Navigating Common Claims in Yacht Club Insurance

Whether your client is a seasoned yacht club owner or a brand-new yacht club manager, tackling insurance claims can feel like sailing through stormy seas. This is where yacht club insurance and your expertise as an insurance agent come in. 

In this blog, we will explore common claims in yacht club insurance and equip you with valuable insights and strategies for handling claims with finesse.

Understanding Yacht Club Insurance

As the name implies, a yacht club insurance program is a specialized boat coverage designed specifically for yacht clubs and their members. From protecting the club’s valuable assets to providing coverage for the personal vessels of esteemed members, yacht club insurance has your clients’ backs. 

Common Claims in Yacht Club Insurance

Certain types of claims in yacht clubs tend to arise more than others. Here are some of the most common ones.

Property Damage Claims

If a member’s boat gets damaged due to a collision with another boat, they may file a property claim. You should ensure your client’s policy has adequate coverage that includes coverage for repair or replacement costs in case such an occurrence happens.

Liability Claims

A liability claim refers to a situation where a member or a third party holds the yacht club responsible for causing damage, injury, or loss to them or their property. Insurance agents should emphasize the importance of carrying comprehensive general liability coverage to protect against potential lawsuits and legal expenses resulting from such claims.

Watercraft and Vessel Liability Claims

Yacht clubs frequently organize races, regattas, and other boating events. Given the nature of these types of activities, accidents are within the realm of possibility. 

To protect yacht clubs against potential accidents, insurance agents should ensure their policies cover watercraft and vessel liability.

Liquor Liability Claims

If someone ends up intoxicated, causing harm to themselves, others, or property, they may hold the club accountable for overserving alcohol or not taking precautions. To avoid such liability, having liquor liability coverage is essential. 

Navigating Claims Successfully

No yacht club owner wants to have to file a claim, but should it become necessary, there are ways to ease the burden for your clients. Providing personalized claims assistance and support to yacht clubs during the claims process can help them navigate the process smoothly. You can be a source of support by letting them know what documentation to gather, walking them through complex legal requirements, and communicating effectively with insurers to facilitate an uneventful claims resolution.

Before claims occur, you can also help them avoid future issues by taking the following steps: 

1. Conduct a thorough risk assessment. Take the time to identify potential hazards and vulnerabilities for yacht clubs. This assessment helps with tailoring coverage options to meet the club’s specific needs.
2. Encourage education and safety programs. Invite yacht clubs to implement safety protocols, training programs, and regular inspections to minimize the likelihood of accidents. Proactive risk management measures can also help reduce the frequency and severity of claims.
3. Conduct policy reviews. Regularly review and update yacht club insurance policies to ensure they reflect the club’s evolving needs and activities. As new events, facilities, or services emerge, insurance coverage should be adjusted. 

Conclusion

In summary, navigating insurance claims in yacht clubs calls for an in-depth understanding of the risks involved in order to provide comprehensive coverage. By being closely familiar with property damage, liability, watercraft and vessel, and liquor liability claims, agents can easily guide yacht clubs and ensure their clients have the best yacht club insurance policy in place.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ business and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.