If you have a yacht, you need yacht insurance. It’s arguably as important as the hull, stern, deck, anchor, and every other component on your vessel.

Whether you’re a seasoned yacht owner or considering your first purchase, knowing what yacht insurance typically includes can help you make informed decisions about protecting your vessel and your financial security.

What Is Yacht Insurance?

Yacht insurance is specialized marine coverage designed to protect high-value recreational vessels, their owners, and passengers from financial losses due to accidents, damage, liability, and other risks unique to yachting. 

Years ago, a yacht owner might have been happy with basic hull coverage. But today’s yacht insurance offers comprehensive protection packages that address the complex needs of modern yacht ownership.

Coverage matters more than ever as yachts incorporate cutting-edge technology (think: expensive to fix) and thus command higher values. Yachts also face evolving risks — everything from climate change to increasingly crowded waterways.

Standard Yacht Insurance Coverage

Hull and equipment protection forms the foundation of yacht insurance. It’s typically written on an agreed-value basis that guarantees full reimbursement without depreciation if your yacht is totaled. This includes all permanently attached equipment and machinery.

Personal effects and onboard gear coverage protects (as you would expect) personal items — from the clothing in your suitcase to expensive fishing equipment. Medical payments coverage handles any injuries to you, your passengers, and crew members, regardless of fault. Meanwhile, uninsured boater coverage protects you in the event of an accident with an inadequately insured vessel.

Legal liability coverage is standard for bodily injury and property damage you cause to others, along with pollution liability for fuel spills and environmental damage that your yacht may create. Wreck removal coverage pays for salvage and removal costs if your yacht sinks or becomes a navigation hazard.

Most policies now also include broad navigation limits with worldwide coverage, reflecting the global nature of modern yachting. Specific geographic restrictions may apply, depending on your cruising plans.

Optional Coverages for Yacht Owners

Beyond standard protection, yacht owners can customize policies with specialized coverages that go beyond standard limits.

• ‍Captain and crew liability: This coverage protects against captain errors, like running into a pier or another yacht, as well as claims made by crew members for injuries sustained while working on your boat.‍
• Trailers and tenders: This coverage safeguards smaller boats and trailers.‍
• Uninsured boaters: If an uninsured or underinsured boater collides with your craft, you’ll be protected.
• Non-emergency towing: Ran out of fuel in the middle of nowhere? This coverage assists when you need your yacht towed to shore in a non-emergency situation.‍
• Jet Skis: Have a Jet Ski that you’re using while yachting? Optional coverage would protect you if something goes wrong.
• Destructive weather: Windstorm extra expense reimburses costs for emergency haul-out and storage, which may put your mind at ease if you live in an area where you’re frequently monitoring a hurricane.
• Trip interruption coverage: This coverage will compensate you for canceled charter fees or vacation expenses when a mechanical breakdown or covered losses disrupt your plans.

There are still other optional considerations to mull over. If you cruise to Mexico, specialized Mexico watercraft liability insurance ensures compliance with local requirements. Umbrella liability policies also provide additional protection beyond your primary yacht policy limits, essential for high-net-worth individuals facing exposure to catastrophic claims.

How Do You Choose the Right Yacht Insurance Policy?

Selecting appropriate coverage requires evaluating several key factors, such as your yacht’s age, size, and frequency of use. Older yachts typically require a recent marine survey to establish condition and value before insurers will quote coverage.

Consider where you’ll sail. For instance, domestic cruising requires different coverage than international passages or liveaboard lifestyles. Luxury vessels equipped with advanced electronics, entertainment systems, and custom finishes need customized coverage that accounts for these high-value features. Standard policies may not adequately protect sophisticated equipment and unique modifications that dramatically increase your yacht’s value.

The basic rule of thumb: The more you use your yacht, and the more expensive it is, the more insurance you probably need.

Protecting Your Yacht in 2025 and Beyond

Understanding the distinction between standard and optional coverages empowers you to build a policy that truly protects your investment. While standard coverage provides solid foundational protection, optional add-ons ensure your policy reflects your yacht’s unique characteristics and your cruising lifestyle.

Working with an expert provider who specializes in marine insurance ensures you receive tailored coverage that addresses your specific needs. Contact Mariners today to chart the right course with yacht insurance that protects your vessel and your peace of mind on the water.

About Mariners General Insurance Group

Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide — in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs — trust Mariners Insurance. Call us at (888) 402-5018 any time you have questions or concerns about insurance for your vessel or marine business.