Insurance payment for a calendar year
This payment depends on differing risks arising during yacht operation. In most cases it equals 0.7 to 1% of the assessed value. Its determination may be performed on the basis of the latest technical examination or surveyor decision. Vessel price, size, year built, loss ratio statistics, captain’s qualification, crew list, and the amount of insurance coverage, including the risks list are basic aspects of risks estimation.
The right way to determine yacht insurance cost
To determine yacht insurance cost (minimal for a ship owner) for an insurance contract, it is necessary to fill out the form, specifying the following:
Minimum yacht insurance period
In case we enter into an agreement with an insurance agent, the minimal insurance period is 1 year. Before signing a contract, agents pay attention to basic insurance risk aspects.
Insurance policy cost depends directly on the insurance risks aspects and following conditions:
- captain and crew’s experience (a more experienced crew gains the confidence of insurance companies);
- crew hiring conditions (a resident crew better knows all systems and machinery of a vessel, and this lowers possibility of accidents);
- anchorage ports and sailing spots (American insurance companies don’t assume responsibilities for coverage of the vessel in Cuba, Tahiti or pirate areas of Somalia);
- condition of equipment and rescue facilities;
- vessel insurance period (there are known cases when ship owners harm or destroy their vessels on purpose, so short insurance periods are considered risky and are often refused)