WHEN TO UPDATE THE POLICY

Adaptions and updates to a policy are easily overlooked. For instance, if the yacht is not being used and only skeleton crew are employed, your insurance company should be informed of the change of status.

Likewise, if the cruising area changes or the yacht starts to charter when it has previously been a private vessel, it is essential to inform your insurance provider as this change in risk could affect your cover.

• Don’t risk gaps in the insurance cover.
• Report changes regarding the use of your yacht to the insurance provider.

FLOW OF COMMUNICATION IN PLACE?

When a number of people are involved in managing and operating a yacht, strong communication is vital to ensure essential information is accurately conveyed and the action of procedures is decisive.

Consider who makes the call with regard to insurance on your vessel: who has that responsibility and how is the communication managed between the parties involved?

• • Essential information can easily get lost the more parties are involved.
  • Keep the flow of communication going to avoid gaps in insurance cover.

INSURANCE DOES NOT STOP AT THE PASSERELLE

When enjoying life aboard, the last thing on the mind of an owner or guest should be, What if?

We make it our business to pre-empt and cater for every what-if scenario, like when the owner goes ashore one morning and rents scooters with his friends. It’s insurance scenarios like this that can so easily be forgotten.

If an accident happens ashore or while diving, perhaps when parachuting or jet skiing, did that activity occur in connection to the yacht or not?

Ask your insurance company for clarification on water sport activities, guest cover, liability insurance, tender insurance and anything else that concerns you relating to the owner and guests’ overall experience when on charter or for private use.

• • Yacht insurance also affects onshore activities and water sports.
  • Guests on board should be provided with all information regarding cover for their planned activities.

WHO’S WHO ON BOARD AND HOW ARE THEY INSURED?

When a crew member injures their hand in the anchor winch or the last-minute sailor you took aboard for the race day breaks his leg as he slips on deck, it is too late to think about insurance.

Clarify what is included in your policy, who is covered, and under what conditions. There are many different options for managing crew insurance, including unnamed crew medical cover; named crew medical cover; crew accident cover; race crew accident cover; employer’s liability; and P&I to name a few.

We cannot stress enough the importance of having insurance cover in place for all aboard before an accident or illness occurs.

• How are crew members, last-minute sailors, or day workers insured?
• Make yourself familiar with the different types of coverage for permanent and temporary crew members.

MY JOB, YOUR JOB

Crew insurance is a special business. Very few policies on the market offer complete cover. When and where the crew is actually covered is not a question that should be asked after the chief mate has had an accident.

It is the yacht owner’s responsibility to make sure that the crew is covered to the minimum legal requirement.

This level of coverage will depend on the flag state of the vessel and its primary function is to protect the owner as an employer.

Some European-flagged vessels are required by law to provide health care for the crew as well, but individual needs quite often differ from the general coverage. The purchase of any additional personal medical cover is often left to the individual.

• • Ask yourself: in which situations is the crew covered by the vessel’s policy? Do I need more?

Medical and accident insurance

With insurance, it can feel a bit like being at sea: the better you are prepared, the less likely you will run into trouble.

Apart from having the correct scope of cover, you should also be aware of administrative issues, which in some cases could be life or death situations.

If in an emergency, for example, a hospital has not received a clear cost guarantee from the medical insurance, the medical service can be limited or postponed, which can result in serious problems for the patient.

Back to basics: never confuse medical insurance with accident insurance.

The medical insurance covers medical expenses in case of sickness, whereas the accident cover pays lump sums if – and only if – an accident has resulted in either death or permanent disability.

In the case of death, a beneficiary for the death benefit needs to be nominated.

• • Medical insurance and accident insurance are designed for completely different purposes.
  • Accident insurance alone is not sufficient as it will generally not cover any treatments.

How much cover do I need?

Accident cover for death and disability normally provides a fixed sum or a maximum of three times annual salary. This will be a one-off payment in the case of either event.

Medical policies that can be tailored to suit individual needs or those on the basis of unnamed crew cover hospital expenses and doctor visits following illness or accident. Many policies have restrictions, though, and it is important to read and understand the extent of cover provided.

The good news is, if your yacht is insured with Pantaenius Medical and Accident Cover, all the above can be included for your peace of mind.

• Your leisure activities may require additional insurance cover.
• Make yourself familiar with the vessel’s policies and compare the coverage to your individual needs.