Superyacht Insurance

What is superyacht insurance?

Superyacht insurance is the specialist marine programme that sits behind every professionally operated large yacht. It is rarely a single policy. Most owners run two core covers in parallel, plus a stack of supporting lines.

Hull and machinery (H&M) covers physical loss or damage to the vessel itself: the hull, superstructure, engines, generators, electronics, tenders, and the equipment that lives aboard. It responds to grounding, collision, fire, heavy weather, theft, and salvage costs. The policy is written against an agreed insured value, set at delivery or renewal, and adjusted at refit.

Protection and indemnity (P&I) covers third-party liability: crew injury and illness, pollution from a fuel or oil spill, wreck removal, damage caused to other vessels, marinas, or port infrastructure, and legal defence costs. P&I limits on a 40 to 80-metre yacht typically run into the hundreds of millions of euros.

Most superyacht programmes also bolt on crew medical and repatriation, war and strikes, kidnap and ransom for higher-risk cruising areas, and charterers' liability on charter-active yachts. The market is concentrated: Lloyd's of London syndicates underwrite a large share of the world's superyacht hull risk, alongside AXA XL, Pantaenius, EFG Marine, and Skuld, with brokers such as Aon and Willis Towers Watson placing the cover.

Why it matters for yacht owners

For an HNWI buyer, the insurance programme is both the largest fixed line in the annual budget after crew, and the largest single piece of risk transfer on the balance sheet. A poorly placed policy can leave an owner personally exposed to a wreck-removal bill or a crew injury claim that runs into eight figures.

Underwriters price on the same factors that drive resale value: class certificate in good standing, flag-state compliance, a captain certificated for the tonnage, a documented maintenance history, declared cruising area, and an agreed lay-up period. Yachts that fall out of class or breach navigation limits can find cover voided at the moment of claim. Owners should retain a specialist marine broker.

Key facts

• Two core covers: hull and machinery (H&M) for the vessel, and protection and indemnity (P&I) for third-party liability.
• H&M annual premiums typically run around 0.5 to 1.0% of insured value.
• P&I limits on a 40 to 80-metre yacht commonly run into the hundreds of millions of euros to cover pollution and wreck removal.
• Lloyd's of London syndicates dominate hull capacity, alongside AXA XL, Pantaenius, EFG Marine, and Skuld; Aon and Willis Towers Watson are leading brokers.
• Underwriters require maintained class, flag-state compliance, a captain certificated for the size, declared cruising area, and an annual lay-up period.
• Standard exclusions include wear and tear, gradual deterioration, unclassed refit work, and operation outside the agreed navigation limits.
• Crew cover is governed by MLC 2006; medical, repatriation, and disability benefits are compulsory on commercially registered yachts.
• Lloyd's 2025 marine commentary flags fires and extreme weather as dominant drivers across the wider hull book.
• War, strikes, kidnap and ransom, and cyber are placed as separate lines on top of the core H&M and P&I covers.