The George Group, in partnership with Howden, continues to grow our book of yacht business in the Asia Pacific region. Aside from cruising insurance we provide bespoke programmes for Yacht Builders Risks and Ship Repairers Liability insurance. Increasingly, underwriters are specifying what they need to ensure cover continues while a yacht is in a yard.

Waivers, Contracts and Cover at Risk

Even where it should be, if this is not stated clearly it is implicit that an insured makes sure the yard is sufficiently insured for its liabilities and that no waivers are signed without the explicit permission of insurers. If either condition is not met, cover for the yacht can be in jeopardy.

Many times, we have been told by owners and captains that they have not signed waivers — though on closer inspection of the yard contract, waivers remain in place and have been agreed to by signing the contract. In one case I reviewed a five-page contract that contained 17 separate waivers within it. On another occasion, I was assured that a yard carried insurance cover, and on pressing the point, the captain was sent a property fire policy — written entirely in Thai. To my knowledge the captain did not speak Thai, yet was signing a contract on behalf of the owner.

“A property fire insurance policy covers the yard itself. It is NOT a Ship Repairers Liability policy — which covers a yard and its workers for their liabilities to yachts in the yard.”

— Colin Dawson, The George Group

It is also important to understand whether sub-contractors are covered under the yard’s policy or not. In many cases, they are not.

The Challenge of Short Notice and Sub-Contractors

In Europe, most yards will not allow sub-contractors on site unless they can prove they have insurance cover in place. This is not necessarily the case in Asia. Another challenge is that we are usually given only a few hours’ notice that a yacht will be going in for work — leaving precious little time for proper discussion, examination of documents and agreement by insurers.

It should be noted that insurers need to specifically agree — per the terms of cover given — not that they are simply notified. These are not the same thing.

What to Look For in a Quality Yard

A good quality yard will have all of this in place and will be open to transparent discussion. One that is not — and is probably offering a cheaper quote — should be avoided.

We will be happy to discuss the above in greater detail. Please feel free to contact Colin Dawson at colindawson@tgg.com.hk for any assistance.