A waiver of subrogation is a term yacht owners know about and will likely sign to insure their boat. Most yacht owners take pride in their vessels and go to great lengths to protect them. Yacht insurance is the easiest way to invest in protection because a policy can cover the cost of certain damages. For example, if you collide with another watercraft, this type of coverage can ensure that your vessel has reparations. Most insurers offer this service through a process called subrogation.
What to Know About the Waiver of Subrogation
Find out why a waiver of subrogation is essential.
Understand Yacht Insurance Coverage
Standard yacht insurance offers watercraft liability coverage for accidents and damages you may be responsible for. Comprehensive coverage offers more protection and covers your vessel in other incidents. Suppose you need to use your comprehensive yacht policy to cover the cost of repairs after an accident. In that case, you will notify your insurer of the accident, and they will coordinate the repairs.
What To Expect From the Subrogation Process
When you notify your insurer that your yacht was in an accident, you don’t have to pay out-of-pocket, and you don’t have to wait for the other boater’s yacht insurance to approve a claim. It’s certainly convenient, and this convenience is the result of subrogation. Subrogation is the behind-the-scenes process wherein your insurer covers the cost of your repairs and then seeks reimbursement from the other boater’s insurer. Policyholders aren’t directly involved in this process, but it can still affect you in a few ways.
Benefits of Waiving Subrogation
A waiver of subrogation is a provision within your yacht insurance contract that revokes your insurer’s right to collect compensation from another party or insurer. Do you need a waiver of subrogation, and if so, what are the benefits of adding one to your policy? This clause is not necessary for every boater, but it can eliminate the risk of litigation after an accident. It can also maintain friendly relationships between the parties involved. For some policyholders, this offers peace of mind, a worthwhile investment.
Managing Liability With a Waiver of Subrogation
How will it impact your liability if you choose to include a waiver of subrogation in your yacht insurance? Does waiving your insurer’s right to subrogation mean you won’t receive prompt repairs or reimbursement? In most cases, you can add a waiver of subrogation to your policy without negatively affecting your coverage. Your insurer should still cover the cost of repairs and other expenses rather than seek compensation from another party. They will absorb the cost of the damages.
Adding a Waiver of Subrogation to Your Yacht Insurance
Adding a waiver of subrogation to your yacht insurance is relatively simple. You should speak to your insurers and let them know that you wish to modify your policy. Because this addendum prohibits your provider from seeking reimbursement, they accept increased risk. For this reason, insurers typically charge a fee to add a waiver of subrogation to a policy. Get in touch with your insurance agent to determine the fee and get started.
About Mariners Insurance
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.
