Yacht Insurance Claims — What to Do in the First 48 Hours

Your Immediate Obligations Under the Policy

Every yacht hull policy written on Institute Hull Clauses or equivalent specialist wording contains a sue-and-labour clause. This is not optional language — it is a contractual duty requiring you to take all reasonable steps to avert or minimise a loss. Failure to act promptly, for example leaving a damaged vessel unattended in deteriorating weather without arranging salvage or towing, can give underwriters grounds to reduce or decline the claim on the basis that further damage was avoidable.

Alongside sue-and-labour sits your duty to notify. Most policies require prompt notification of any casualty likely to give rise to a claim. 'Prompt' is not defined in days in most wordings, but in practice underwriters expect to hear within 24 to 48 hours of the incident, or as soon as communications allow if you are offshore. Delay weakens your position because it limits the underwriter's ability to appoint their own surveyor while evidence is fresh.

If your incident involves a third party — a collision with another vessel, damage to a marina berth, or injury to a guest — your P&I cover is also triggered. P&I notification obligations are separate from your hull policy and typically require even faster contact because the other party may already be pursuing a claim. Do not admit liability, make any payment, or agree any settlement with a third party before speaking to your broker. Any admission made without underwriter consent can void your P&I indemnity.

The First Actions on Board

Safety first, documentation second. Once crew and guests are safe and any immediate danger is controlled, your focus shifts to preserving evidence and preventing further loss. These two objectives run in parallel — they are not sequential.

Photograph and video everything before any repair, salvage, or clean-up work begins. Capture the position of the vessel, the state of the sea and weather, the damage itself from multiple angles, and any third-party vessel or object involved. Time-stamp your images if your device allows. Underwriters and their appointed surveyors rely heavily on contemporaneous photographic evidence, particularly for claims where the cause of damage is disputed — grounding versus collision damage, for instance, can look similar on the hull but attract different policy responses depending on your trading area and the Inchmaree clause wording in your policy.

Record the names, vessel names, flag states, and contact details of any witnesses or other parties involved. If a coastguard, harbour authority, or rescue service attended, note the agency, the officer's name, and the incident reference number. These records form the backbone of your claim file and are far harder to reconstruct after the fact.

• Secure the vessel against further damage — pump bilges, close seacocks, rig temporary covers over damaged areas
• Do not move the vessel from its post-incident position until your broker or the appointed surveyor has confirmed it is acceptable to do so
• Preserve any broken equipment, failed components, or debris — do not discard anything that could be evidence of cause
• Log the incident in the vessel's official log with time, position, weather conditions, and a factual account
• If crew are injured, obtain medical reports and retain records of any treatment given on board

Notifying Your Broker — What We Need From You

Contact us as soon as you have a safe communications window. You do not need a complete picture of the damage before calling — an initial notification with the basic facts is what matters. We will immediately notify the relevant underwriters on your behalf, request appointment of a surveyor, and confirm whether any emergency expenditure you are about to incur — towing, emergency haul-out, temporary repairs — is pre-authorised under your policy.

Emergency expenditure incurred to prevent further loss is generally recoverable under sue-and-labour provisions, but only if it is reasonable and, where possible, pre-approved. Spending significant sums on repairs before the surveyor has inspected can create disputes about whether the work was necessary or whether it obscured the cause of damage. Get written confirmation from us before committing to major expenditure.

For charter operators, the notification picture is more complex. If the incident occurred during a charter, your charter agreement and your P&I cover interact. Your charterer may have their own liability exposure, and depending on how your policy is structured — whether it covers charterers' liability or requires the charterer to hold their own cover — the claim routing matters. Bring your charter contract to the conversation so we can confirm which policy responds to which element of the loss.

• Policy number and insured vessel name
• Date, time, and GPS position of the incident
• A factual description of what happened — cause if known, damage observed
• Current location of the vessel and its condition
• Names and contact details of any third parties or witnesses
• Details of any emergency expenditure already incurred or about to be incurred
• Copy of the vessel log entry for the incident

The Surveyor's Role and What to Expect

Once notified, underwriters will appoint a marine surveyor — typically a member of the Yacht Designers and Surveyors Association (YDSA) or equivalent — to inspect the vessel and report on the nature, cause, and extent of the damage. The surveyor acts for the underwriters, not for you, but their report is the primary document on which the claim is assessed. Co-operate fully, provide access to the vessel and all relevant records, and do not instruct your own repairer to begin substantive work until the surveyor has completed their inspection.

If you disagree with the surveyor's findings — on cause, on the scope of damage, or on the repair specification — you have the right to appoint your own independent surveyor. This is worth doing if the claim is significant and the initial report appears to understate the damage or misattribute the cause. The cost of your own surveyor is generally not recoverable under the policy, but it is often money well spent on a large claim.

For incidents in the Mediterranean, Caribbean, or Gulf, the practical challenge is often finding a competent surveyor quickly in a remote location. We maintain relationships with surveying firms across these regions and can accelerate appointment. In UAE waters, incidents near Jebel Ali or in the Gulf may also engage war risk considerations if the damage is attributable to a political or security event — the boundary between marine and war perils matters for which policy section responds, and your broker needs to know the full circumstances immediately.

General Average, Salvage, and Third-Party Claims

If your vessel is involved in a salvage operation — whether under a Lloyd's Open Form equivalent, a commercial salvage contract, or an informal tow — general average may be declared. Under the York-Antwerp Rules, which govern most general average adjustments, all parties with a financial interest in the adventure (vessel, cargo, freight) contribute proportionally to the cost of a sacrifice or expenditure made to save the common venture. Your hull policy should respond to your general average contribution, but you need to notify underwriters promptly and appoint an average adjuster. Do not sign a salvage agreement without first speaking to your broker.

Third-party property damage and personal injury claims are handled through your P&I cover. The critical rule is that you must not negotiate, settle, or pay any third-party claim without underwriter consent. This applies even to apparently minor claims — a damaged marina finger pontoon, a scratched neighbouring vessel — because small claims can escalate, and any payment made without consent may not be reimbursed. Your P&I underwriters will appoint lawyers if the claim reaches that stage.

For crew injury claims, the Maritime Labour Convention 2006 (MLC 2006) sets minimum standards for compensation, repatriation, and medical care that apply to commercially operated yachts above the relevant gross tonnage threshold. If you operate under MLC 2006, your crew cover must be structured to meet those obligations. A claim involving crew injury is therefore both a P&I matter and potentially an MLC compliance matter — bring your crew employment agreements and MLC documentation to the conversation from the outset.

Protecting Your Position at Renewal

A claim, even a fully paid one, affects your renewal. Underwriters will want a full claims history, a surveyor's report confirming repairs were completed to standard, and in some cases a condition survey before offering renewal terms. If the incident revealed a maintenance issue — osmosis, structural fatigue, an ageing electrical system — expect underwriters to attach conditions or warranties at renewal requiring remediation.

The way you handle the claim in the first 48 hours directly influences how underwriters view you as a risk at renewal. Prompt notification, full co-operation with the surveyor, and clean repair records all signal a well-managed vessel. Delayed notification, disputed repair scopes, or evidence of deferred maintenance work against you. We will help you build a claim file that presents your position accurately and professionally, but the raw material — the log entries, the photographs, the repair invoices — comes from you.

If you are a charter operator, a claim during the charter season can also affect your ability to trade. Confirm with us whether your policy includes loss-of-charter-income cover and what the notification and documentation requirements are for that element of the claim. Income loss cover typically requires evidence of confirmed bookings that were cancelled as a direct result of the insured damage — keep those charter contracts and cancellation records.

Frequently asked questions

Do I need to notify my broker even if I am not sure I will make a claim?

Yes. Notify us of any incident that could give rise to a claim, even if the damage looks minor. Many policies require notification of any casualty, not just those where you intend to claim. Failing to notify and then finding the damage is worse than it appeared — or that a third party raises a claim later — can leave you without cover. Notification costs you nothing; silence can cost you the claim.

What happens if I have to spend money on emergency repairs before the surveyor arrives?

Emergency expenditure to prevent further loss is generally recoverable under the sue-and-labour provisions of your hull policy, provided it is reasonable and you have notified us first. Where possible, get our written confirmation before committing to significant spend. Keep all invoices and receipts, and photograph the damage before and after any temporary repair work. Do not carry out permanent repairs until the surveyor has inspected.

Can I admit liability to the other vessel's owner to keep things friendly?

No. Any admission of liability made without your P&I underwriters' consent can void your indemnity under the P&I section of your policy. Be courteous, exchange details, and ensure the other party has your insurance information — but do not accept fault or agree any payment. Pass the matter to us immediately and let the underwriters manage the third-party aspect.

How long does it take to get a surveyor appointed?

In major Mediterranean ports, the Solent, and Caribbean charter hubs, we can typically arrange surveyor appointment within 24 to 48 hours of notification. In more remote locations — outer Caribbean islands, Gulf anchorages, or passages through the Red Sea corridor — it may take longer, and we may need to arrange a preliminary inspection by a local boatyard before a specialist surveyor can attend. This is why early notification matters: it gives us maximum time to work the logistics.

My charter guests were on board when the incident happened — does that change anything?

Yes, in several ways. Your P&I cover responds to guest injury or property damage claims. Your charter contract may impose specific obligations on you regarding guest safety and incident reporting. If you operate commercially, MLC 2006 may apply to your crew. And if the incident results in cancelled charters, your loss-of-income cover — if you have it — requires its own documentation trail. Bring your charter contract and crew agreements to the first conversation with us so we can identify every policy section that is engaged.

What if the incident happened in a war risk area such as the Red Sea or Gulf?

War risk perils are covered under a separate section of your policy — or a standalone war risk policy — and are excluded from your standard hull cover. If your incident occurred in a listed war risk area, or if the cause could be attributed to a political or security event, the claim may route through your war risk cover rather than your hull policy. The boundary between marine and war perils can be disputed, and early notification with full circumstances is essential so we can identify the correct policy response from the outset.