Yacht insurance to go up because of six-fold increase on personal liability limits
Navigators and General warns that changes to rules on limitation of liability for yacht owners will mean an increase in premiums. Changes to the current rules are due to become effective by mid May 2004.
Under existing legislation, boat owners and their insurers may limit their liability for damage to property and personal injury to around 205,000 pounds sterling. The new rules will increase this limit six-fold to approximately 1.22 million pounds sterling.
This will inevitably impact on premiums as predicted in Yachting Monthly (October 2003), particularly for those who are at increased risk of third party claims, such as owners of racing yachts, speedboats, charter boats, and larger yachts and motor cruisers. It is thought that premiums for these boat owners could increase by between 100 – 200 pounds sterling per annum.