Blue Water Insurance -
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We are frequently asked to provide a general idea of who is insuring cruising boats or boats operated offshore, outside of the waters of the USA. Here is a brief glimpse of some of the markets rated B+ or higher by A.M. Best Company or equivalent that write insurance for these boats.. None of the policies these companies offer are the same but they do have some commonality. For each company we have included their country of origin, their A.M. Best rating a copy of their policy wording we obtained from the company or the company website or from a policyholder of the insurance company.
Blue Water does not use or represent all of these markets. Blue Water IS NOT recommending you use any of these Insurance Companies. Since the policy wording of each company is different or custom, we are including a copy of the policy wording along with a comment where you will find the following the following policy provisions in each policy to reach your own decision if the market is appropriate for you.
- Named Perils or “All risks” coverage provisions
- Any unusual policy exclusions or policy conditions
- How the company treats Depreciation for “partial losses”
- What Laws / Jurisdiction apply
Please see our website F.A.Q. – Coverage Provisions for a brief description of the above terms and concepts.
Seawave Yacht Insurance, Underwriters at Lloyds, London rated A by A.M. Best
Seawave Yacht Insurance Policy Wording 20 April 2000, amended 18 November 2008. Section 1, Hull pays for direct accidental physical loss or damage to Your boat. There is no deductible for total losses unless caused by a Named or Numbered windstorm. Claims for actual and/or constructive total loss of your boat caused by a named or numbered windstorm are subject to the windstorm deductible stated on the declarations page, see page 4. There are 24 exclusions, see pages 5 and 6.
Depreciation there are 2 schedules – for boats 10 years or newer, the usual items – protective covers, canvas, vinyl and other like material, upholstery, fabrics, wall coverings carpets and rugs, batteries, outboard motors and inflatable tenders or dinghies. For boats over 10 years of age the number of items depreciated is expanded. See General conditions page # 6 of the policy.
Personal effects insurance DOES NOT cover sports equipment, cameras, currency, jewelry, furs, china, silver, valuable papers, documents, antiques, collectibles or computer hardware (including laptop computers) and software can credit cards, travelers checques, fine art. Fishing gear and tackle, unless permanently affixed to your boat are deemed Personal Effects. See section #4, page 8.
Jurisdiction page # 13. At your request, The underwriters will submit to the jurisdiction of a court of competent jurisdiction within the United States of America.
Blue Water Yacht Insurance Markets rated A and B+ by A.M. Best .
Both companies use the CIC Agreed Wording, edition 2009, which provides coverage for accidental physical loss of, or damage to the insured vessel subject to the insuring provisions, conditions, warranties deductibles and exclusions herein; subject to 14 exclusions, page 3 and 4 of the policy.
There is no depreciation for partial or total losses in this policy!
The deductible for damages to the vessel from a named or numbered windstorm is twice the hull/machinery deductible including a total loss of the insured vessel, see paragraph 5 page 3. These companies write coverage including named and numbered windstorm coverage in Florida, the Gulf States, the Bahamas, Caribbean and Gulf of Mexico both “in the box” and “out of the box” whilst the insured vessel is between 12 degrees 40 minutes North and 23 degrees 30 minutes North by 55 degrees west and 85 degrees west ( the "box") from 1st July to 1st November.
MOST IMPORTANT, the rates are competitive and the deductibles for named and numbered windstorms are reasonable!
The policy includes a "loss of use" clause which pays the necessary increase in living expenses incurred to maintain the customary standard of living of that Named insured which exceeds one thousand dollars Payment under this clause shall be limited to ten thousand dollars for any single occurrence regardless of the number of named insureds. Payment under this clause shall be further limited to the expenses incurred until the named insured settles in a new residence or the vessel is repaired or replaced. No payment shall be made under this clause for travel expenses.
This policy has a Pre-Dispute Arbitration clause, page 13.
- The parties are hereby waiving their right to seek remedies in Court, including a jury trial.
- Pre-arbitration discovery is generally more limited than and different from Court proceedings.
- The arbitrator’s award is not required to include factual findings or legal reasoning and any party’s right to appeal or to seek modification of rulings by the arbitrators is strictly limited.
- Arbitration is final and binding on all parties.
U.S. Flagged Vessels are subject to U.S. Laws and Jurisdiction, all others are subject to English Laws and Jurisdiction.
Great Lakes Reinsurance (UK) PLC. This company is based in the UK; their current A.M. Best rating is A+
SYP/6/PPO provides coverage for accidental physical loss, or accidental physical damage to the scheduled vessel, see paragraph # 3 page # 2, coverage A, Hull, Machinery, equipment and Dinghy subject to 23 exclusions to coverage A, pages # 3 and 4.
The policy has a 5 or 10% theft deductible of the agreed value of the scheduled vessel and/or equipment, see paragraph # 6 page 3 of 14.
The personal property limit is $ 1,000 maximum for any one item, pair or set, see coverage #*, personal property page 9 of 14.
This is a named operator policy, see clause X page 12 of 14.
The deductible for Named and or numbered windstorm losses is souble the hull deductible as shown on the declarations page Section A, see paragraph #8, page 3.
The scheduled vessel shall be valued at the agreed valuation on the declarations page, however, 14 items listed (including the percentage of applicable depreciation) in paragraph v, page 11 of 14 are subject to payment on the basis of depreciated cash value less the applicable deductible. This provision appears to apply to both Total and partial losses!
Jurisdiction. See Paragraph 11 page 13 , Service of Suit, Choice of Law and Forum. Federal courts of the United States of America, in particular, The Federal District court within which you the assured resides.
Markel American Insurance Company, Glenn Allen, VA. This company is rated A by A.M. Best Company.
IL.1000-0705 provides for all risks of loss of or to the vessel, see Section 3, Hull Coverage page 6 of 12..subject to 13 exclusions paragraph 3.1 pages 6 and 7.
This policy excludes occurrences caused by or contributed to by any design defect or manufacturer’s defect. See 3.1.8, page 7.
Tropical Storm Zones, for description see paragraph 1.27 page 3 of 12. This policy excludes occurrences by or contributed to by a tropical storm while in the northern tropical storm zone between July 1 and October 31, paragraph 3.1.3.
- Between 10 degrees 50 minutes and 31 degrees North Latitude and between 30 degrees and 100 degrees West Longitude. This means the entire Caribbean north of Trinidad, the Gulf of Mexico, Bahamas and Florida to the Florida – Georgia line, no tropical storm coverage July 1 to October 31.
- Between 8 degrees and 27 degrees North Latitude and between 90 degrees and 180 degrees West Longitude. This means the Pacific Coast from Guatemala north to San Carlos, MX plus S Pacific Islands no tropical storm coverage July 1 to October 31 and in the southern tropical zone between December 1 and 31 March, paragraph 3.1.4
Jurisdiction, see 2.23 page 6. Federal admiralty law of the United States of America, but where no substantive principle or precedent is established, the law of the state of New York shall apply.
Pantaenius Yacht Insurance, Underwriters at Lloyds, London UK and/or a consortium of several insurers Germany. A.M. Best rating A
Full Policy
This company will not write U.S. Flagged vessels navigating in the U.S.A or the Bahamas.
This is a “named perils” policy – see paragraph # 3, insured risks, Pantaenius-Yacht-Hull Clauses.
The policy is agreed value, paragraph # 9, without any deduction “new for old” on partial losses, Pantaenius Yacht-Hull-Clauses.
The contract is governed by the German Insurance Act, Pantaenius-Yacht-Hull Clauses paragraph # 16.
Yachtsure Inter Interactive, Underwriters at Lloyds, London. Rated A by A.M. Best.
Full Policy
This company requires Caribbean boats laid-up ashore to be in hurricane pits in the summer. The company does not write U.S. flagged vessels navigating in the U.S.A. and the Bahamas.
Yachtsure Insurance Clauses provides all risks of physical damage or loss or damage arising from any accidental cause, paragraph 3.1 page 2, subject to the exceptions and qualifications in Section 8 and 11 pages 5, 6, 7,8,9 & 10.
New for Old. We may make a deduction (in addition to your deductible) in the case for replacement of sails, protective covers, standing or running rigging or outboard motors of up to 1/3 of the value of each item to represent the advantage to you of receiving a new item in place of and old one, paragraph 11.11, page 9.
Jurisdiction: This insurance is subject to the exclusive jurisdiction of the courts of England and Wales, paragraph 11.16, page 10.
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