June 2016 – Sanctum Superyacht

Since the introduction of the MLC, the ‘Crew Package’ has become more important to crew with additional benefit and medical insurance becoming compulsory for commercial yachts.

Most owners will look after the crew with a full medical policy and cover expenses in the event of illness or injury, however with some exclusions for pre-existing conditions. Or if the yachts insurance changes providers, previous issues may be excluded from the new cover.

It is important therefore to know the health background of new and current crew to make sure they do not fall foul of any insurance exclusion in the event of a claim. It is also vital to know in an emergency if someone has any specific history of illness or reaction to treatment.

The easiest way to do this is to make sure each crew member completes a medical health check and questionnaire as part of the employment as ENG 1 will not highlight any pre-existing conditions. Most insurers if presented with a pre-existing condition at the inception of the policy may include at a small charge or for free.

With the race season upon us, it’s important to shed some light on this exciting sector of the industry. One of the reasons why an owner may opt for a sailing yacht, is not only the potential to explore some unchartered territories, but to unleash that competitive streak and race her in one of the many superyacht regattas held globally.

To gain that competitive advantage, owners fly in professional helmsmen and tacticians, in addition to the guests and full time crew, increasing cover requirements. As well, with the vessel participating in competitive racing, the potential for a Medical or Third Party Liability claim as a result of an accident can increase.

The declaration to your insurance broker is imperative in this situation, due to the risk changing considerably with increased bodies on board and the use of the vessel. As this is a material fact, to ensure coverage remains fully in force, your insurance brokers should have regatta participation agreed with the underwriters in advance of participation. There may also be the requirement to enhance cover to include the race crew employed for the event.

Underwriters don’t generally view regattas negatively, however some underwriters may impose an increased deductible for the mast and spar’s whilst racing for example. As most events follow the Superyacht Racing Rules, this gives underwriters some comfort due to the minimum room rule between vessels whilst underway and the staggered start based on the handicap rating of the fleet.

Overall, the priority is to have safe, competitive, fun on the water and to ensure the owner’s exposures to all on board, the vessel and third parties are fully covered. Prior to regatta participation, advise your insurance broker accordingly, or if you require any additional advice please do contact us.

Crew welfare

Get race ready