Superyacht Insurance Over 24 Metres — What Owners Should Know

Hull and Machinery: The Foundation of Your Programme

Your hull and machinery (H&M) policy is the core of any superyacht insurance programme. For vessels over 24 metres, specialist underwriters in the London market and European company market write cover on Institute Yacht Clauses or bespoke wording that incorporates the key protections of the Institute Hull Clauses — including the Inchmaree clause. The Inchmaree clause matters because it extends cover to latent defects in machinery and hull, negligence of crew, and bursting of boilers or breakage of shafts. Without it, a mechanical failure that cascades into a sinking could leave you arguing over whether the proximate cause was a covered peril.

Agreed value is the standard basis for superyacht H&M. Your insured value should reflect a current market valuation or a recent survey figure — underwriters will challenge a figure that looks materially out of step with the vessel's age, condition, and comparable sales. If your yacht is under construction or mid-refit, make sure the policy wording explicitly covers the increased value during the build period and names the yard as an additional assured where your contract requires it.

Sue-and-labour costs — the reasonable expenses you incur to prevent or minimise a covered loss — are recoverable under your H&M policy in addition to the claim itself, not as part of it. This is a critical distinction when you are paying salvage contractors at an emergency anchorage in the middle of a Mediterranean season. Confirm with your broker that your wording does not cap sue-and-labour at the policy limit.

P&I Cover: Third-Party Liability at Superyacht Scale

Protection and indemnity (P&I) cover for a superyacht over 24 metres is not the same product as the third-party liability section bolted onto a leisure yacht policy. At this size, your liability exposure includes wreck removal, pollution, cargo carried under a charter arrangement, and passenger claims — all of which require limits and wordings that a standard leisure policy will not provide.

The Convention on Limitation of Liability for Maritime Claims (LLMC) sets a floor on how far you can limit third-party claims, calculated in Special Drawing Rights against the vessel's tonnage. For a superyacht in the 24–80 GT range, those limits can be reached quickly by a serious collision or a pollution incident in a sensitive coastal zone. Your P&I cover should sit above the LLMC baseline with sufficient headroom for the jurisdictions you trade in — Mediterranean coastal states, UK waters, and US or Caribbean ports all carry different enforcement environments.

If your yacht operates under a charter agreement, your charter contract will almost certainly specify minimum P&I limits and may require you to name the charterer or management company as an additional assured. Read that clause before you bind cover, not after. Your broker should be asking the underwriter on your behalf whether the policy responds to charter-related passenger liability and whether the geographic scope of the P&I matches your H&M trading limits.

Crew Cover and MLC 2006 Obligations

The Maritime Labour Convention 2006 (MLC 2006) applies to commercial yachts over 24 GT with professional crew, and its reach extends to vessels flagged in MLC-ratifying states even when operating in non-ratifying waters. MLC 2006 requires financial security for crew repatriation, wages in the event of abandonment, and compensation for death or long-term disability. If your flag state has ratified MLC 2006 and your vessel is inspected in a port state that enforces it, an inadequate crew insurance certificate can result in detention.

Crew personal accident and illness cover should be structured to meet MLC 2006 minimums as a floor, not a ceiling. Your crew are professionals operating complex machinery in open water; the medical evacuation costs alone from a remote cruising ground — whether that is the outer Aegean, the BVI, or the Red Sea — can be substantial. ENG-1 medical fitness certificates are a condition of employment for professional crew in UK-flagged or MCA-coded vessels, but they do not substitute for comprehensive crew cover.

Employer's liability for crew is a separate consideration from P&I passenger liability. Make sure your programme clearly delineates which policy responds to a crew injury claim and that there is no gap between the two. Some superyacht programmes bundle crew PA, employer's liability, and MLC 2006 financial security into a single crew section; others place them separately. Either approach works, but the coverage must be continuous and the limits must be adequate for the number of crew and their nationalities — repatriation costs vary significantly by crew domicile.

Charter Operations: What Changes When Guests Pay

The moment your yacht earns charter revenue, the risk profile changes and so must your policy. A vessel on a MYBA or AYCA charter agreement is carrying paying passengers, which triggers passenger liability obligations, potentially changes your flag state's commercial coding requirements, and may affect the basis on which your hull underwriter views the risk. Some H&M policies exclude commercial charter use entirely unless declared; others charge an additional premium and impose conditions such as a professional skipper with a minimum qualification level.

Your charter contract — whether a bareboat or crewed charter — will specify the law governing disputes and the liability allocation between owner and charterer. Under a crewed charter, the owner typically retains liability for crew acts and vessel seaworthiness; under a bareboat, the charterer assumes operational control but your hull remains your asset and your insured value. The York-Antwerp Rules govern general average contributions if a common peril forces a sacrifice — and if your charterer's guests have personal effects or equipment aboard, those items may generate a general average claim against you unless the charter contract and your P&I wording address it.

If you operate in the Gulf — UAE waters, Oman, or further afield — be aware that the DIFC and ADGM frameworks in Abu Dhabi and Dubai are increasingly used for superyacht charter disputes, and some underwriters require that your policy be placed through a locally licensed entity or endorsed for regional compliance. Your broker should confirm the regulatory position before you commit to a charter season in those waters.

War Risk, Extended Trading, and Lay-Up

Standard H&M and P&I policies exclude war, strikes, and related perils. If your trading area includes the Red Sea, the Gulf of Aden, or waters near the Strait of Hormuz, you need a separate war risk endorsement or a standalone war risk policy. The Joint War Committee (JWC) publishes a listed areas schedule that underwriters use as a reference point; vessels transiting listed areas typically require prior notice to underwriters and may face additional premium. The Bab-el-Mandeb strait has been a listed area during periods of regional conflict — check the current JWC schedule before planning a Red Sea passage.

Extended trading beyond your policy's geographic limits — taking the yacht from the Mediterranean to the Caribbean for the winter season, for example — requires a navigation warranty extension. This is not automatic. Your broker needs to notify underwriters, agree the transit route and timing, and confirm that your crew qualifications and vessel condition satisfy the underwriter's requirements for an ocean passage. Failure to do this can void your cover for the transit and potentially for the entire policy period if the breach is material.

Lay-up periods offer an opportunity to reduce your premium, but the conditions attached matter. Underwriters will typically require the vessel to be out of commission, ashore or in a recognised marina, with crew reduced or absent. If your yacht is laid up out of class — that is, with an expired or suspended class certificate — your deductibles will widen and some covers may be suspended. Keep your class current or discuss the implications with your broker before the survey lapses.

• Notify underwriters before transiting any JWC-listed area
• Confirm geographic limits match your full charter season itinerary
• Keep class certificates current to avoid deductible penalties
• Agree lay-up conditions in writing before reducing crew or going ashore
• Check war risk cover separately from your main H&M policy

What to Bring to Your Broker Before Binding or Renewing

Superyacht underwriters need more information than a standard yacht submission. The more complete your presentation, the more competitive and accurate the terms you receive. Gaps in the submission — an out-of-date survey, an undisclosed charter history, or a crew list without qualifications — give underwriters reason to load the premium or attach restrictive conditions.

Your broker should be asking the underwriter on your behalf about claims cooperation clauses, the basis of valuation at total loss, and whether the policy responds to cyber-related incidents affecting navigation or engine management systems — an increasingly relevant exposure on vessels with integrated bridge systems.

• Current valuation survey (ideally within 24 months)
• Full vessel particulars: LOA, GT, flag, class society, build year, builder
• Crew list with qualifications, certificates, and MLC 2006 compliance documentation
• Intended trading area and charter programme for the policy period
• Three to five years of claims history
• Copy of any charter management agreement or MYBA/AYCA charter contract
• Details of any recent refit, conversion, or change of use

Frequently asked questions

Do I need separate P&I cover, or does my hull policy cover third-party liability?

For a superyacht over 24 metres, a combined hull and liability policy may be available but is rarely adequate on its own. Standalone P&I cover gives you higher limits, clearer wording on pollution and wreck removal, and the ability to name charterers or management companies as additional assureds — none of which a standard liability section handles well. We will advise you on the right structure for your vessel and trading pattern.

What happens if my yacht is on charter when a claim occurs?

Your policy must explicitly cover commercial charter use, or the underwriter may decline the claim on the basis that the risk was materially different from what was declared. If you are operating under a MYBA or AYCA agreement, your charter contract will also specify liability allocation between you and the charterer. We review both documents together before binding to make sure there are no gaps.

How long does it take to bind superyacht cover?

A well-prepared submission with a current survey, full crew details, and a clear trading area can be bound within a few working days for a straightforward risk. Complex risks — vessels with recent claims, unusual trading areas, or charter operations in war-risk zones — take longer because we need to approach multiple specialist underwriters and coordinate terms. Start the process at least four weeks before your renewal date or charter season begins.

What do you need from me to get a quote?

At minimum: a current valuation survey, full vessel particulars (LOA, GT, flag, class, build year), your intended trading area and charter programme, a crew list with qualifications, and three to five years of claims history. If you have a charter management agreement, send that too. The more complete the submission, the more accurate and competitive the terms we can obtain on your behalf.

Does my policy cover a Red Sea or Gulf transit?

Not automatically. War risk is excluded from standard H&M and P&I policies, and the Red Sea, Gulf of Aden, and waters near the Strait of Hormuz are currently on the Joint War Committee listed areas schedule. You need a separate war risk endorsement or policy, and underwriters must be notified before you enter a listed area. We arrange war risk cover as part of your programme and advise on current JWC listings before any planned transit.

What are my obligations under MLC 2006 and how does insurance help me meet them?

If your yacht is commercially coded and carries professional crew, MLC 2006 requires financial security for repatriation, wages in abandonment, and death or disability compensation. Port state control officers can inspect your MLC 2006 financial security certificate and detain the vessel if it is absent or inadequate. We structure your crew cover to meet these requirements and provide the documentation your flag state and port state inspectors need.