew members aboard.

4. Check the safety of the areas you plan on traveling to, as piracy is an ongoing risk. When it comes to caring for something you love, just as with anything else in life, you must be diligent about protecting it. With the 2018 hurricane season finally coming to an end, now is the appropriate time to have the conversation with your team of trusted professionals, who can help you prepare and stay protected.

Risk & Insurance

Disclaimer: Worth magazine is a financial publisher and does not recommend or endorse investment, legal, insurance or tax advisors. The listing of any firm in the 2019 Worth® Leading AdvisorsTM Program does not constitute a recommendation or endorsement by Worth magazine of any such firm and is not based upon Worth magazine’s experience with, or prior dealings with, any advisor. The information presented for each advisor, including but not limited to any related profile, statistical data, presentation, report, commentary, recommendation or strategy, has been provided by such advisor without review or independent verification by Worth magazine. Any such information is the sole responsibility of the advisor. Worth magazine makes no representation or warranty as to the accuracy or completeness of such information, assumes no liability for any inaccuracies or omissions therein and disclaims responsibility for the suitability of any particular investment recommendation or strategy for any person. Nothing contained in Worth magazine constitutes or should be construed as any form of investment, legal, insurance or tax advice or as a recommendation to buy, sell, hold or trade any securities, financial instruments or assets. Readers are advised to consult their legal, financial, insurance and tax advisors prior to making any investment or pursuing any investment strategy. Past, model or hypothetical performance is not indicative of future results.

back to top