All risk policy for yachts
Press release
12th August 2011
The Shipowners' Club, one of the few P&I Clubs to
offer specialist yacht insurance, has taken a new approach to yacht
liability, offering an All-Risk policy that seeks to de-mystify
aspects of the traditional wording contained in typical P&I
insurance Rules and making the conditions understandable to
non-specialist yachtsmen and brokers.
Conventional yacht insurance policies offered by both
general commercial insurers and P&I clubs have traditionally
featured complex wording using legal and maritime jargon which can
be difficult to understand for anyone who is not a specialist in
marine insurance. Ian Ferns, Shipowners' Research and
Development Manager, explains how the Club has tackled this
problem, "Our new policy document - running to just 2,000
words instead of the original 40,000 - takes a common-sense
approach to losses and liabilities and has very few excluded risks;
the assumption being that everything is covered unless the policy
states specifically that it is not. The policy aims to be
all-embracing, making it much easier for brokers to recommend it to
a client as a single package, rather than having to put together a
variety of separate types of cover".
A number of new features which will make the policy
attractive to yacht owners; all-risk water sports cover, including
perceived 'risky' pursuits such as water-skiing, jet-skiing and
diving; greatly relaxed voyage restrictions in many regions of the
world and cover for sailing yachts participating in organised
races. The policy can also be extended to include personal accident
cover for crew members, whatever their employment status or
nationality.
The Shipowners' Club hope that the new wording will appeal
to areas of the yacht market that have previously found the P&I
world a bit of a mystery such as the brokers who are not
marine specialists but have yacht owners, fleet managers or agents
as clients and wish to offer them uncomplicated, all-risk liability
cover.
Ferns explains the Club's strategy, "We knew that we had
to adjust and simplify our traditional Rules if we were to be
successful in attracting more business from the wider market.
We spent a lot of time with our existing clients and brokers,
discussing what they would like to see in a truly comprehensive
liability policy. As a result I think we have come up with an
extensive cover that is based on common sense, has far fewer
restrictions, is easy to understand, and will appeal to the
majority of yacht owners and their brokers."