INSURANCE
ITIC analysed the claim from the Owners and discovered that only one single week’s lost charter had resulted from this error. The yacht broker had been able to find charters that season regardless of the mis-description. Furthermore, the Owners had not complied with the broker’s request to keep the yacht fully available for charter, instead putting it into the yard for repair work during this period. Faced with these arguments, the yacht Owner reduced his claim to €30,000. ITIC continued to assist the yacht broker in defending the claim from the yacht Owner, until the yacht Owner decided to withdraw his claim.
Other examples include a naval architect who had to do additional work to a mast that resulted in him receiving an invoice for €200,000 from his clients that ITIC arranged settlement at 125,000 and a yacht manager, faced with a liability payment of VAT of 150,000 for a helicopter in storage, who was reimbursed in full by ITIC. Clearly you need to have professional indemnity insurance and insurance, but the best case scenario is never having to use them.
Refit and maintenance at the yard means checking insurance for tweaks that may need to be made during the yard period. Largely it depends on the extent of work to be covered. Explains Paul Miller, Director of Underwriting at Hiscox MGA; “If you have a yacht worth £3million going into yard for a light touch-up costing £0.5 million, then the normal navigating policy is probably fine. But if you have £20million boat and are doing a £10 mill refit we would recommend that the navigation policy is cancelled and replaced with a builder’s policy, which is better suited and more specific to that level of work on the basis of it also being a substantial period of time in the yard. Buy a policy based on the completed value, in this case, the going-in value and the refit value will mean it is worth £30million.”
ITIC
ITIC is the leading provider of professional indemnity insurance to superyacht professionals, insuring more than 100 companies worldwide. The team at ITIC has a complete understanding of the risks, combined with a high degree of claims experience. Yacht brokers, designers and managers invariably deliver services to affluent clients who will pursue any claim vigorously, no matter how insignificant or small the error may have been. Let ITIC look after your PI insurance so you can look after your business. For more details Tel: +44 (0)20 7204 2928 or visit
www.itic-insure.com
The obligation is on the Owner to decide, there is a danger to the Owner of an exposure of the value of the boat. Thomas de Campou, Sales Manager at ANP agrees; in order to cover your Owner’s needs exactly, he recommends a Builders Risk Insurance policy and it’s not just the type of works, the refit duration or the type of yacht, but also the background and the security of the yard that need to be considered.
As Michelle Van der Merwe at Pantaenius says, contractors not employed by the shipyard, but directly by the yacht also need to be insured: Says Paul, “As soon as a contractor walks through the gate, they are 100% the yacht’s responsibility: For example, if a van reverses into the scaffolding of the next door yacht, that’s the yacht’s problem. Whereas if you order the work through the shipyard, the yard is responsible for their own insurance.” Richard Power, Managing Director at
FASTNET MARINE INSURANCE Fastnet is an independent insurance broker based in the UK, providing specialist marine insurance services to clients Worldwide since 1984. The business is operated by working directors, all of whom have over 25 years insurance experience, guaranteeing unbiased advice and independence of operation. They pride themselves on providing innovative products with competitive premiums on a wide range of yachts plus, straightforward dealing and a quick response. They offer cover for Hull & Machinery, Third Party and P&I Liability, Marine Legal Expenses, Employers Liability, Personal Accident and Medical Expenses / Repatriation risks. For more details Tel: +44 (0)23 8063 6677 or visit
www.fastnet-marine.co.uk
Fastnet Marine Insurance Services International says, “The most frequently overlooked element by managers, Captains and Owners is omitting to inform insurers in advance.”
So, it’s when a yard contract contains terms which either deny the Owner the
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