Chubb Yacht Insurance: What Florida Owners Need to Know

Hull and Machinery: What Your Policy Actually Covers

Hull and machinery (H&M) cover is the foundation of any yacht policy. It responds to physical loss or damage to your vessel — grounding, collision, fire, sinking, theft of the vessel itself, and machinery breakdown caused by a covered peril. The scope of cover matters as much as the sum insured: an agreed-value policy pays the stated hull value without depreciation deduction if the vessel is a total loss, while an actual cash value policy applies depreciation. For a yacht of any real value, agreed value is the standard you should insist on.

The Inchmaree clause — named after a 19th-century English case — extends hull cover to loss caused by the negligence of a master, officer, or crew member, and to latent defects in machinery or hull. Without it, a mechanical failure caused by a crew error could fall outside your cover. Confirm it is included, not just referenced, in your policy wording.

Sue-and-labour provisions require you to take reasonable steps to prevent or minimize a loss once a covered peril has occurred, and they reimburse you for the reasonable costs of doing so. If your yacht goes aground in the Bahamas and you hire salvors to pull her off before she breaks up, those costs should be recoverable under sue-and-labour even if the underlying damage is ultimately below your deductible. Know this clause before you're standing on a reef at low tide.

Named Storm Deductibles and Your Hurricane Plan

The single most consequential coverage term for a Florida-based owner is the named storm deductible. Unlike your standard deductible — which applies to everyday incidents — a named storm deductible activates the moment the National Hurricane Center names a tropical system, and it is typically expressed as a percentage of the agreed hull value rather than a flat dollar amount. The difference between a well-structured policy and a poorly structured one can be substantial when a major storm makes landfall near Fort Lauderdale or Tampa Bay.

Most specialist underwriters will require a hurricane plan as a condition of cover. Your plan specifies where your vessel will be during the Atlantic hurricane season (June 1 through November 30), whether that means a named hurricane hole in the Bahamas, a covered marina berth in South Florida, or hauling out and blocking ashore. The plan is not a formality — if your vessel is damaged in a named storm and it was not in the approved location, your claim can be denied or your deductible can increase. File your hurricane plan before June 1, update it if your plans change, and keep a copy aboard.

Some policies offer a reduced named storm deductible if the vessel is hauled out and blocked ashore at an approved yard during the peak of the season. If you're planning a summer in the Mediterranean or the Pacific, confirm with your broker how the named storm provision applies when the vessel is outside the Atlantic basin — the answer varies by policy and underwriter.

Navigation Limits: The Bahamas, the Caribbean, and the Gulf Coast

Your navigation limits define where your hull and liability cover is active. A Florida-based policy typically covers the US East Coast, the Gulf of Mexico, the Bahamas, and the Caribbean — but the precise boundaries matter. Some policies exclude Cuba, some require an endorsement for passages south of a specific latitude, and offshore passages beyond a certain distance from shore may require a licensed captain aboard as a condition of cover.

If you're planning a Bahamas crossing, confirm that your policy covers the Gulf Stream passage and the Bahamian waters you intend to cruise. If you're heading to the Eastern Caribbean — Antigua, St. Lucia, Grenada — check whether your navigation limits extend that far and whether any additional premium or endorsement is required. Underwriters view the Eastern Caribbean differently from the Bahamas, partly because of distance from repair facilities and partly because of the hurricane exposure profile.

Extended cruising to Central America, the Pacific, or transatlantic passages will almost certainly require a specific voyage endorsement or a blue-water policy. Bring your intended itinerary to your broker before you depart, not after you've already cleared customs in a foreign port.

Protection and Indemnity: Your Liability Exposure

Protection and indemnity (P&I) cover responds to your legal liability to third parties — damage to another vessel, injury to a guest, injury or death of a crew member, wreck removal, and pollution liability. For a yacht operating in US waters, the liability exposure is real: US courts apply general maritime law, and claims from injured crew members can be substantial under the Jones Act if your vessel qualifies as a vessel in navigation with a crew member in service.

The Convention on Limitation of Liability for Maritime Claims (LLMC) allows shipowners to limit their liability to a figure based on the vessel's tonnage, expressed in Special Drawing Rights. In practice, for a mid-size yacht in US waters, limitation of liability under LLMC may not cap your exposure at a level that feels comfortable — particularly for crew injury claims. Your P&I limit should reflect the realistic worst-case scenario for your vessel size, cruising area, and the number of people you carry.

If you carry paying guests — even informally, even occasionally — your P&I underwriter needs to know. Carrying passengers for hire changes your liability profile materially and may require a separate commercial endorsement or a different policy structure entirely. Misrepresenting the use of your vessel is the fastest way to find yourself without cover when you need it most.

Captain, Crew, and Charter: Getting the Use Right

How you use your yacht and who operates it are two of the most important underwriting variables. If you operate your vessel yourself, your policy will specify the minimum experience or licensing requirements for the owner-operator. If you employ a professional captain — full-time, part-time, or delivery only — the policy needs to reflect that. A captain operating under a USCG Master's license on a vessel documented with the US Coast Guard is a different risk profile than an owner with a state boat registration and a weekend sailing course.

Crew medical cover and crew liability are separate from P&I. The Maritime Labour Convention 2006 (MLC 2006) sets international standards for crew welfare, including medical care and repatriation, on vessels that fall within its scope. Even if your yacht is not technically subject to MLC 2006, your crew has rights under US maritime law, and your policy should address medical expenses, disability, and death benefits for anyone working aboard. If you have a paid captain or crew, ask your broker specifically what your policy provides for them — and what it doesn't.

Charter use — whether bareboat, crewed, or occasional — changes your policy in ways that go beyond a simple endorsement. Your charter contract will almost certainly require minimum liability limits, and it may specify the policy structure required by the charter company or the flag state. If you're chartering your vessel in the Bahamas or the US Virgin Islands, the local regulatory environment adds another layer. Bring your charter agreement to your broker before you sign it, not after.

• Owner-operated with no paid crew: confirm experience and licensing requirements in the policy
• Professional captain employed: captain's credentials and license number required at binding
• Delivery passages: confirm whether a delivery captain endorsement is needed
• Paid crew aboard: crew medical, disability, and death cover should be explicit in the policy
• Charter use: provide the charter agreement, intended charter area, and expected annual charter days

What to Bring When You Request a Quote

Specialist underwriters price yacht cover based on the specific characteristics of your vessel and how you use it. The more complete your submission, the more accurately your broker can present your risk — and the fewer surprises you'll encounter at renewal or at claim time.

If your vessel has had prior losses, disclose them fully. Underwriters will check loss history, and an undisclosed claim discovered at the time of a new claim is grounds for voiding cover. If a prior loss was repaired properly and you have documentation, that documentation helps your case. If it wasn't repaired, that's a conversation to have with your broker before the underwriter finds it during a survey.

• Vessel details: year, make, model, LOA in feet, beam, draft, construction material, engine type and horsepower
• Current agreed hull value and basis of valuation
• US Coast Guard documentation number or state registration
• Home port and primary cruising area, including intended Bahamas or Caribbean passages
• Hurricane plan: where the vessel will be June 1 through November 30
• Captain and crew details: USCG license numbers, years of experience, ENG-1 or equivalent medicals if applicable
• Charter use: yes/no, crewed or bareboat, approximate annual charter days
• Prior loss history for the past five years
• Current survey (most underwriters require a survey within the past three to five years for vessels over a certain age or value)

Frequently asked questions

Do I need a survey before I can get a quote?

Most specialist underwriters require a current out-of-water survey for vessels beyond a certain age or above a certain hull value. A survey conducted within the past three to five years by an ABYC-certified or SAMS-accredited marine surveyor is typically acceptable. If your survey is older than that, budget for a new one before you approach renewal — an out-of-date survey can limit your options or result in conditions being attached to your cover. If your vessel is newer and under manufacturer warranty, a survey may not be required, but confirm this with your broker.

What happens if a named storm forms while my boat is in the Bahamas?

Your hurricane plan should address this scenario in advance. If your policy specifies an approved hurricane hole or requires the vessel to return to a US port during named storm season, you need to know the trigger — typically when the NHC names a system — and the timeframe you have to comply. If your vessel is in the Bahamas when a storm forms and you cannot move it to the approved location in time, contact your broker immediately. Document every decision and communication. Acting in good faith and in accordance with your sue-and-labour obligations matters to how a claim is handled.

Does my policy cover me if I take paying guests aboard?

Not automatically. A standard yacht policy is written for private pleasure use. If you carry passengers for hire — even occasionally, even informally — you need to disclose this to your underwriter. Depending on the frequency and structure of the arrangement, you may need a commercial endorsement, a separate charter liability policy, or a full commercial vessel policy. Operating as a charter vessel without the correct cover in place means your policy can be voided at the moment of a claim. If you're considering chartering your vessel, talk to your broker before you take the first booking.

How does general average work if my vessel is involved in a casualty at sea?

General average is a principle of maritime law — governed by the York-Antwerp Rules in most commercial contexts — under which all parties sharing a maritime venture contribute proportionally to losses incurred to save the voyage. On a private yacht, general average is most likely to arise if your vessel is involved in a salvage situation where the salvor's award is shared between hull and cargo interests. Your hull policy should respond to your general average contribution. If you're carrying cargo or personal property belonging to others, those parties may need their own insurance to cover their share. This is one reason why crew and guests carrying valuable personal property should have their own cover.

What do I need to do before my policy renews?

Start the renewal conversation at least 60 days before your expiry date. Review your agreed hull value — if your vessel has appreciated or you've made significant improvements, your current sum insured may be inadequate. Update your hurricane plan if your cruising plans have changed. Confirm that your captain's USCG license and any crew medicals are current. If you've had any incidents during the policy year, even minor ones that didn't result in a claim, disclose them. Underwriters view a clean, fully disclosed renewal submission far more favorably than one where information surfaces later.

Does my Florida yacht policy cover me in US Virgin Islands or Puerto Rico waters?

The US Virgin Islands and Puerto Rico are common destinations for Florida-based yachts, and many specialist policies include them within standard Caribbean navigation limits. However, confirm the exact boundaries in your policy wording rather than assuming. Some policies treat the Eastern Caribbean as a separate zone requiring an endorsement, and the hurricane exposure profile of the Eastern Caribbean — particularly during peak season — can affect the terms. If you're planning a season in the USVI or Puerto Rico, bring your itinerary to your broker and get written confirmation that your navigation limits cover the passage and the cruising ground.