SIX FACTORS TO CONSIDER THAT MAY AFFECT YOUR INSURANCE COVERAGE
From an underwriters’ point of view, there is a larger amount of risk in areas historically impacted by hurricanes, due to the high cancellations within the 2020 European charter (summer) season. A higher concentration of vessels in hurricane-exposed areas, combined with the effect the virus has on the industry resources in the area (for example, the presence of shipyards, contractors, crew, lockdowns, and the potential change of rules and regulations etc.) means underwriters will require a laid-up plan to be approved. If the laid-up plan is handled by the shipyards, procedures in places need to be specified.
2. BREACH OF INSURANCE POLICY WARRANTIES.
Any breach of warranty will jeopardize the yacht and owner’s cover in the event of a claim. For example, if the yacht is classed and the owner intends to suspend and/or delete the class for any reason.
3. SAFE MANNING.
If owners intend to reduce the number of crew, any change of situation must comply with the flag’s provisions related to safe manning whilst laid up.
4. VALID CERTIFICATES.
All the documents and certificates regarding safety, fire fighting etc. should be always valid.
5. MAINTENANCE & REPAIRS.
In the event of maintenance works, the owner needs to ensure that the shipyard has a proper third Party Liability policy, and any hot works will be notified to the IYC team promptly, in order to advise Underwriters.
6. PORT AUTHORITY COMPLIANCE.
Please ensure that you always comply with the rules and orders of the Port Authorities in regards to Covid-19. For example, before a vessel is allowed to sail, it should have first obtained confirmation that it will be permitted to berth in the port of destination.
For more information contact IYC’s Insurance team. Click here.
For more information on IYC’s range of services please contact the IYC office most convenient to you. IYC has offices in Fort Lauderdale, Palm Beach, Miami, Nantucket, Great Lakes, London, Monaco, Greece, Russia, Croatia, Montenegro, Scandinavia and Malta. To contact an IYC office click here.