International luxury superyacht insurance coverage
What does superyacht insurance cover?
A luxury yacht insurance cover consists of two main policy sections, Hull, and P&I insurance.
Hull Insurance
The “Hull” portion, (as the name says), covers the yacht itself, the machinery and all equipment, tenders and “toys” and accessories.
Protection & Indemnity Insurance
“P&I” stands for Protection & Indemnity and is the liability section of the coverage that covers third party risks, war risks and risks of environmental damage such as oil spills and pollution.
There are policy differences, and an insurance contract is not always easy to comprehend. Two common types of yacht insurance policy wording are an “All-Risk” policy and a “Named Perils” policy.
All-Risk Policy Coverage
In simple terms, an “All-Risk” policy covers everything, except what is listed in the policy exclusions.
Perils Policy Coverage
Whereas a “Named Perils” policy, covers only the perils listed as covered. Many policies exclude normal “wear and tear” from being covered.
How Crew & Program Changes Impact Yacht Insurance Coverage
Keep your insurance broker up to date with any changes to the yacht’s program, such as a new Captain and/or other crew changes, any changes to the navigation or if the yacht is going to a shipyard for routine maintenance, for a complete refit or for any repairs. It is essential to communicate these changes to your broker and if they are not pre-approved by the underwriters, could void your coverage. A new captain most likely needs to be “approved” by the Underwriters as “qualified” to run that type of vessel based on his/her license and experience on similar sized yachts. A copy of the license and the CV, plus any past claims records and experience are normally required and submitted to the Underwriters for approval. Furthermore, the Underwriters may also ask to see the credentials of the First Mate and engineer for approval.
How Itinerary & Shipyard Work Affect Yacht Insurance Coverage
It is important to address if there are any changes to the yacht’s itinerary; the navigational area may need to be updated to make sure that your insurance covers in that area. The shipyards usually have their own policy in place, but this needs to be addressed prior to the work starting. Always have the owner’s insurance broker and maritime attorney review the yard liability policy thoroughly. Full details of work being carried out is necessary to provide to the insurer, including any “hot work”, defined by the Occupational Safety and Health Administration (OSHA) as “riveting, welding, flamecutting or other fore or spark-producing operation performed aboard a yacht”, which MAY be excluded from the policy.
Common Yacht Policy Warrants:
- Qualified Captain at all-times
- Agreed Navigational area only
- No towing of tenders until a tow plan has been seen and agreed by Underwriters
- Private Crew medical Insurance policies in place at all-times
Why Superyacht Insurance Group?
Owning a mega yacht is as much a passion as it is a significant financial commitment. At Superyacht insurance Group, we secure tailored yacht insurance solutions to safeguard your asset while helping you navigate the complexities and risks of yacht ownership.
Before purchasing yacht insurance (Hull, P&I) for your yacht or superyacht, it’s important to partner with a specialist broker who truly understands the complexities of this niche market—such as Superyacht Insurance Group. Establishing a long-term professional relationship with a trusted expert ensures your coverage evolves alongside your vessel and operational needs.
At Superyacht Insurance Group, clients are encouraged to carry out thorough due diligence before binding any policy. This includes asking detailed questions about coverage scope, exclusions, and any limitations that could impact your protection at sea or in port. Once your policy is issued, take the time to carefully review the contract to confirm it fully reflects the terms and discussions agreed upon with your broker.
A tailored approach—like the one provided by Superyacht Insurance Group—helps ensure confidence and peace of mind when safeguarding high-value yachts and superyachts.
24 years of expertise in the yachting industry
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Lloyd's Marine/ Yacht insurance
For yacht owners seeking world-class protection, Lloyd's of London stands as one of the most respected names in marine insurance. Renowned for its centuries-old heritage and specialist underwriting expertise, Lloyd’s Marine Yacht Insurance offers bespoke coverage solutions tailored to the unique demands of luxury vessels and global navigation.
Not just insured—understood.
We will search the international and U.S. insurance markets for the most suitable coverage at the best premium for your luxury vessel.
Contact us when you are about to purchase your luxury yacht, when it has been built and you are ready to take possession, or when the current yacht policy is up for renewal.
FAQs Super & Mega Yacht Insurance
Yacht insurance is a specialized marine insurance policy designed to protect your yacht against risks such as physical damage, theft, liability, and certain emergencies while on the water or in storage.
Coverage varies by policy, but most yacht insurance plans include:
- Hull & Machinery Coverage – Damage to the yacht itself
- Liability Coverage (P&I)– Injury or property damage to others
- Personal Effects Coverage – Belongings onboard
- Medical Payments – Injuries to you or passengers
- Uninsured Boater Coverage – Protection if another boater lacks insurance
- Towing & Assistance – Emergency towing and breakdown support
It depends on your location and circumstances. While not always legally required, marinas, lenders, and charter companies often require proof of insurance before docking, financing, or chartering a yacht.
- Premiums depend on several factors:
- Yacht value and size
- Type (sailing yacht, motor yacht, catamaran)
- Age and condition
- Navigation area
- Claims history
- Owner’s boating experience
Generally, annual premiums range from 1% to 5% of the yacht’s insured value. View coverage
Many policies cover storm damage, but some may:
- Require higher deductibles for named storms
- Exclude certain high-risk regions during hurricane season
- Require a hurricane preparedness plan
- Always review your policy details carefully.
If you hire professional crew, you may need:
- Crew Medical Insurance (the yacht insurance may require it)
- Crew Liability Insurance (usually included under the yacht’s liability insurance)
Yes, most comprehensive yacht insurance P&I policies include salvage and wreck removal costs, which can be substantial after a serious incident.
A wreck removal certificate is issued by the flag state after submission of the wreck removal coverage to the flag state.
Navigation limits define the specific geographic boundaries where the yacht is covered. Coverage may
be limited to:
- Inland waters
- Coastal waters
- International cruising regions
- Sailing outside your approved territory may void coverage unless pre-approved.
Key Aspects of Navigational Limits:
- Seasonal Restrictions:
- Coverage may be restricted or excluded during high-risk times, such as hurricane season.
- Breach of Warranty:
- Operating outside these limits is a breach of contract, which can lead to claims being denied.
Coverage Extensions:
If you plan to travel outside your coverage limits, you can often obtain a temporary endorsement from your insurer to maintain coverage.
Risk Management:
Limits are set based on the yacht’s size, type, and the risk level of the location
If you finance your yacht, the lender technically has a financial stake in the boat until it’s fully paid off. To protect that investment, lenders typically require:
- Hull coverage for the full agreed value or loan amount
- Liability coverage, often with a minimum limit.
- The lender listed as a loss payee on the policy
- Proof of insurance before releasing funds
Without meeting these requirements, the loan usually won’t be approved or finalized.
Marinas and yacht clubs require insurance mainly to reduce their own liability exposure. They commonly require:
- Protection & Indemnity (liability) coverage
- Minimum liability limits
- Proof of coverage before issuing a slip agreement
This protects the marina if your yacht causes damage to docks, other
boats, or results in injury.
Even if yacht insurance isn’t legally required in your area, it is often
practically mandatory due to marina rules.
Typically, insurers request:
- Completed quote form/application
- Vessel survey (especially for older yachts)
- Proof of ownership
- Captain’s CV
- Prior claims history
- Current registration
- Shop the insurance
- Choosing higher deductibles
- Maintaining a clean claims history
- Storing the yacht in secure marina
Common exclusions may include:
- Normal wear and tear
- Lack of maintenance
- Marine life damage (sometimes excluded)
- Intentional acts
- War and nuclear risks
- Always review exclusions carefully.
If an incident occurs:
- Ensure safety of passengers and crew
- Notify authorities if required
- Document damage with photos
- Contact your insurer immediately
- Prompt reporting helps speed up the claims process.
Agreed Value: You and the insurer agree on the yacht’s value upfront. In case of total loss, you receive that agreed amount.
Actual Cash Value (ACV): The payout is based on the yacht’s depreciated market value at the time of loss.
Agreed value policies typically cost more but offer more predictable payouts.
