Increased usage of lithium-ion batteries aboard yachts and superyachts presents significant risk for the maritime industry and it is compounded by the rapid evolution of technology with which regulatory oversight struggles to keep apace.
On 9 January 2025, a fire broke out on board the m/y Naisca IV while moored near Marseille. Initial indications are that the fire, which ultimately destroyed the Naisca IV and caused damage to two neighbouring yachts, originated from a lithium-ion battery. While efforts were made to mitigate environmental harm, the extent of the loss remains uncertain.
In this case, the extent to which fire safety protocols were followed remains unclear. However, this incident underscores the importance of (i) strict adherence to fire safety standards; (ii) insurance coverage; and (iii) ongoing training for captains and crew to understand the risks involved with lithium chemistries and cell balancing issues.
As the yachting industry grapples with the challenges posted by lithium-ion batteries, the need for enhanced regulation and proactive risk management has never been more evident.
Who is
responsible for fire damage
onboard yachts? If the fire is established to have originated aboard the Naisca IV, her owners and insurers would typically be the first parties held liable for claims, subject to the facts and available evidence. These claims would encompass a wide range of losses, including:
- Damage to nearby yachts - Wreck removal - Marina property damage - Environmental harm - Personal injury claims - Other related expenses.
Where evidence points to a defect in a lithium-ion battery, which was possibly used aboard a tender or luxury superyacht equipment (personal watercraft, e-bikes and other toys), the owners of the Naisca IV might have grounds to pursue recourse claims against manufacturers or suppliers or against surveyors or crew who failed to detect issues during inspections or maintenance. As the use of this sophisticated equipment increases, so too does the expectation of reasonable diligence in its maintenance and operation.
Will yacht owners be covered by
insurance? Yacht owners generally rely on hull insurance (to cover damage to their own yacht) and protection and indemnity insurance (to cover third- party claims).
Marine policies typically respond to fire damage claims however coverage is subject to critical conditions including:
- Seaworthiness: the yacht must be maintained in a seaworthy condition and owners are advised to maintain paperwork in order to prove this.
- Policy terms: the owners must adhere to policy terms, including any warranties, such as requiring the yacht to be ‘manned at all times’.
- Other exclusions: most marine insurance policies do not respond to claims arising from negligence or deliberate acts (including that of the captain and crew).
If the Naisca IV was seaworthy and compliant with her hull insurance policy (if applicable), in the first instance her owners may recover the full insured value of the yacht, subject to any applicable deductible.
THE REPORT | MAR 2025 | ISSUE 111 | 79
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