Protecting Yacht Clubs Against Risk

Protecting Yacht Clubs Against Risk

yacht club liability coverage

Yacht clubs are faced with many different exposures and therefore need several forms of insurance to cover these concerns. Perhaps one of the first policies to be considered is a commercial package policy, which can provide several different types of coverage in one policy. It’s really a matter of having the right yacht club liability coverage to address the different concerns of your daily operations.


The convenience of a commercial package policy


The primary coverage found in this policy is a commercial property policy that protects against fire and other hazards. This part of the coverage can cover the building, contents and any loss of business income from such customary losses, including wind, explosion, vandalism, and of course, fire. It can also include an inland marine floater designed to cover mobile property such as radios, trophies and assorted extraneous items.


Routinely, another part of the policy is for general liability. Like most general liability policies this coverage is very broad in nature, but still won’t protect your business from the many different types of liability concerns to members, visitors, and the general public, that you may experience during normal club operations.


Coverage for employee dishonesty is also available to protect the club from losses associated with employee theft, such as that of property or money being stolen or otherwise going missing.


A protection and indemnity policy can be added separately that provides broader coverage than the general liability policy and can be endorsed to include the Jones Act coverage, since the club could be open to exposures under the Jones Act for employees that are considered master or crew of a club owned vessel. Hull insurance, which many consider to be vital, can also be purchased separately.


There are many liability concerns and they cannot all be addressed with a single policy. For example, many yacht clubs have a dock with slips available to members and this presents an exposure to clubs similar to a marina. The club has a duty and responsibility to provide a safe and secure mooring and will purchase a marina operator liability policy as part of their yacht club liability coverage which covers boats and marine items of others that are in your care, custody, or control.