When to Call a Yacht Insurance Broker

What to Know Before You Buy a Yacht

If you’re buying a yacht, or even thinking about it, I know you will have some questions around the insuring your new vessel. As a yacht insurance broker, I’ve helped hundreds of boaters insure their new yacht and the truth is, yacht insurance is much different than boat insurance. Once your vessel gets big enough, the insurance world changes, and it’s important to understand how.

Let’s break it down.

Boat Insurance vs. Yacht Insurance

Boat insurance is usually for smaller, trailerable vessels — like pontoons, bass boats, or runabouts. These boats are easier to operate and don’t usually travel too far offshore. Most insurance companies consider anything under 27 to 35 feet a “boat.”

But once you get past that size, especially above 35 feet, you’re entering yacht territory — and that’s where the insurance starts to look very different.

What Makes Yacht Insurance Different?

Here are a few key ways yacht insurance goes beyond boat insurance:

• Where You Keep It
  Yachts are usually kept in the water or rack stored at a marina. Most marinas require being listed as an additional insured on your policy and require minimum liability limits on your insurance policy, typically $500,000-$1,000,000 minimums.

• Fuel Spill Liability Limits
  Most yacht policies will include fuel spill coverage at the Oil Pollution Act Limits. Currently that limit is $1,076,000.

• Navigation Areas
  While most boat policies limit how far offshore you can go (often just 50-100 miles), yacht policies allow extended navigation. That includes travel to the Bahamas, Caribbean, or even a Great Loop.

• Marine Surveys
  Many yacht insurance companies require a marine survey, and sometimes an engine/mechanical survey, before they’ll insure the boat. The vessel will typically need to meet all ABYC Yacht Standards to be insurable.

• Captain Requirements
  Once your yacht is around 65 feet or larger, some insurance companies may require a licensed captain on board while the vessel is underway. We’ll need to collect a copy of their license and boater resume.

What About Hurricane Zones?

If you’re keeping your yacht in a hurricane-prone area, we will need to understand how you’ll protect the vessel. You may need to fill out a hurricane plan, detailing what steps you’ll take if a storm is approaching. These plans become part of the policy. Never had a hurricane plan before? Just ask, we can help guide you here.

If you’re cruising seasonally, they may also request a vessel itinerary. Some policies restrict yachts from being in certain areas (like south of Georgia) during peak hurricane season (July 1 – Nov 1).

Maritime Law Starts to Matter

Once you move into the yacht world, you’re no longer just dealing with state boating laws. Federal maritime law comes into play — especially when it comes to salvage, pollution, and international navigation. That means your insurance needs to be structured correctly to handle more complex risks and claim scenarios.

Not All Insurance Companies Are the Same

Some insurance companies only write policies for boats under a certain value. But for larger yachts, we work with specialty marine-focused companies like Chubb, Travelers, and American Modern. These companies offer:

• Higher liability limits

• Captain and crew coverage

• Extended navigation options

• More flexible terms for experienced owners

Planning to Finance Your Yacht?

If you’re purchasing your yacht with financing, there are a few extra steps involved and we’re here to help make them easy.

For starters, some lenders will require Breach of Warranty coverage, which protects their interest if the policyholder violates any part of the insurance contract. This type of coverage is not typically found in standard boat policies, but it’s often required on yacht policies.

We proudly partner with Apex Yacht Finance, a trusted lender that can finance both personal-use and charter yachts, up to $50 million in value. Whether you’re buying your first 45-foot cruiser or upgrading to a fully crewed 100-foot yacht, we can help connect the dots between your insurance and financing needs.

Why You Should Work With a Yacht Insurance Broker

Yacht insurance isn’t something you want to leave to a generalist. You want someone who:

• Knows the questions to ask

• Understands the difference between companies

• Helps you avoid coverage gaps

• Can match you with the right insurance company for your specific yacht and plans

That’s exactly what I do at On the Water Marine Insurance. I specialize in boat and yacht insurance.

Let’s Talk Before You Launch

Whether you’re closing on your first yacht or just exploring options, I’d love to help and answer your questions before they become problems. Give me a call or text on my cell phone (513) 653-3299 or email me at eric@onthewatermarine.com.

Remember to practice good boater safety, wear your life jacket, and as always; I’ll see you, On The Water!