Ironshore Sets Course for Luxury Yacht Business

PRODUCT: Luxury yacht program

COMPANY: Ironshore Indemnity Inc.

BEST RATING: A (Excellent), Size XIV

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: Larger yachts call for a comprehensive insurance solution, according to Ironshore, due to the complexity of the yacht, crew coverage requirements, cruising itinerary and charter needs.

Luxury, mega and super yachts domiciled in U.S. waters might cruise outside U.S. waters to Mediterranean, Caribbean or other ports for months at a time, says James Bishop, product line manager, Ironshore. This creates exposures which owners of smaller yachts and boats may not face.

And the risks only expand with the size of the yachts. Exposures “can get really complicated and intricate the larger they get,” Bishop says. That’s thanks to features such as navigation systems and communication equipment, as well as tenders and personal watercraft, water “toys,” fine arts and other personal property owners keep or bring on board.

Ironshore’s offering is a comprehensive program for yachts of $750,000 up to $20 million in hull value, and up to $20 million protection and indemnity coverage. Ironshore’s team of underwriters for large yachts can assist brokers in creating a customized solution to fit the needs of each yacht owner, Bishop says.

UNDERWRITING: The program offers all-risks, agreed-value coverage. This includes hull coverage, tenders and personal watercraft, towing and assistance, additional living expenses, fine arts coverage, navigation and communication equipment, hijack and kidnap coverage, precautionary measures to assist with storm preparation, loss of charter hire and immediate coverage for newly acquired yachts. Protection and indemnity coverage is for crew, environmental damage coverage and fines, and search and rescue. Ironshore provides legal defense in addition to the protection and indemnity limit.

Additional coverage includes personal property of the owner, guests and crew, passport recovery and fishing tackle stored onboard and ashore. The program also covers medical payments and uninsured boaters.

In addition to the luxury yacht program, Ironshore offers a watercraft endorsement for its high-value homeowners policy through managing general agents. Through the National Boat Owners Association, Ironshore also offers a program for watercraft up to $750,000 in value.

MINIMUM PREMIUM: None. Hull values for luxury yachts typically generate premiums of $2,500 and higher.

TARGET: Owners of luxury yachts, mega yachts, high-end sportfish boats, larger sailboats and cruising trawlers. Ironshore defines “boats” as vessels less than 27 feet in length, while yachts are typically 27 feet and larger. “Luxury yachts” typically begin at about 50 feet, “mega yachts” at 80 and “super yachts” at 200.

COVERAGE TERRITORY: All states except Alaska and Hawaii. Coverage is available for U.S. owners of yachts kept in international locations.

CONTACT: James Bishop, product line manager, yacht division; Ironshore, 970 Lake Carillon Drive, Suite 300, St. Petersburg, FL 33716; 727-290-2601.

Ronimarie Acord is an IA contributor.