INSURANCE
SKULD Dedicated to the yacht community alone, Skuld Yacht offers specialist products and beneficial synergies, designed specifically for the yacht owners’ needs. They understand that yacht risks are not static; nor are their T&Cs. Through their ‘think tank’ method of collaborating with customers and partners, the experienced team has developed a wide range of standard and additional products that evolve with yachting concerns, ensuring their customers are prepared for whatever risks they face. Products include: Yacht P&I, FD&D cover, Hull and machinery, Bunker insurance, Cash on board insurance, Contract: extended contractual liability (ECL) For more details Tel: Fergus Draper, head of yacht P&I Tel +44 20 7398 1473 or visit
www.skuld.com/products/yacht-owners/
Burr Taylor is a founder of Sturge Taylor, specialist in luxury yacht insurance. Its focus is on larger and more complex risks. Until recently most insurance packages adequately addressed the risks associated with vessel ownership and operation according to Taylor. But that’s changing. Now he sees a weakness when it comes to ‘corporate’ type risks; Cyber, Employment practices, Directors and management liability, Fidelity etc. The type of risks that any company with the size and turnover of a large yacht would usually have has not generally been included within an all encompassing yacht policy. More on that to follow, but should you choose an All Risk policy or a Named Perils one? Phillip Seippel is quite clear about this: There are no disadvantages to a true All Risk Policy.
But is the policy really All Risk? “That is why using an experienced broker is essential. When coverage is written on a named peril basis, the burden is on the insured to prove that one of the named perils caused the loss. Hence we prefer using the All Risk Form. An all-risk or open peril policy covers everything except what is specifically excluded in the policy,” explains Seippel. Taylor at Sturge Taylor agrees but points out that an all risks policy with rigid conditions/ exclusions may not be better than a broad named perils form.
There are countless jurisdictions and registration considerations when it comes to insurance, but recent specifics to look out for include the way The Maritime Labour Convention
is being
applied by some flag states warns Jacquot. It has be creating new challenges for yacht owners in France for example and will continue to change the way crew employment is handled onboard yachts: Recall that the Maritime Labour Convention (MLC) provides a set of comprehensive rights and protection at work for seafarers and aims to achieve minimum on board working conditions covering a wide range of matters, including working hours, health and safety, crew accommodation, seafarers’ welfare and seafarers’ contractual arrangements.
The new labour standards contained in the Convention consolidate and update more than 68 international labour standards related to the maritime sector adopted over the last 80 years. Taylor considers the main challenge will be human resources with such a diverse group of nationalities/ profiles and short term nature of employment for a significant proportion of crew.
CYBER RISKS ARE AND SHOULD BE
THE TOP PRIORITY OF YACHT OWNERS AS NUMEROUS COMPANIES IN THE
YACHTING INDUSTRY HAVE BEEN HIT BY CYBER ATTACKS
The world spins and we roll with it, adjusting and adapting as we can. New risks arise, and we need to be ready for them. Says Seippel, “Cyber Risk is very much a concern on larger luxury yachts, as is security. Cyber Risk can be covered by insurance. For security, we recommend using specialised companies to advise on security issues. Having the best third party liability insurance is also important.”
Drones are certainly more and more common on board yachts. For now some yacht insurers accept them under their yacht’s insurance policy as ‘equipment’ of the yacht, others exclude them categorically. Says Jacquot, “As drones increase in size and range, one could wonder whether yacht insurers will ultimately leave the insurance of drones to aviation underwriters in the same way that they leave helicopter insurance to them: food for thought...”
Cyber Risks are and should be the top priority of yacht owners these days because numerous companies in the yachting industry have been hit by cyber attacks. Insurance cover is available and should be purchased by yacht owners advises Jacquot at Steamship Mutual, but the best protection is loss prevention.
ONBOARD | AUTUMN 2018 | 91
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