On higher value builds and refits it may be possible to structure the sum insured (and therefore the premium) around the cost/value of the build at various stages. I arranged cover for one superyacht builder where an initial premium down-payment was made followed by additional premium instalments which were levied at periodical value declarations by the builder.
Third Party Liability:
This part of the cover should cover the legal liabilities of the owner of the boat in build arising from physical loss or damage to third party property and/or death or bodily injuries to third parties whilst the vessel is afloat for the purposes of being worked upon or while underway on sea trials. It should also cover any reasonable costs incurred in removing and disposing of the wreck of the vessel or any neglect or failure to raise or remove the wreck. The limit of indemnity for Third Party Liability will usually be a minimum of £3,000,000 but where higher value vessels are the subject of the insurance then more appropriate indemnity limits should be sourced.
Stand-Alone or Combined Solution?
Individuals who are restoring or fitting-out their own leisure-craft can obtain Builders Risk insurance by way of some leisure-craft insurance policies. Cover would include hull and machinery to an agreed completion value and third party liability too. Individuals should seek advice as to any Employers Liability Insurance requirements that may arise in the event of any work being carried out by subcontractors or volunteers.
Commercial ventures, charities and trusts can include their Builders Risk cover on a combined Marine Trade Insurance policy where cover for their Property, Business Interruption, Public, Products and Employers Liability Insurances could also be placed. Stand-alone options are also available and it is advisable for boat builders to seek advice from a specialist Marine Trades Insurance broker to ensure their insurance programme is correctly aligned to the needs and goals of the business.I've been providing insurance programmes to marine-based clubs for over 19 years. If I were to ask that very question to a room full of insurers and insurance brokers who operate in this specialist segment I am quite certain that there would be a deafening clamour as each sought to affirm that their own pet policy or scheme was the very best insurance option for sailing, yachting, cruising and any other marine-based club. An array of whistles, bells and other rinky-dinks would be paraded in great detail, no doubt represented from the point of view of the provider rather than a sailing club. After all, sales people have something to sell and rarely are they able to resist the opportunity to get selling - even when odds as fearsome as this demand selling of heroic proportions - which usually means shouting even louder.
It's pretty much the same scenario when it comes to insurance marketing in this specialist part of the Marine Leisure Industry. There's lots of noise from an increasing number of participants with each trying to gain attention by being noisier than everyone else. Lots of noise but very little in the way of differentiation and everyone offering "bespoke" cover with plenty of "unique" features. How on Earth is a sailing club committee to decide exactly what the best option is for their club and its members?
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