Admiral Marine & World Cruising Club – Online Seminar Series Part 1 – Marine Insurance Explained

Introduction…

During the Coronavirus of 2020, both Admiral Marine and long term partner the World Cruising Club, have teamed up to provide an Online Seminar Series to help answer key questions about Marine Insurance and the Claims Process for Bluewater Cruising Yacht Owners.

The Online Seminar Series includes Jeremy Wyatt the Communications Director for the World Cruising Club, who’ll be asking key questions about Marine Insurance to Dave Andrew, the underwriter from Admiral Marine – Yacht & Boat Insurance.

Online Seminar Series Video Part 1 – Marine Insurance Explained…

Complete Text Script Below Of The Marine Insurance Explained Video…

For those who’d prefer to read the complete text script of the Marine Insurance Explained Video, we’ve outlined this below for you, which includes; factual key questions and answers. If you’re interested in Part 2, please visit – Online Seminar Series Part 2 – The Marine Insurance Claim Process.

Jeremy Wyatt From World Cruising Club Speaking…

Well, good morning I’d like to welcome everyone to our little conversation this morning about Marine Insurance, Insurance For Cruising Yachts. Dave, can you just introduce yourself and tell us what your role is at Admiral Marine – Yacht & Boat Insurance?

Dave Andrew From Admiral Marine Speaking…

Good morning, my name’s Dave Andrew, I’m the underwriter at Admiral Marine – Yacht & Boat Insurance. I’ve been here for 17 years and basically being the underwriter, means that I liaise direct with our customers and set our premium and terms.

Jeremy Wyatt From World Cruising Club Speaking…

And Richard, what’s your role at Admiral Marine – Yacht & Boat Insurance?

Richard Chitty From Admiral Marine Speaking…

I’m Richard Chitty, my role at Admiral Marine – Yacht & Boat Insurance, is looking after the Claims. So, I hope I don’t have to speak to you. But, if I do I’ll try and make your experience as easy and passable, to get you back on the water and sailing again.

Please Note:  If you would like to know more about The Marine Insurance Claim Process, please visit – Online Seminar Series Part 2 – The Marine Insurance Claim Process, where Richard Chitty will answer specific questions about this for you.

Jeremy Wyatt From World Cruising Club Speaking…

So, as part of our conversation this morning, we’re hoping to lift the veil on what it is that’s included in an Insurance Policy. What is it you’re actually buying, I mean that’s really my first question for you Dave, is when somebody buys an Insurance Policy….what are they getting?

Dave Andrew From Admiral Marine Speaking…

Well, what they’re buying is something that they hope they will never need to use. But, what they are buying is peace of mind that if something goes wrong, they have recourse to an Insurance Policy to put it right and those are things like:

  • Accidental Damage to the Boat.
  • Losing your Tender or your Outboard Motor.
  • Personal Property associated with the Boat.
  • And of course your liabilities to Third Parties.

Jeremy Wyatt From World Cruising Club Speaking…

Are there any areas that are not included typically in a Marine Insurance Policy that sometimes surprises people that isn’t there, what might they expect is there, but is not normally included?

Dave Andrew From Admiral Marine Speaking…

Well, most marine policies will include a small amount of Personal Accidents and Medical Expenses Covered, but that shouldn’t be confused with the sort of cover that you would get from a specialist Travel Insurance Provider.

Jeremy Wyatt From World Cruising Club Speaking…

So, really we’re talking about the Boat and the equipment on the Boat, and your liability for operating?

Dave Andrew From Admiral Marine Speaking…

Exactly, it’s the Boat and your liabilities arising from it.

Jeremy Wyatt From World Cruising Club Speaking…

Yeah and it’s not an exact science, I know, but what are the kind of things that you’re considering when you’re coming up with a premium. Because a premium is the amount of money someone pays and that’s effectively the measure of the risk isn’t it?

Dave Andrew From Admiral Marine Speaking…

That’s exactly right, there are all sorts of factors that I will take into account, not least of which:

  • The Value of the Boat.
  • The Age of the Boat.
  • The Size of the Boat.

Jeremy Wyatt From World Cruising Club Speaking…

So, why would the things like the Age and the Value of the Boat make a difference?

Dave Andrew From Admiral Marine Speaking…

The Value of the Boat, we actually apply a rate per cent to the Total Value, so that’s absolutely key. The age of the Boat, will to an extent determine Value and an older Boat you may find, will have a lower value. But, premium will be proportionately higher because a partial loss Claim, Repairs to Damage for example, will cost the same no matter how old the Boat.

Jeremy Wyatt From World Cruising Club Speaking…

So, the premium is really looking at the likely cost of putting that damage right, rather than necessarily what your Boat is worth?

Dave Andrew From Admiral Marine Speaking…

Exactly, that’s exactly what it is. We also take that Value and Risk into account by applying excess. Some people might be more familiar with the term deductible, that’s the amount of any Claim, for which the insured is responsible. Usually, we would apply a percentage of Boat Value, the excess is dependent on geographical location and it may be possible to reduce premium if you volunteer to increase the amount of excess the insurer first comes up with.

Jeremy Wyatt From World Cruising Club Speaking…

You, mentioned geographic area, why does the area make a difference to the premium?

Dave Andrew From Admiral Marine Speaking…

The area is significant, because in our experience cost of Claims is so much greater, the further away from European waters you move. That’s, particularly true, when you are Bluewater Cruising. You are probably far less likely, to have an incident Crossing The Atlantic or Crossing The Pacific, than you are Day Sailing in the Solent. But, you’re a long way from help, you’re a long way from home and any repairs could be significant cost wise.

Jeremy Wyatt From World Cruising Club Speaking…

So, again it’s not the likelihood of that situation occurring, it’s the cost of rectifying the situation should it occur and that’s what we’re measuring?

Dave Andrew From Admiral Marine Speaking…

That’s exactly right and that’s also true for example, in the Caribbean, where cruising is absolutely wonderful. But, the Caribbean way of life, is one of those tomorrow never comes sort of situations and unless you are actually there in the Caribbean. Supervising the yards to get repairs done, it can take forever to get a fairly simple repair carried out and all the time, particularly if the Boat is ashore your insurer is incurring storage charges.

Jeremy Wyatt From World Cruising Club Speaking…

That’s an interesting point, if I was to have an accident whilst cruising, my Insurance Policy is going to cover the cost of getting my Boat back to where the situation it was beforehand. Less my deductible, but it’s not going to reimburse me for the cost, necessarily of moving into a hotel is it?

Dave Andrew From Admiral Marine Speaking…

No, it’s not, to a significant degree. The Admiral Marine – Yacht Insurance & Boat Insurance Policy offers a limited amount of accommodation cover, if the boat is uninhabitable. But, really that sort of thing is a consequential loss that a Marine Insurance Policy, isn’t intended to provide.

Jeremy Wyatt From World Cruising Club Speaking…

And, are there any other things that the Bluewater Yacht Insurance is different from the kind of Insurance people would normally be buying if they’re just sailing, maybe in UK Waters or European Waters?

Dave Andrew From Admiral Marine Speaking…

Well, amongst the things that you need to take into account and again that I take into account when I’m assessing the risk is the number, age and experience of the crew on board. We’re quite comfortable usually insuring double-handed crew, but it’s depressing when you talk to an Insurance person because we’ll only ever tell you about the bad things, we never hear about all the good things that go on. And, some of the bad things that go on, for example, Catastrophic Electrical Failure when all you’ve got is an Auto Helm. You’re in the middle of the Atlantic or in the middle of the Pacific and it’s just two of you on board. That’s an awful long way to have to hand steer and that’s when accidents happen, that’s when Boat Insurance Claims can happen. So, there’s a lot of assessment goes on before I’ll set a premium and terms for any given risk.

Jeremy Wyatt From World Cruising Club Speaking…

So, in the case of double handlers, might you consider the equipment they’ve got on board the Boat as part of that interview process?

Dave Andrew From Admiral Marine Speaking…

Certainly, I mean one of my automatic questions to double handlers is what methods of self steering do you have and if the answer comes back that they have a Wind Vane that is in essence a third crew member. Particularly, useful when it doesn’t talk back and doesn’t eat.

Jeremy Wyatt From World Cruising Club Speaking…

And, uses no power of course.

Dave Andrew From Admiral Marine Speaking…

And, uses no power.

Jeremy Wyatt From World Cruising Club Speaking…

I know some cruisers on Catamarans and bigger Boats also do fit a second autopilot, so they effectively have redundancy for their system, which is another consideration.

Dave Andrew From Admiral Marine Speaking…

If, there is sufficient redundancy built in, again questions we ask and answers, that we will take on their own merit each time.

Jeremy Wyatt From World Cruising Club Speaking…

Does it make a difference whether boats are crossing oceans or just cruising in interesting areas?

Dave Andrew From Admiral Marine Speaking…

Interesting areas such as French Polynesia, for example, they are still to the Insurance market regarded as Bluewater, so they are still expensive places. If, you’re looking, for example, at taking time out in Australia or New Zealand breaking up a World ARC circumnavigation, then premiums will come down for the time you’re in those first world countries.

Jeremy Wyatt From World Cruising Club Speaking…

So, it’s not a fixed activity really. As the Boat moves then, are you suggesting that the client should keep in contact with the Yacht Insurance Broker and stay engaged with their cruising progress?

Dave Andrew From Admiral Marine Speaking…

Certainly, it always helps to keep lines of communication open, we work on the basis of understanding a person’s itinerary for a given policy year and will set a premium according to that. If it changes, if the plans change, then so can the policy and the premium could go up or down. My, recommendation would always be only to buy insurance for an area, that you know you are going to need. If there is any doubt as to your future plans, discuss them, but don’t buy the cover for them until you know they’re going to happen.

Jeremy Wyatt From World Cruising Club Speaking…

So, it’s possible once you’ve started a policy, to add on a geographic region. If, you then decide you’re going to go maybe, the Mediterranean for example, you can top up in that sense?

Dave Andrew From Admiral Marine Speaking…

It’s far easier, to add, than it is to take away. But, adding is certainly not a problem. One, thing that you should look out for with any Yacht Insurance Company, is what they might charge on top of their premium. Do they, for example, charge mid-term fees for any policy amendment? Admiral Marine – Yacht Insurance & Boat Insurance doesn’t, but I do know that there are companies out there who do.

Jeremy Wyatt From World Cruising Club Speaking…

That’s a useful question to ask when buying a Yacht Insurance Policy, is if I change it, am I going to get charged for the privilege of changing it.

Dave Andrew From Admiral Marine Speaking…

Exactly.

Jeremy Wyatt From World Cruising Club Speaking…

What about if I go out and buy maybe a new Dinghy and, Outboard, will that change my Yacht Insurance?

Dave Andrew From Admiral Marine Speaking…

Fractionally, we specify the Make, Model and Value of a Dinghy and an Outboard Motor, so if you replace some old kit with new, it’s always worth letting your Yacht Insurance Company know. If, it doesn’t make a tremendous difference to the Value under the policy, then there’s probably going to be no charge. But, always let your insurers know about changes of that nature.

Jeremy Wyatt From World Cruising Club Speaking…

What about when I leave my lovely Cruising Boat in the beautiful part of world say the Caribbean, for example, do I need to tell my insurer that I’m leaving it there?

Dave Andrew From Admiral Marine Speaking…

You, don’t necessarily need to tell your insurer, if you are leaving a Boat there for any length of time. But, different insurers will have different requirements, for what you must do to look after the Boat whilst you’re away. Most policies, will say that a Boat needs to be left in a safe and suitable place, when it’s not underway. That’s a little bit woolly so we add to that, that if you are leaving a Boat for more than 30 days, you actually need to make sure you’ve got somebody contracted to keep an eye on it. In the Caribbean, for example, if you’re leaving her afloat, make sure that the lines are secure, make sure that she’s aired. That’s equally true of Boats ashore, definitely worth having somebody go on board, once every couple of weeks, once every three weeks, just to check everything is in order. We had a horrible story of a client who left his Boat ashore somewhere in the Caribbean, flew back home for six months, returned to the Boat where nobody had been looking at it throughout the period and found that all of the interior joinery had turned to sawdust. He’d, been infected by termites and that’s not an insured peril.

Jeremy Wyatt From World Cruising Club Speaking…

So, what would be the risks that were covered, if I was to leave my boat in a boat yard in the Caribbean?

Dave Andrew From Admiral Marine Speaking…

Let’s put the Hurricane Insurance risk aside for one moment and just talk about general risks. There is a risk of toppling which is covered; lightning damage is possible, fire is always a possibility. So, you are still insuring what is a considerable investment for you, whilst she is sitting going nowhere.

Jeremy Wyatt From World Cruising Club Speaking…

So, what about Hurricane Insurance for the Caribbean?

Dave Andrew From Admiral Marine Speaking…

It’s now virtually impossible to obtain that cover as standard from any Yacht Insurance Company in the UK. One or two will offer it as an extension, but that cover is going to be prohibitively expensive and, it will carry some fairly onerous terms along with it.

Jeremy Wyatt From World Cruising Club Speaking…

So, basically it’s possible, but quite difficult. So, if most people don’t have Hurricane Insurance or Named Storm Cover, what would you advise a client looking to keep their boat in the Caribbean for the summer season?

Please Note: For more information, please see our News Article – Named Windstorm Yacht Insurance Cover – Questions and Answers

Dave Andrew From Admiral Marine Speaking…

To, research where they want to keep their boat during the hurricane season, to minimize the risk to themselves.

Jeremy Wyatt From World Cruising Club Speaking…

And, are there some locations that are better than others?

Dave Andrew From Admiral Marine Speaking…

We know a number of locations. Certainly, I would look in the southern Caribbean, Grenada, Carriacou and Trinidad to an extent. Moving, further west to the ABC Islands and of course if people’s long-term plans are perhaps to head even further west through the Panama Canal, then there are some good yards in Colombia and good facilities in Panama.

Jeremy Wyatt From World Cruising Club Speaking…

So, in summary you would say to people plan ahead, plan where you’re going to lay up and talk to your broker?

Dave Andrew From Admiral Marine Speaking…

Exactly and certainly we have plenty of experience of facilities throughout the Caribbean and we’d be more than happy to share that knowledge with individuals.

Jeremy Wyatt From World Cruising Club Speaking…

Any advice, about how you lay the boat up in the Caribbean, in the summer?

Dave Andrew From Admiral Marine Speaking…

The Best Way Of Laying Up A Shore, is to put the boat in a cradle and make sure that she’s tied down, to ground anchor points. You need to remove any loose items, any sales apart from main sales, furled in-mast or in-boom need to come off and be stored below. And, as I mentioned, get a Guardianage Contract to keep an eye on her for the non-hurricane problems.

Please Note: For more information, please see our PDF Guide – Laying Up A Shore In The Caribbean.

Jeremy Wyatt From World Cruising Club Speaking…

So, making sure your batteries are topped up and someone’s checking on the boat?

Dave Andrew From Admiral Marine Speaking…

Yes.

Jeremy Wyatt From World Cruising Club Speaking…

Of course, in the Caribbean keeping it aired is important, as well. A good boat yard, should be able to offer these kind of Guardianage Services, shouldn’t they?

Dave Andrew From Admiral Marine Speaking…

A good boat yard will or there are specialist Guardianage Services. Again, we know some in various locations, throughout the Caribbean.

Jeremy Wyatt From World Cruising Club Speaking…

Any other specific points a cruiser should be looking for in good Bluewater Yacht Insurance?

Dave Andrew From Admiral Marine Speaking…

An insurer, who understands what that cruiser wants and, what that cruiser is trying to achieve. And, an insurer who is able to communicate with you virtually 24/7 and, via whatever means is most suitable for you given your circumstances.

Jeremy Wyatt From World Cruising Club Speaking…

So, in particular you’re going to be dealing with flaky email connections and wobbly satellite links, aren’t you?

Dave Andrew From Admiral Marine Speaking…

Exactly, so understanding that if somebody’s got a flaky satellite connection; don’t try sending a large photo to them, just simple things that make all the difference.

Jeremy Wyatt From World Cruising Club Speaking…

Another option, for keeping a boat on the other side of the Atlantic for Europeans, is to go up to United States and Canada. Is, that something that an Admiral Marine – Yacht Insurance & Boat Insurance Policy, would cover?

Dave Andrew From Admiral Marine Speaking…

Yes, if that’s within somebody’s requirements, we can certainly accommodate that. Again, the issue is Hurricane Cover. We would suggest storing above Cape Hatteras, to keep well out of the way of the Hurricane area, on the East Coast of the US.

Jeremy Wyatt From World Cruising Club Speaking…

So, are there any other Bluewater Yacht Insurance exceptions a cruiser should be aware of, perhaps for example going into Australia or New Zealand?

Dave Andrew From Admiral Marine Speaking…

Australia is an excellent example, beautiful cruising grounds and nothing particularly untoward in terms of Boat Insurance Coverage. Except, that authorities and marinas there are looking for a minimum Third Party Liability Cover, of up to 10 Million Australian Dollars. So, make sure that your Yacht Insurance Company can provide that cover; we’re even seeing that to an extent now in New Zealand, with 10 Million New Zealand Dollars being required by some marinas.

Jeremy Wyatt From World Cruising Club Speaking…

So again, it’s a good reason to keep in regular contact with your Yacht Insurance Broker, as your plans change?

Dave Andrew From Admiral Marine Speaking…

Very much so and the other thing that’s worth doing if you are thinking about going Bluewater, is to establish a relationship with a Yacht Insurance Company, sooner rather than later. Even, if you’re going to spend a year or two in home waters before you set off, establish the relationship in advance. Again, it helps everybody.

Jeremy Wyatt From World Cruising Club Speaking…

Do you insist on specific qualifications, from a boat owner or, how are you measuring their experience?

Dave Andrew From Admiral Marine Speaking…

Some do, but we are far more interested in practical experience, than formal qualifications. Qualifications; help to back up experience, but it is experience that counts to us.

Jeremy Wyatt From World Cruising Club Speaking…

And, would that be certified log books? How are you measuring the competence of a prospective insurance risk?

Dave Andrew From Admiral Marine Speaking…

Insurance has always been based on a principle of what we call utmost good faith and it is simply trusting the word of your proposer that the information they are giving you is correct. We have the option to seek clarity if we want to.

Jeremy Wyatt From World Cruising Club Speaking…

And, that’s a good point to make isn’t it, that if false information is provided it would invalidate a Yacht Insurance Policy?

Dave Andrew From Admiral Marine Speaking…

Very much so, yes! Always tell the truth, don’t think that the truth hurts, and don’t think that any Yacht Insurance Company is trying to catch you out. We’re just trying to understand the risk and provide a Yacht Insurance Policy that will cover you if anything goes wrong.

Jeremy Wyatt From World Cruising Club Speaking…

Are there any other particular points of Bluewater Yacht Insurance that cruisers should understand in their policy, maybe unusual wording or things that they wouldn’t have found in a regular weekend sailors policy?

Dave Andrew From Admiral Marine Speaking…

There’s nothing that springs readily to mind. One thing that does occur to me though is single handing and you probably find most policies will limit the extent of single-handed sailing. We typically will offer no more than 250 nautical miles per uninterrupted passage. For some people, if they are looking at single-handing long distances, that’s not going to be sufficient. And, they do need to make very very clear to the Yacht Insurance Company from the outset, if they are intending to single hand for long periods.

Jeremy Wyatt From World Cruising Club Speaking…

But certainly, if I want to move my Boat on my own from the anchorage round into my boat yard birth for example, that’s single handing that’s going to cover it?

Dave Andrew From Admiral Marine Speaking…

It’s single handing, that’s absolutely fine, if you’re not actually putting to sea. If you’re, just motoring within the confines of a port or a harbour or whatever, that’s accepted practice.

Summary…

We hope you enjoyed the Online Seminar Series Video Part 1 – Marine Insurance Explained and if you would like to see the second video in the series please visit – Online Seminar Series Part 2 – The Marine Insurance Claim Process.

If you’re interested in Bluewater Yacht Insurance and would like to get a Yacht Insurance Quote for your Bluewater Cruising plans then please, complete our Get A Quote Form and our friendly, and experienced team will get back to you.

We’d like to thank the World Cruising Club for helping to put together this video series and we very much hope it has helped answer specific questions in more detail for Bluewater Cruising Yacht Owners in the UK, Europe and around the world.

If you have any further questions about Bluewater Yacht Insurance, ARC Rally Insurance, World ARC Rally Insurance or just general Yacht Insurance for the UK or Europe, then please don’t hesitate to Contact Admiral Marine and our team will be happy to help you.

Sailing Yacht Insurance

Yacht Insurance for UK & European Waters

WCC Rally Insurance

World Cruising Club Rally Insurance

Bluewater Yacht Insurance

Insurance for Bluewater Cruising Yachts

Motor Yacht Insurance

Motor Boat Insurance for UK & European Waters

Cornish Crabber Boat Insurance

Yacht Insurance for Crabbers & Shrimpers

RIB & Day Boat Insurance

RIB Insurance & Day Boat Insurance

  • Get A Quote

  • Please complete our boat insurance quote form online

  • Get A Quote
  • Contact Us

  • Call us on +44(0)1722 416106. Find full contact information and location by clicking the button below.

  • Contact Us