Transatlantic Crossing

November 23, 2020

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Transatlantic Crossing

Thinking of crossing the Atlantic to visit the Caribbean? Thinking of doing the crossing single-handed? Regardless of how it is done, sailing across the Atlantic is not a simple feat and, if it is your first time, a lot of time and thorough preparation is needed.

Vessel seaworthiness:

Before anything else, is the vessel built for a transatlantic journey? Making sure the vessel is safe and ready for the voyage is priority number one. Investing in a survey along with reviewing and overhauling the electrical system is one step in the right direction. You also have to consider your navigation and communication equipment. Are they well maintained and up-to-date with redundant systems in place should they break/fail?

Planning around weather:

Setting a date by planning around hurricane season, currents and winds require lots of research and paperwork. Not as simple as it sounds. Chris Tibbs from Sailing Today provides an excellent article detailing what to expect along the way.

 

Vessel safety equipment:

Corresponding liferaft, Transponder SART, EPIRB, life jackets for all crew, fire-fighting equipment, first aid kit, etc. Have all the recommended safety equipment? Double-check them and make sure they are in working order. Spare no expense when it comes to your safety. This should be obvious but it’s worth repeating, a safe sailor is a happy sailor.

 

Whether you will be sailing single-handed or with a crew, at Edward William we have you covered. By working with Insurers all policies have the option to include transatlantic cover should this be needed. Why not give us a try by completing the below quotation questionnaire:

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Your Details

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Boat Details

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Engine and Cruising Area

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Safety

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Are the following areas fitted with an automatic or remote fire extinguishing system?

State number and make of fire extinguishers carried:

Mooring

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Cover Required

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Endorsements

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(If yes, this will be subject to an up to date valuation survey and photographs)

Sums Insured

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Liability

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Additional Information & Declarations

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Yacht Clauses

Our commitment to you:

Edward William is not led by a computer-generated quotation system but has a team of dedicated marine underwriters with the traditional skill of ‘reading’ the risk based upon the information provided. As a family-owned business our commitment is to provide an exemplary customer service coupled with the ability to arrange flexible tailor-made cover without imposing unnecessary restrictions.

The dedication of our staff in providing you with the very best service wherever you may be in the world is reflected in our clients remaining with us for many years and happily recommending us to others. A fact of which we are most proud and drives us to offer you the same high standards of care.

How can we help?

Edward William are here to help and answer any questions you may have.

If you came to us through an insurance broker then please contact them in the first instance. Email Us: info@edwardwilliam.com

Write to Us: 1776 North Pine Island Road, Suite 324, Plantation, Florida, 33322, USA

About Edward William:

Edward William was founded in 2004 as an international marine insurance underwriter offering comprehensive cover for boats and marine equipment around the world, with our corporate headquarters moving to the United States in 2023.

We pride ourselves on our exemplary customer service and the ability to offer marine insurance tailor-made to your individual requirements.

About your Insurer:

Edward William arranges insurance through the ION Insurance Group SA, formed in 2004 in San Jose, Costa Rica. Today the Group includes ION Surety Company SA and ION Insurance Company Inc (US). Group balance sheet assets are $180,000,000.00.

Benefits of Insuring with Edward William:

The following summary contains some important information about your policy. It will help you understand if this insurance meets your needs as not everything is covered by this insurance: policy limits, conditions and exclusions apply. You should review your policy on a regular basis to ensure that the cover provided is adequate for your requirements.

For details of the full cover provided please read the policy wording together with the policy schedule, your original application, the signed warranties and conditions form and any endorsements or conditions applied.

In return for the payment of the premium and compliance with all applicable terms and conditions of this policy and any endorsements shown on your policy schedule, the underwriting Insurers agree to provide the coverage that you have selected as shown on the proposal form and policy schedule which forms part of the contract of insurance. At your request, various changes to this insurance contract may be made by us but only by our prior written agreement. By accepting this policy, you agree that the statements on the proposal form and any other required information or communications are your agreements and representations. This policy is issued in reliance upon the truth of your representations during the application process and it includes all agreements existing between you and us or any of our representatives.

This is a 12-month policy or as shown on your policy schedule. The Insurance policy is underwritten by ION Insurance and is a policy of indemnity unless otherwise stated on your policy schedule.

PLEASE ENSURE THAT YOU READ THIS POLICY CAREFULLY TO ENSURE THAT THE COVERAGE OFFERED IS TOTALLY SUITED TO YOUR INSURANCE REQUIREMENTS. SHOULD YOU HAVE ANY CONCERNS THESE SHOULD IN THE FIRST INSTANCE BE DIRECTED TO EDWARD WILLIAM OR YOUR BROKER.

Understanding what is not covered.

Section B of this document sets out the cover we can provide you with. You will need to decide if the limits, type, and levels of cover are appropriate for you and will cover your potential loss. If they are not, you may be underinsured which will result in you having to bear part of any loss that you have not covered yourself. Not everything is covered by this insurance policy, limits and conditions apply. It is important that you read this document carefully so that you can understand what is covered and the limitations. Remember that your policy is not a maintenance or breakdown contract. It is up to you to ensure that all measures are taken to maintain your vessel and machinery in a condition conducive to its use and failure to do so could result in a claim not being settled and/or the policy being cancelled from inception. Read the words with special meaning to ensure that you understand what we mean by terms used in relation to the cover that we provide. For example, ‘Market Value’ is a defined term that affects what we cover you for. Make sure that you understand what we specifically exclude. Each cover has specific exclusions that apply to it. You should also ensure that you comply with the general conditions and claims conditions of the policy which set out certain obligations that you have. Failure to comply may result in a refusal to pay a claim. We will only cover your interest in the insured property unless we specifically include the interest of a third party on your policy schedule. The terms of your policy and premium are based on the information you have provided to us. You must ensure that all facts given are correct and you must contact us immediately if there are any changes to the information you have provided or at any time that you discover that the information is incorrect. Examples include but are not limited to:

  1. Changes in conditions, market value or use of the vessel.

  2. Criminal charges or convictions of any person having an interest in the vessel.

  3. Changes in mooring location or type of mooring for the vessel.

A failure to provide full and accurate information may invalidate your policy and may result in part of a claim not being paid or the entire claim not being paid. If you are in any doubt, please contact us to ensure that you are and remain fully covered.

Excess/Deductible

If you make a claim under your policy, you may first have to pay a policy excess/deductible. We will pay the relevant amounts that we cover you for above any policy excess/deductible. You will be required to pay us any policy excess/deductible applicable prior to us dealing with a third-party claim. We will specify any policy excess/deductible on your policy schedule when we issue cover.

Language

Unless otherwise agreed in writing the language of your policy and any communication throughout the duration of the policy will be in English.

Law and Jurisdiction

If your policy is underwritten by ION Insurance Company Inc then your policy shall be governed by and construed in accordance with the law of the United States of America and the courts of the United States of America shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with your policy or its subject matter or formation (including non-contractual disputes or claims) unless specifically agreed to the contrary.

If your policy is underwritten by ION Insurance Group SA then your policy shall be governed by and construed in accordance with the law of Costa Rica and the courts of Costa Rica shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with your policy or its subject matter or formation (including non-contractual disputes or claims) unless specifically agreed to the contrary.

Data Protection Notice

To consider your request for insurance cover or administer subsequent dealings in respect of your policy we must process your personal data and where appropriate your ‘sensitive’ personal data and in doing this we will comply with the provisions of any applicable domicile data protection act. We may check and/or pass some or all the personal information we obtain in connection with your policy or claim to our appointed service providers to administer the policy or for underwriting and claims handling purposes. We may also pass some or all the personal information to regulatory or other organisations, so that we can comply with our obligations, and we may also pass on

some or all the personal information to databases and fraud prevention agencies. Premiums and Claims

All premiums are handled by us or on our behalf by our agents. Claims are initially handled by us and will be passed to the underwriting Insurer for approval prior to settlement.

Contacting Us

We are only able to discuss your policy with the person(s) shown on the policy schedule. If you require someone else to deal with your policy on your behalf, please contact your broker or us at the address shown on page 3.

Applying for Cover

To apply for this insurance, you must complete our application/proposal form and send it to us. Depending on the information you provide on your proposal we may ask you for further information. When completing the proposal or providing us with additional information in relation to your proposal, you must comply with your duty of disclosure. Please refer to the Duty of Disclosure section of this policy. Where we agree to provide cover, we will issue you with a schedule of insurance which sets out:

  1. The period of insurance.

  2. The vessel and/or property covered.

  3. The limits of those covers.

  4. The excesses/deductibles that will apply to you or others.

  5. Any variation to the standard terms.

    The premium that we charge you is based on several factors including your risk profile (e.g., where your vessel is located, the type of vessel being insured, its value, navigational limits, and your insurance history etc.) It includes any amounts that consider our actual or estimated obligation to pay any relevant government charges in relation to your policy as well as any additional service charges that we tell you about. We will tell you when you apply, what premium is payable, when it needs to be paid and how it can be paid. Additional charges do apply if you pay your premium by instalments. Special conditions also apply to instalment payments as shown on your policy schedule.

    You may be eligible for a no claims bonus which is a discount off your premium. The no claims bonus you receive will depend on the number of years you have insured your vessel and the number of claims that you have had. You are eligible for a no claims bonus if you have experienced no claim against a pleasure craft policy for at least 12 consecutive months of cover. The no claims bonus discount is as follows:

    1. year = 5% Discount

    2. years = 10% Discount

    3. years = 15% Discount

    4. Years = 20% Discount (30% renewals only)

    5. Years = 20% Discount (40% renewals only)

      If you make a claim against your policy your no claims bonus would revert to zero for the following renewal and will be earned again year on year as per the details above

      Cooling off Period

      You have a cooling off period which means you can return your policy within 7 days of the commencement of the cover, and we will refund the premium paid less any charges unless you have made or are entitled to make a claim under the policy, or another party is entitled to make a claim against you for which you intend to rely on your policy. After the cooling off period ends you can cancel the policy by notifying us in writing. For full details of your cancellation rights please see full details of cancellation rights under Section 10 of this policy wording.

      Your Cover

      Where we have agreed to cover you, your policy will consist of:

      1. This product disclosure statement which sets out details of your cover and its limitations.

      2. The policy schedule we issue to you, which shows the terms and conditions that apply specifically to you such as the excesses/deductibles that apply, the sums

        insured, the navigational limits of your policy and the endorsements that apply to your

        policy.

      3. Any additional endorsements issued and the signed warranties and conditions form.

        You should carefully read and retain this document, the schedule and any other document referred to above. These documents should be read together as they jointly form the contract of insurance between you and us. Any new or replacement schedule we may send you detailing changes to your insurance contract, or the period of insurance will become the current schedule, replacing all previous schedules from the date of issue. Any new and amended schedules should be read carefully and retained. Should you find any errors or wish to make any changes to the cover in any way please contact your broker or us immediately in order that they can issue the relative endorsement. We cannot be held responsible for any oversight on your part unless advised. Where we have agreed to cover you, we will insure you for the cover(s) specified on the schedule for the period of insurance on the basis:

        1. That you have paid the premium or agreed a payment plan for the cover(s) you have selected when you applied for this insurance and which the schedule indicates are in force.

        2. That the insured vessel is for private pleasure use only. Coverage is not provided for charter, lease, or any other commercial activity unless agreed by us and shown on the schedule.

        3. Of the verbal and/or written information provided by you which you gave having been advised of your duty of disclosure either verbally or in writing. If you failed to comply with your duty of disclosure, we will be entitled to reduce our liability under the policy in respect of a claim to zero and/or we may cancel the policy. If you have deliberately misled us or told us something which is fraudulent, we also have the option of voiding your policy from the beginning and/or taking legal action against you. For your assistance, we have provided a full explanation of your duty of disclosure and the consequences of non-disclosure under the heading ‘Your Duty of Disclosure’ in this policy wording.

      Please note that the following covers (Sections 1 to 6) are subject to the sections of this policy called general conditions, general exclusions and claims conditions as well as the other terms of the policy.

      Important Features and Benefits.

      Section 1 Accidental Loss or Damage to Your vessel

      This section covers accidental loss, damage, fire and/or explosion or theft to your vessel and certain other property up to the sum insured and limits specified in the schedule of insurance or this document. Additional limits apply to certain property such as fishing gear, water ski equipment, diving equipment, tools, and personal

      belongings. Please note this is a market value policy which means that in the event of a claim settlement would be based on our assessment of value or sums insured whichever is the lower.

      Section 2 Liability to Other People.

      This section covers your and other specified persons’ legal liability to pay compensation for property damage and in some cases death and injury up to the sums insured noted on the policy schedule (excluding legal costs and expenses) to other people in certain circumstances.

      Section 3 Captain and Crew Liability

      This section covers damages (including if applicable, maintenance and cure, repatriation and other related expenses) for which you and / or any insured person are legally liable to pay an employed captain or crew member in respect of your legal liability to any employed crew which occurs whilst the crew member is in the service of your vessel.

      Section 4 Injury to the Named Insured

      This section covers named insureds up to a maximum of $5,000 (or equivalent in any other currency) for death and certain specified injuries. If more than one person is named on this insurance policy, then the amount paid to each insured will be the amount payable under this section divided by the number of insured persons.

      Section 5 Emergency Medical Expenses

      This section covers the reasonable cost of emergency medical expenses up to US$5000 (or equivalent currency) or as specified on your policy schedule in respect of injuries incurred within one year from the date of an accident causing bodily injury to any person while in, upon, boarding or leaving an insured vessel. The injured person must submit to an examination by a physician selected by us when and as often as we reasonably require.

      Section 6 Racing

      This section provides details of the cover allowed for racing. This section is not automatic to the policy and must be applied for at inception or renewal.

      Section 7 General Conditions Applying to The Whole Policy

      This section details all the conditions of the policy that apply to all sections of the policy and that you must complywith. Failure to comply with these conditions will invalidate any claim.

      Section 8 General Exclusions Applying to the Whole Policy

      This section shows all the exclusions that apply to all sections of the policy and are in addition to any exclusions shown under individual sections.

      Section 9 General Excesses and Deductions

      This section shows details of the amounts that will be deducted from any claim that you make under this policy.

      Section 10 Cancellation and Return of Premium

      This section details your cancellation rights and returns you can expect following cancellation of the policy as well as the rights of us to cancel your policy.

      Section 11 Claims

      This section details what is required of you to instigate the claims procedures and what is required from you to ensure that the claims process runs smoothly.

      Section 12 Your Duty of Disclosure

      This section details what you should tell us and when you should tell us regarding details that may affect our decision to offer cover under this policy or the premium to be charged and conditions to impose.

      Section 13 Complaints Procedure

      This section details what you need to do in the event of a complaint as well as the addresses and telephone numbers that you would need to contact.

      Section 1 – Accidental Loss or Damage to Your Vessel. What We Cover

        1. We will cover you for accidental loss, damage, fire and/or explosion and theft to your vessel which occurs during the period of insurance as shown on your policy schedule and is within the navigational limits shown on your policy schedule, including whilst your vessel is in transit on the trailer by road, rail, or ship, provided that your vessel is designed to be towed on the trailer and all local laws regarding towing are adhered to. Any contract or common carrier must be licenced and provide a certificate of insurance covering the insured vessel.

          At our option, we will (subject to payment of the relevant excess)

          1. Repair or replace your vessel or

          2. Pay you the reasonable cost of repairing or replacing your vessel or

          3. Pay you the market value of your vessel.

          We will not pay more than the applicable sums insured and limits specified in either this policy wording or your marine insurance schedule. In respect of the repair or replacement of property, we will reimburse you for the cost of reasonable repairs and or replacements required to bring the property as near as possible to its appearance prior to the claimed loss or damage. We will deduct an amount for wear and tear and depreciation that we may consider applicable due to the age and general condition of the item/s being claimed for. In the event of partial damage, claims will be settled based on the proportion of the vessel damaged being the proportion of the sum insured applicable. Loss or damage to the vessels main engine(s) or attached gearbox and transmission caused by the failure of any component part provided that:

          1. The engine(s) or attached gearbox and transmission are less than 5 years old from the date of first manufacture.

          2. Is professionally installed.

          3. Has a maximum design speed not exceeding 17 knots unless insurers have been informed and the speed boat clause is shown on your insurance schedule.

          4. You can provide written evidence that all the manufacturer’s maintenance recommendations have been carried out.

          The cover under this clause 1.1 does not extend to the outboard motor(s) or the cost of replacing or repairing the failed component.

        2. Loss or damage to personal effects is limited to US$500.00 (or equivalent currency) per item as specified on your policy schedule should this cover be selected.

        3. Loss or damage to fishing gear, water ski equipment, diving equipment and tools is limited to US$500.00 (or equivalent currency) per item as specified on your policy schedule should this cover be selected.

        4. Salvage charges and wreck removal will be covered if selected on the proposal form and shown as an endorsement on your policy schedule. Coverage will be to a maximum of 10% of the hull sum insured (or US$30,000.00 whichever is the greater) with an excess/deductible on any salvage claim of 10% of the salvage amount. If your vessel is damaged or sinks accidentally, we agree to recover it or the law requires that it must be removed, then we will pay the reasonable costs of the salvage charges incurred for the removal/recovery of the wreck up to the amount requested and specified on your policy schedule. This cost will be paid in addition to the sum insured for your vessel noted on your policy schedule.

        5. Windstorm Coverage, If coverage is shown on the policy schedule for Hull and if a storm watch or warning is issued for the area where your Vessel is moored, and if you have paid for full All Storm cover, we will share the costs that you incur to protect the insured vessel from loss or damage provided you:

          1. have the insured vessel professionally hauled out of the water (in accordance with General Condition 7.15) at the time the watch or warning is issued for your mooring area and to have the insured vessel launched after the watch or warning has ended (subject to What we do not cover Clause 25) or.

          2. hire a qualified individual who is not an insured under this policy (if you are unable to move the vessel yourself), to navigate the insured vessel to a safe harbour out of the path of the storm because of the watch or warning.

          3. We will pay 50 (fifty) percent of your actual incurred expenses subject to a maximum of US$5,000 (or equivalent in other currencies) for any one storm and US$10,000 (or equivalent in other currencies) in any single policy period.

            If you do not protect your vessel with either of the undertakings described in 1.5.1 or 1.5.2 above and your vessel is subsequently damaged by a named or numbered tropical storm, hurricane, or cyclone then your storm coverage will be invalidated.

        6. If ‘Laid Up’ is shown on your policy schedule, during the laid up period shown:

          1. If the policy schedule indicates that laid up is afloat, then the insured vessel must be in a safe berth for storage and may not be operated except as required to change berths within the immediate berthing location. However, if you are required to move the vessel for the purpose of safety, repairs and alterations or for betterments and improvements, coverage will not be suspended.

          2. If the laid up location is ashore, then the insured vessel may not be afloat.

        7. Underwater gear including the rudder, strut, shaft, propeller and keel, excluding the outboard motor(s) where the maximum design speed of the vessel is less than 17 knots.

      What We Do Not Cover

      We will not cover you:

      1. For any reduction in the value of the vessel because of damage and/or repair.

      2. For previously unrepaired damage to the vessel (except where required to prevent or minimise a loss)

      3. For the cost of making good any defect arising from any repair, alteration or maintenance work carried out on the vessel

      4. For the cost of making good any fault or error in design or construction

      5. For theft of a vessel tender that does not have an identifiable mark/parent vessel name.

      6. For personal effects in relation to any vessel under 15 feet in length overall.

      7. For any single item of personal effects, fishing gear, diving equipment, water ski equipment and tools more than US$500.00 (or equivalent currency) unless agreed by us.

      8. For jewellery, clothing, cash, debit/credit cards, eyewear, mobile personal electronic devices, and other forms of computer equipment unless agreed by us.

      9. For breakage of articles of a fragile or brittle nature.

      10. For personal effects insured under any other policy of insurance.

      11. For loss or damage to personal effects, fishing gear, diving equipment, water ski equipment and tools unless they were stored on or being used on your vessel at the time of loss or damage.

      12. For theft from your vessel of personal effects, fishing gear, diving equipment, water ski equipment and tools unless there is physical evidence of forcible or violent entry into a lockable part of your vessel.

      13. For loss or damage to cameras, portable radios, mobile phones, moorings, provisions, and fuel unless you specify these items individually and we agree to extend the cover to them in writing.

      14. For theft by persons to whom your vessel is entrusted.

      15. For loss or damage to an outboard motor when secured to your vessel or the vessel tender in a manner other than that specified or recommended by the manufacturer of the motor, your vessel or your vessel’s tender.

      16. For theft of any outboard motor whose serial number you did not provide us with or theft of the outboard motor unless from a locked cabin or locker, locked storage, locked vehicle or secured to the vessel or her tender by an anti-theft device specifically designed and marketed for the purpose in addition to the normal method of attachment.

      17. For theft of the trailer and any items attached to it, including the vessel, unless the trailer has been locked with a wheel clamp or is stolen from a locked building following forcible or violent entry to or exit from said building.

      18. For damage to the tyres of your trailer.

      19. For loss or damage caused by wear and tear, gradual deterioration, vermin, corrosion, electrolysis, mould, osmosis, inherent vice and/or lack of maintenance.

      20. For gradual accumulation of rainwater or snow in or on the vessel unless resulting from sudden, rare, and extreme weather conditions (and you have selected enhanced storm cover) or frost and or freezing unless you can provide evidence that you have taken all necessary preventative measures including, but not limited to, compliance with

        all manufacturers recommendations or where manufacturers recommendations do not exist; acting on the advice of a qualified marine engineer including the correct use of anti-freeze.

      21. For incursion of water or flooding affecting or into the vessel unless sudden and unforeseen, or accidental and you have selected enhanced storm cover.

      22. For any water damage caused by partial or total immersion unless the vessel is fitted with a fully functional and working automatic bilge pump.

      23. For loss or damage to sails caused by the wind or water whilst in use unless the spars they are attached to are damaged at the same time.

      24. For the mast, spars, sails and rigging whilst the vessel is racing unless this has been agreed by us and is specifically shown on the schedule of insurance in which case cover is extended.

      25. For storm as defined by insurers (see words with special meanings on page 33 of this policy) unless otherwise stated on your schedule of insurance, or for named or numbered tropical depressions, tropical storms, cyclones, hurricanes, or severe flooding in existence or forecast at the time the policy is incepted.

      26. For lightning strikes on vessels where a lightning rod and connection to earth is not fitted and the policy is endorsed with at least Standard Storm coverage. If the vessel is a sailing vessel with an aluminium mast and all masts and shrouds are suitably grounded then the lightning rod requirement is waived. All other conditions apply.

      27. The resulting direct physical loss to the insured yacht for a dismasting unless a professional rig inspection was completed within the last two years and any deficiencies that were identified with the standing rigging or chain plates were remedied as recommended and the work was completed by a professional rigger.

      28. For consumables, which are goods used by you that must be replaced regularly because they wear out or are used up including, but not limited to, food, drink, paint, varnish, lubricants, and fuel.

      29. For malicious damage caused by any person/s named in the schedule or their immediate families.

      30. For mechanical parts, fittings and appliances that are not in accordance with manufacturers original specifications or suitable for marine use.

      31. For loss or damage to a motor caused by or resulting from seizure and/or overheating unless caused by an external blockage.

      32. For loss or damage which is a secondary financial loss sustained by you because of loss or damage to your vessel or other insured property or associated loss or damage.

      33. For the cost of repairing or replacing any part of your vessel due to mechanical and/or electrical breakdown or failure.

      34. For the cost of repairing or replacing any part of your vessel due to fault or error in design or construction.

      35. For the cost of improving or altering your vessel.

      36. For any damage resulting from scratching or gouging to any part of the vessel whilst the vessel is being lifted from or returned to the water and whilst on a trailer or any other mode of transportation whilst in transit.

      37. For emotional, psychological, or sentimental loss which occurs due to the loss or damage sustained to your vessel.

      38. For any commercial activity unless agreed by us and is shown on your policy schedule. In this event the Commercial Endorsement will apply.

      39. For the insured vessel being transported as waterborne cargo unless agreed by us in writing and an appropriate endorsement issued.

      40. Dock boxes, moorings, cradles, lifts, shore stations or personal watercraft unless agreed by us and shown on the policy schedule.

      41. Loss or damage because of a repair yard Lien being enforced, including but not restricted to the arrest or detention of the vessel.

      42. For any claim that exceeds the combined single limit.

        Dismantling, Diagnosis and Reassembly Costs

        Where you make a claim for loss or damage to your vessel, we may in some circumstances, require you to:

        1. Dismantle your vessel; or

        2. Authorise us to dismantle your vessel, so we can assess your claim for the relevant loss or damage and/or decide if it is valid. If you do not agree we may refuse to assess and/or pay your claim. Where we determine that the claim for loss or damage to your vessel is:

        3. Not covered by your policy, you will be responsible for the costs of the above dismantling as well as any costs associated with the dismantling (including but not limited to any

          diagnosis, reassembly, repair and /or replacement costs).

        4. Covered by your policy, we will settle your claim in accordance with the terms and conditions of your policy

      Section 2 – Your Liability to Others. What We Cover

      We will cover you or anyone in charge of your vessel with your consent for their legal liability to pay compensation in circumstances specified below, up to the sums insured shown on the policy schedule but restricted to US$1,000,000 (or equivalent currency) unless the policy is underwritten by ION Insurance Company Inc whilst in USA and Canadian waters in respect of any one incident or series of incidents arising from the same event resulting from:

        1. damage to any other vessel or property

        2. death or injury, except to paying passengers unless agreed by us and shown on the schedule of insurance.

        3. pollution arising from sudden and accidental discharge, release or escape of fuel, lubricants, or sewage either directly or indirectly from holding tanks on your vessel within the navigational limits shown on your policy schedule, other than liability connected with:

          1. Your own recklessness, deliberate actions, or misconduct

          2. the recklessness, deliberate actions, or misconduct of any person in possession of your vessel either with or without your permission.

          3. fuel or lubricants not being used in connection with the operation of your vessel at the time of loss.

          4. lack of maintenance on your vessel resulting in the discharge.

          5. fines, punitive, aggravated, or exemplary damages

          We will pay no more than US$150,000 (or local currency) for any one discharge, release or series of discharges, releases, or escapes in any one policy period including legal expenses unless it is underwritten by ION Insurance Company Inc where the maximum coverage is limited to US$1,000,000.

        4. Legal costs incurred or required to be paid when defending a claim, subject to our prior written consent.

        5. fees and/or expenses incurred in respect of attendance at any official enquiry, subject to our prior written consent.

        6. Water-skiing (only applies when the policy schedule shows that you have selected this option).

          You and/or any person using your vessel with your permission and/or any person engaged in water-skiing, wakeboarding and/or aquaplaning activities (using only recognised and commercially manufactured water ski and/or wakeboarding equipment and/or barefoot water-skiing) while being towed by your vessel within the navigational limits during the period of your insurance cover for:

          1. Death or injury to any person caused by a water-skier who is being towed by your

            vessel. $20,000

          2. Property Damage caused by a water-skier being towed by your vessel. $20,000 Cover is not provided under this option unless the policy schedule shows that you have selected this option and a person is on board your vessel competently and in accordance with relevant legal requirements observing the water-skier and/or aquaplaning activities in addition to the person in control of your vessel at the time of

          the incident giving rise to a claim. Death or injury to the water skier being towed by your

          vessel is not covered.

        7. Marina liability is covered for legal liabilities imposed upon you by the terms and conditions of a lease agreement with you for the provision of a berth, mooring or storage facility for your vessel up to the sums insured.

        8. Legal costs are covered. Provided we first agree in writing, we will pay for all legal costs and expenses incurred in defending any court proceedings which may arise in respect of any liability covered by this section. We will not pay for third parties’ legal costs or for any legal costs and expenses relating to any criminal, maritime or traffic proceedings.

      What We Do Not Cover

      No cover is provided in respect of:

      1. Legal liabilities of anyone operating, managing, or working upon the vessel who is employed by a shipyard, repair yard, marina, yacht club, sales agency, delivery contractor, similar organization or self-employed who should have been covered by any compulsory compensation insurance.

      2. Any liability for accidents or illness to any person engaged by you in connection with the vessel under a contract of employment.

      3. Any liability to third parties admitted, accepted, or agreed without our consent.

      4. Any liability to third parties whilst the vessel is being used for water-skiing, towing of water toys, aquaplaning or similar activity unless we have agreed to such activity and it is shown on your schedule of insurance, in which case refer to clause 2.6 above.

      5. Any liability arising whilst the vessel is used for or in connection with parascending or other similar activity unless we have agreed to such activity, and it is shown on your schedule of insurance. If such activity is agreed cover will not extend to persons outside of the vessel taking part in said activity.

      6. Any liability to third parties while the vessel is attached to, carried on or towed by a motor vehicle or has become unintentionally detached from a motor vehicle.

      7. Any liability to any person if they or anyone else has paid for them to be on-board the vessel unless cover has been extended to include commercial use and passenger liability.

      8. Any liability arising other than from the hull, motors, masts, spars, rigging, sails, equipment, and accessories being used on your vessel, vessels’ tender, or trailer.

      9. Any liability for loss or damage occurring to property owned by you or in your physical or legal control or owned by any person using your vessel or in their physical or legal control.

      10. Any liability for disease that is transmitted by you or anyone using your vessel.

      11. Any liability for fines or penalties and/or aggravated or exemplary damages

      12. Any liability for any relief or recovery other than monetary amounts.

      13. Any liability from a contract that imposes on you a liability which you or a covered person would not otherwise have.

      14. Any liability that is covered under any other policy. We will be liable under this section 2 only for the amount your liability exceeds the limits of cover under any other policy.

      15. Any liability that is in part covered in any way by any:

        1. Statutory or compulsory insurance policy or statutory or compulsory insurance, or

        2. Compensation scheme or fund even if the amount recoverable is nil.

      16. Any liability arising directly or indirectly out of or in any way connected with the existence, at any time, of asbestos.

      17. Any liability arising directly or indirectly from or in any way connected with, the existence, use, operation, or maintenance, at any time, of computer technology, electronic mail, a computer virus, an internet site or other internet-based service, intranet, or any web site.

      18. Any claim directly or indirectly caused using diving equipment.

      19. When the vessel is under tow or towing another vessel except for the vessels tender or unless agreed by us.

      20. Any liability where the third party is uninsured, and subrogation cannot apply, unless agreed by us and shown on your policy schedule.

      21. Bodily injury or property damage while the insured vessel is being transported on land on a trailer except where the vessel is being hauled out or launched by a person covered under this policy.

      22. Any fine or penalty assessed or imposed by a government body.

      23. Bodily injury or property damage sustained by any insured, their spouse, other family members or persons living in their household.

      24. Bodily injury, illness, or any other payment or obligation to any person eligible to receive any benefits required to be provided by you. This includes, but is not limited to, any employment, unemployment, disability, worker’s compensation, non-occupational disability, occupational disease law, Federal Longshoremen’s and Harbour Worker’s Compensation Act, or any state or federal workers’ or workmen’s compensation law or migrant or seasonal worker’s law.

      25. Any liability resulting from intentional acts.

      26. Any liability for damage to a marine environment, artificial or natural reef, living or dead coral or any other marine organisms, caused by the vessel, its operator, or passengers.

      27. Any liabilities or medical expenses arising out of any illness or injury caused by exposure to all aspects of the weather, including the sun’s rays either cumulatively or suddenly.

      Section 3 – Captain and Crew Liability What We Cover

      3.1 We will cover, subject to our prior written agreement and your completion of a crew liability form plus the experience and qualification of all captains and crew members to be considered, damages (including if applicable, maintenance and cure, repatriation and other related expenses) for which you and/or any insured person are legally liable to pay an employed captain or crew member in respect of your legal liability to any employed crew which occurs whilst the crew member is in the service of your vessel. The maximum amount recoverable in respect of crew liability claims shall be the amount shown on the policy schedule and shall form part of the maximum recoverable under Section 2 Your Liability to Others. The deductible shown on the policy schedule under this section will apply to each crew liability claim. All other terms, warranties, conditions, and exclusions remain unaltered and in effect except for “What we do not cover” clause 2 above.

      What We Do Not Cover

      1. legal liabilities of anyone operating, managing, or working upon the vessel who is employed by a shipyard, repair yard, marina, yacht club, sales agency, delivery contractor, similar organisation or self-employed who should have been covered by any compulsory compensation insurance.

      2. bodily injury while the insured vessel is being transported on land.

      3. any liability covered or excluded under the pollution liability Section 2.3 of this policy.

      4. punitive or exemplary damages or associated interest.

      5. any liability admitted, accepted, or agreed without our consent.

      6. any liability while the vessel is attached to, carried on or towed by a motor vehicle or has become unintentionally detached from a motor vehicle.

      7. any liability for disease that is transmitted by you or anyone using your vessel.

      8. any liability that is covered under any other policy. We will be liable under this section only for the amount your liability exceeds the limits of cover under any other policy.

      9. any liability that is in part covered in any way by any:

        1. Statutory or compulsory insurance policy or statutory or compulsory insurance, or

        2. Compensation scheme or fund even if the amount recoverable is nil.

      10. any liability arising directly or indirectly out of or in any way connected with the existence, at any time, of asbestos.

      11. any claim directly or indirectly caused using diving equipment.

      12. any claim when the vessel is under tow or towing another vessel except for the

        vessels tender or unless agreed by us.

      13. any claim resulting from or because of pre-existing medical conditions.

      14. any claim where an employee is wholly or partially responsible for the incident leading to said claim.

      Section 4 – Injury to The Named Insured What We Cover

      We shall pay US$5000 (or equivalent currency) to a named insured during the period of insurance in an accident when using your vessel within the navigational limits shown on your policy schedule and that results in:

        1. Death

        2. Physical severance or permanent loss of use of the entire arm, hand, leg and/or foot.

        3. Permanent loss of sight in one or both eyes.

        4. Permanent total disability which has lasted at least 52 weeks post incident, and which prevents or precludes any gainful employment and where medical advisors that we may appoint confirm that the disability will not improve. Payment of a claim under this section is subject to the named insured obtaining medical attention from a qualified medical practitioner and undergoing any medical examination requested by us.

      What We Do Not Cover

      1. Death, permanent injury or total loss of a limb occurring after 12 months from the date of the accident.

      2. Self-inflicted death or injury, including suicide or attempted suicide whilst sane or insane.

      Section 5 – Emergency Medical Expenses What We Cover

      1. Cover is provided for the cost of emergency medical expenses, up to a maximum of US$5000 (or equivalent currency) incurred or as shown on the policy schedule under ‘Medical Payments’, by you, your family, and guests in respect of injuries suffered because of an accident sustained as a direct result of the vessel sinking or being in collision with another vessel or other external object other than water, whilst on board

        .a physician selected by us when and as often as we reasonably require. This is the most we will pay, regardless of the number of claims, or the number of vessels involved.

      2. Each person seeking payment under this coverage must:

  1. provide us with written authorisation for release to us copies of pertinent medical reports and records.

  2. submit a valid proof of loss within one year of the incurred expenses.

    What We Do Not Cover

    1. Any person employed or paid to be on the vessel.

    2. Any person if they or anyone else has paid for them to be on-board the vessel unless cover has been extended to include commercial use and passenger liability.

    3. Self-inflicted injury whilst sane or insane.

    4. Injured while trespassing.

    5. Whilst boarding and disembarking the vessel.

Please note that all other conditions, exclusions, general excesses, and deductions apply in every case.

Section 6 – Racing What We Cover

Whilst the vessel is racing, and this has been agreed by us and is shown in the

schedule of insurance cover is provided for:

    1. Loss or damage to the hull and machinery covered under Section 1 of the policy

    2. Loss of race entry fee up to £500 (or equivalent currency) if your vessel is unable to take part in a regatta, series, or event which you have entered because of any loss to the vessel covered under Section 1 of the policy

    3. For all races where we have received prior notification of entry and are listed on your policy schedule.

What We Do Not Cover

  1. The vessel if it is not a sailing vessel unless agreed by us and shown on your policy schedule.

  2. The additional excess/deductible as stated on your policy schedule.

  3. Mast, Spars, Sails and Rigging whilst participating in the race, regatta or speed trials unless agreed by us and specifically shown on your policy schedule.

  4. Races entered where we have not had prior notification of participation and they are not listed on your policy schedule.

Please note that all other conditions, exclusions, general excesses, and deductions apply in every case.

Section 7 – General Conditions That Apply to The Whole Policy

You must comply with all the following conditions that apply to all sections of this

policy:

    1. If you give permission for someone else to oversee the vessel, you must take steps to ensure that they have the experience and/or required qualification to do so.

    2. The vessel must not be navigated single handed by anyone for a period more than 12 consecutive hours or in any event unless single handed sailing has been requested and agreed by us. This will be shown on your policy schedule.

    3. The vessel must always be maintained in a condition conducive to its use.

    4. Vessel should be lifted for maintenance on a regular basis and a minimum of once every 5 years.

    5. You must not make any commitment on our behalf without our prior agreement.

    6. The vessel and the way it is used or operated must comply with all statutory and local regulations or licensing conditions, as are applicable.

    7. You must not use or allow the vessel to be used for any unlawful purpose.

    8. All named insureds and persons given permission to operate your vessel will be at least 25 years old unless agreed by us in advance.

    9. The amount of cover you require should fully cover the value of the vessel and accessories. If the value requested does not represent the full value of the vessel and accessories, then claim settlements will be based on the percentage of cover requested and shown on your schedule of insurance.

    10. Where you pay your premiums by instalments you must ensure that you pay each instalment on time. If an instalment is unpaid your cover will be cancelled with immediate effect, and you will be required to pay the balance in full along with an administration fee to reinstate the cover under the policy. If an incident occurs following cancellation for non-payment of an instalment any claim during the period of cancellation will be declined even if you subsequently reinstate the policy cover.

    11. You must notify us as soon as possible if you modify or intend to modify your vessel from the manufacturer’s original specifications. When we receive this information, we may:

      1. Alter the terms and conditions of your policy

      2. Charge you an additional premium

      3. Cancel your policy

      4. Decide not to offer to renew your policy

      If you do not provide the information, we may not pay a claim under the policy.

    12. If you have been at sea in your vessel for more than 24 hours and your policy would otherwise expire (other than by cancellation), we will provide a temporary extension to the period of insurance until 24 hours after your vessel arrives at its next port. The temporary extension to the period of insurance will apply automatically unless, when your vessel arrives at its next port, you do not notify us within 24 hours of its arrival to decide to renew your policy.

    13. If you sell, transfer, or give away your vessel the cover will cease to apply upon completion of the sale, transfer, or disposal unless you decide to transfer the remaining period of insurance cover to the new owners. We will transfer this at no additional cost to you subject to a proposal form being completed and received from the new owner.

    14. Other Insurance: - in accordance with legislation covering dual insurance, we will only provide cover to the extent that the amount of the claim is more than any payment that may be made from any other insurance.

    15. If stored ashore as part of your windstorm provisions, it is required that vessels are tethered/secured to the ground, have the mast and rigging removed and safely stored with sufficient space between the vessels to prevent contact should they topple over. A catamaran is not required to remove the mast and rigging, however in the event damage is caused to the mast and rigging by flying debris that would not have struck the mast had it been removed and stored away safely then it would not be covered. Sufficient space should still be maintained between the catamaran and adjacent vessels.

    16. Where coverage is subject to a survey and/or mast/rigging report this must be no older than five years with a fresh up to date survey and/or mast/rigging report due by the next renewal.

    17. Where agreed value applies, continuation of this cover is subject to a fresh valuation every two years.

    18. No person or organisation which has custody of the insured vessel and is to be paid for services will benefit from this insurance, unless agreed by us and shown on your policy schedule.

    19. If you have used a broker/agent to effect cover, it is agreed that your broker/agent shall be deemed to be exclusively the agents of you and not of us in all matters relating to this insurance. Any notice, documentation or communication given or mailed by or on behalf of us to the said brokers in connection with this insurance, or its cancellation, shall be deemed to have been delivered to you.

    20. Where a buoyancy aid or life jacket is requested, required or stipulated, then this must be a lifejacket with a buoyancy rating of at least 100 Newtons.

Section 8 – General Exclusions That Apply to The Whole Policy

You are not covered for any claim arising:

    1. While the vessel is outside of the navigational limits shown in the schedule of insurance, unless required to safeguard the vessel, you, or your guests.

    2. From any storm or flooding, above Force 6 on the Beaufort Scale unless agreed by us and shown on your policy schedule.

    3. Fire or explosion on the vessel if fitted with inboard machinery unless:

      i). The vessel is equipped in the engine compartment with a fire extinguishing system which is either automatically operated or has controls at the steering position or has controls next to the engine compartment, or

      ii) Has portable firefighting equipment on board and that allows access to the engine compartment through a designated access panel.

      All fire extinguishing equipment must be professionally installed, maintained and up to date.

    4. When the vessel is being used for charter, hire, or any commercial purposes unless agreed in advance by us.

    5. From any claim arising from an incident involving your vessel or any vessel covered by this policy when the vessel is under the control of:

      1. An unlicenced person when a licence is necessary

      2. A person without adequate experience to reasonably control the vessel.

      3. A person under the influence of alcohol or drugs.

      4. A person who has been refused marine or motor vehicle insurance within the last five years unless we have been notified of the refusal and we have subsequently agreed to cover such a person under this policy.

    6. from racing, regattas or speed tests/trials/events unless agreed by us and shown on your policy schedule.

    7. from any damage caused by wear and tear, mould, deterioration, vermin, corrosion, electrolysis, electrolytic/galvanic action, inherent vice, marring, scratching or denting of the hull and/or its equipment and lack of maintenance.

    8. from your vessel or any vessel covered by this policy being fitted with a motor more powerful than that recommended by the manufacturer of its hull.

    9. For any vessel that exceeds 17 knots unless this is agreed by us and shown on your insurance policy schedule. If this is agreed, then the following exclusions apply:

      1. fire or explosion on the vessel unless the vessel is equipped in the engine room with a fire extinguishing system automatically operated, or

      2. has controls at the steering position, or

      3. controls next to the engine room and

      4. all are professionally installed and maintained.

      5. sinking or swamping whilst the vessel is unattended afloat off an exposed beach or shore.

      6. Rudder, strut, shaft, propeller, or any part of an outboard / inboard engines underwater gear unless this has been agreed by us and is shown on your policy schedule. In this event coverage is limited to a maximum of 5% of the hull/machinery value with a deductible of 10% of the sum insured.

    10. From any claim caused by or arising because of the unseaworthiness, lack of repair or maintenance of your vessel or any vessel covered by this policy.

    11. from any claim caused by or arising because of the use of your vessel or any vessel covered by this policy for water-skiing or similar activity, unless you have advised us, and we agree to extend cover in writing on your policy schedule.

    12. From any claim caused by or arising because of pollution or radioactive contamination except as otherwise specifically covered in the policy.

    13. From ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel including:

      1. the radioactive, toxic, explosive, or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof

      2. any weapon or device employing atomic or nuclear fission or fusion or other like reaction or radioactive force or matter

      3. the radioactive, toxic, explosive, or other hazardous or contaminating properties of any radioactive matter.

    14. From any chemical, biological, chemo-biological, or electromagnetic weapon.

    15. from any claim for loss, damage, liability, injury, illness, death arising directly or indirectly out of or in any way connected with:

      1. any act of terrorism arising directly or indirectly out of or in any way connected with biological, chemical, radioactive, or nuclear pollution or contamination or explosion or,

      2. any action controlling, preventing, suppressing, retaliating against, or responding to any act referred to in this Section 8.15.

      3. an act of terrorism includes but is not limited to, any act, preparation in respect of action or threat of action designed to:

        1. influence a government or any political division within it for any purpose, and/or

        2. influence or intimidate the public or any section of the public with the intention of advancing a political, religious, ideological, or similar purpose.

    16. From war, civil war, conflict, commotion, and riot.

    17. From any claim involving false or fraudulent representation by you or any person acting with your express or implied consent. Under these circumstances we may refuse payment of any claim and/or cancel the policy.

    18. From any claim caused by or arising because of a malicious or criminal act (including theft, conversion, or misappropriation) caused by or involving you or any person who is acting with your express or implied consent.

    19. From any claim arising from an incident involving your vessel or any other vessel covered by this policy or other insured property when it is being used for an unlawful or illegal purpose.

    20. From any claim for loss or damage caused by or arising because of the lack of reasonable care, protection and/or security of your vessel or any vessel covered by this policy or other insured property.

    21. From any claim for loss or damage caused by or arising because of the mooring used by your vessel or any vessel covered by this policy not being:

      1. an officially regulated mooring with a signed contract in place, unless agreed by us and shown on your policy schedule. In the event we agree to an unregulated mooring refer to clause 9.1.

      2. of a suitable design and weighting for your vessel or any vessel being covered by this policy.

      3. Appropriately sited.

      4. Regularly maintained and inspected on at least an annual basis and being kept in good order.

    22. From any claim caused by or arising because of your vessel or any vessel covered by this policy exceeding the speed declared on your proposal form.

    23. From any claim for loss or damage to any appliance, machinery, equipment, or other property which is a computer, or which contains or comprises any computer technology and which:

      1. Fails to perform or function in the precise manner for which it was designed for any reason arising from the performance or functionality of such computer technology or,

      2. arises directly or indirectly from the importation of any software virus whether the importation was malicious, negligent, or accidental.

    24. From any loss of use of the vessel, loss of profits or loss of value.

    25. From the cost of travel expenses and temporary accommodation.

    26. From indirect losses unless specifically covered elsewhere in the policy.

    27. From any punitive or exemplary charges or any costs resulting from any criminal proceedings.

    28. From any loss or damage to your moorings.

    29. From any loss or damage caused by racing if the vessel is not a sailing vessel

      unless agreed by us.

    30. From any incident that may give rise to a claim whilst your vessel is left anchored in open mooring or off a beach or offshore without shelter, and without the presence on board of a person who can take care of navigation, unless underwriters have been informed and such provision is given on the policy schedule.

    31. From any incident that may give rise to a claim whilst navigating between the hours of sun set and sun rise unless we have been informed and such provision is shown on the policy schedule.

    32. From any incident arising from the negligence of you or any representative in charge of the vessel by order and with the knowledge of you.

    33. From any salvage charges unless agreed with us and stated on the policy schedule. Coverage is to a maximum of 10% of hull/machinery sum insured with a deductible of 10% of the salvage sum insured.

    34. From any action brought in a court of law outside of the registered domicile of your insurer as defined on page 5 under Law and Jurisdiction.

    35. Contact with a charted reef and/or grounding during the hours of darkness or when the sun is below 5 degrees from the horizon whether under way or at anchor.

    36. Contact with a charted reef and/or grounding where a forward lookout and appropriate navigation equipment has not been utilised.

    37. Contact with any underwater object whilst navigating the coastal waters of Panama unless we have agreed to such cover and it is shown on your policy schedule.

    1. Piracy will be excluded in any areas highlighted by the IMB (International Marine Bureau) as risk areas.

    2. From any claim if lithium ion batteries are installed unless they are professionally installed with a temperature/charge sensor, stored correctly, with the correct ventilation, are of a marine grade and/or are suitable for marine use (as per manufacturer’s instructions) and are within the manufacturer’s warranty period.

    3. Towing any vessel other than a suitably sized tender unless agreed by us and such provision is given on the policy schedule.

    4. Any weather related incident or claim where the wind exceeds Force 6 on the Beaufort Scale (25-31mph) unless otherwise shown on the policy schedule.

    5. From any claim for the costs of search and rescue services.

Section 9 – General Excesses and Deductions

The excesses stated in your policy schedule will be deducted from all claims including total loss claims after any deductions made for wear and tear and the terms and conditions of these Yacht Clauses. We will not pay for loss, damage or expense for any one occurrence until the amount of the loss, damage or expense exceeds the applicable deductible.

    1. The excess/deductible applicable under this policy is doubled when the vessel is moored, or at anchor, unless said mooring is on a secure pontoon or wall mooring in a recognised marina, or on a permanent riverside mooring. If we agree to an unregulated mooring with no contract in place this will be shown on your policy schedule and the excess/deductible will be trebled.

    2. Prior to the deduction of the policy excess we will reduce the amount we will pay for wear and tear if repairing or replacing the following items would restore them to a better condition than prior to the loss or damage.

      1. Protective covers and canopies

      2. Machinery (excluding outboard motors), batteries and tenders

      3. Paintwork and surface finish

      4. Upholstery and soft furnishings

    3. Claims for outboard motors will be paid based on the current market value at the time of the loss or the sum shown in the policy schedule whichever is the lower.

    4. Claims for outboard motors and tenders will be subject to a US$250

      excess/deductible (or equivalent currency) or the excess amount shown in the policy schedule whichever is the higher.

    5. Claims for personal effects will be subject to a US$250 excess/deductible (or equivalent currency) or the excess/deductible amount shown in the policy schedule whichever is the higher.

    6. Whilst the vessel is racing and cover for this has been agreed by us and is shown on the policy schedule the excess/deductible shown on the policy schedule will be doubled.

    7. In the event of a claim to mast and spars the value will be calculated on a reduction to zero over a twenty year period from the date of manufacture or age of vessel.

    8. In the event of a claim to sails and rigging the value will be calculated on a reduction to zero over a ten year period from the date of manufacture or age of vessel.

    9. In the event of a claim involving marine electronics and/or engines the value will be calculated on a reduction to zero over a ten year period from the date of manufacture or age of the vessel.

    10. The policy excesses/deductibles in respect of all claims will be increased by US$300 (or equivalent currency) during the winter period. The minimum applicable excess during this period will be no less than US$500 (or equivalent currency).

    11. In the event of any claim, accident, or loss against this policy in the first 90 days from inception the policy excess/deductible will be trebled.

    12. The total policy excess/deductible will be doubled for any claim relating to fire

      and / or explosion.

    13. Whilst the vessel is racing and cover for this has been agreed by us and is shown on the policy schedule the deductible shown on the policy schedule will be doubled.

    14. Storm excess/deductible will apply on all claims of Beaufort Scale Force 10 and above.

    15. The policy excess/deductible does not apply to the costs incurred under ‘Storm Extra Expense’. However, if a storm excess/deductible is shown on the policy schedule then this will apply to all partial, total or constructive total losses caused by or resulting from any Storm.

Section 10 – Cancellation and Return of Premium

    1. You may cancel the policy at any time by contacting us or our main agent in writing.

    2. We may cancel your policy at any time where there is a valid reason, subject to giving you 30 days’ notice in writing. Valid reasons for cancelling your policy include but are not limited to:

      1. non-payment of premium

      2. non-cooperation/failure to provide information and,

      3. reasonable suspicion of fraud.

      4. substantial breach of your duties under this policy

      5. if the risk changed substantially since the policy was issued.

      We will refund the premium less the time on risk charge as shown in 10.3 below.

    3. Time on risk charges are as follows:

      1. 1 – 3 Months 25% of the premium

      2. 4 – 6 Months 60% of the premium

      3. 7 – 9 Months 80% of the premium

      4. 9 - + Months Full Premium.

    4. Refunds will be made net of any commissions paid, taxes and fees.

    5. The policy may be cancelled at any time by mutual agreement.

    6. You may cancel the policy within 7 days of purchase whereby you can obtain a full refund less any commissions, taxes, and administration charges unless you have made or are entitled to make a claim under the policy, or another party is entitled to make a claim against you for which you intend to rely on your policy.

    7. In the event of a claim the annual premium must be paid up in full.

    8. There will be no refund of premium if a claim has been paid, notified, or pending during the current period of insurance or where another party is entitled to make a claim against you for which you intend to rely on your policy.

    9. No refund of premium will be made if minimum premium applies and is shown on your schedule of insurance.

Section 11 – Claims

If you are involved in a boating accident, remember to write down as many details as possible, including the names, addresses and contact details of anyone who may have seen the incident. Forward these details to us as soon as you can. If you are unsure what to do after an incident then contact us. You must always act as a prudent uninsured to protect your vessel and minimise any losses.

In the event of any incident that may give rise to a claim you must:

    1. Notify us immediately of the details of any loss or damage anticipated or actual liability, death or injury which is likely to result in a claim under this policy, complete a claim form and forward it to us.

    2. Ensure that your premium is paid in full prior to us initiating the claims process.

    3. Report any incident that may result in a claim within 21 days. Any claims reported outside of this time scale will not be considered by us.

    4. If your vessel is damaged and you are covered under this policy for the cost of repairing such damage, you must obtain two written itemised quotations for repairs. We may require statements and/or photographs and other documentation to support your claim.

    5. Be able to prove your loss. Please ensure you keep:

      1. All documentation relevant to the ownership or purchase of your vessel and all other property insured under this policy in a safe place other than on board.

      2. Any service records relevant to your vessel and any other property insured under this policy in a safe place other than on board.

      3. Evidence to support the amount of any accidental loss or damage.

    6. Assist us and anyone else we appoint, such as assessors, surveyors or lawyers with the investigation and handling of your claim. This includes but is not limited to full details of the loss and any written statements and documents that we may consider relevant to the claim. Failure to assist with the processing of your claim will result in the claim being delayed or declined.

    7. Not admit fault, guilt, or liability, negotiate, or make any offer of settlement or payment, authorise repairs or replacements or defend any claim without our approval. Failure to comply with these requirements will result in your claim being refused.

    8. In the event of the theft of the vessel, tell us the hull identification number if the vessel has one.

    9. In the event of theft or malicious damage obtain a crime reference number from the police.

    10. Take all possible steps to prevent further loss or damage to your vessel. Steps include but are not limited to:

      1. Dry the engine

      2. Drain oil and fuel

      3. Flush out the engine with hose or dewatering fluid

      4. Drain again

      5. Fill with oil and dewatering fluid

      6. Take to repairer or mechanic as soon as possible

      7. Clean and dry the vessel

      8. Spray all electrics and wiring with a suitable substance to prevent corrosion.

      9. Act as a prudent uninsured.

    11. Where you make a claim for loss or damage to your vessel, we may in some circumstances, require you to:

      1. Dismantle your vessel; or

      2. Authorise us to dismantle your vessel, so we can assess your claim for the relevant

      loss or damage and/or decide if it is valid. If you do not agree we may refuse to assess and/or pay your claim.

      Where we determine that the claim for loss or damage to your vessel is:

      1. Not covered by your policy, you will be responsible for the costs of the above dismantling as well as any costs associated with the dismantling (including but not limited to any diagnosis, reassembly, repair and/or replacement costs).

      2. Covered by your policy, we will settle your claim in accordance with the terms and conditions or your policy.

    12. We have the right to settle any claim made against you by a third party.

    13. We have the right to bring a claim or legal proceedings in your name to recover any sums that we have paid.

    14. If a claim or legal proceedings are brought against you for liability that is covered under this policy, you must immediately notify and send us every demand notice, summons or other legal papers received. We reserve the right to have sole control of the defence and naming attorneys to represent you.

    15. We may replace the vessel or any insured item with one of similar age, type, or condition even if the appearance is not the same.

    16. We will not pay the cost of replacing any undamaged item or parts to match parts that have been repaired or replaced because of a claim under the policy.

    17. We will not pay more than the sum insured for any item listed in the schedule of insurance less any applicable excess or other deduction as stated in Section 9, subject to the terms and conditions of the policy.

    18. You must send two repair estimates and we may request that you take your vessel to another repairer. You must get a written agreement from us to start repairs before we will consider them. You must make vessel available to us for our inspection. It is your responsibility to ensure that you are satisfied with the repairs to your vessel.

    19. If we make a total loss payment for your vessel, the vessel becomes our property, and we will keep the proceeds of any salvage sale.

    20. You are required to pay any applicable excess/deductible shown on the policy schedule, for each claim made under your policy, including total loss claims. Third party claims will not be dealt with until the relevant policy excess/deductible is received by us.

    21. Acceptance of this policy and payment of the premium constitutes an acceptance by you of all legal costs incurred by you or any other party in the event of a dispute with us. No suit or action may be brought against us unless there has been full compliance with all terms of this policy and the action is brought within 6 months of the date you first have knowledge of the loss.

    22. Make any payments necessary once approved by us and forward final settled invoices for reimbursement within the terms and conditions of your policy.

    23. In the event of abandonment whereby you abandon the vessel and make no attempt to mitigate the loss, your claim will be invalidated and the policy can be voided from inception.

Section 12 – Duty of Disclosure

    1. You have a duty to tell us before the policy is entered, every matter known to you which you know or

      1. A reasonable person in the circumstances could be expected to know.

      2. Is relevant to our decision whether to insure you and whether any special conditions need to apply to your policy.

    2. This duty applies when you renew, extend, vary, or reinstate the policy.

    3. You do not need to tell us about any matter that:

      1. Diminishes our risk

      2. Is of common knowledge

      3. We should know as an insurer, or

      4. We tell you we do not need to know.

    4. Everyone who is insured under this policy must comply with this duty.

    5. If you or they do not comply with this duty, we will cancel the policy and reduce the amount that we would pay if you made a claim, perhaps to zero. If fraud is involved, we may treat the policy as If it never existed and pay nothing.

    6. All insurance provided by this policy will be null and void if you, at any time, either intentionally conceal or misrepresent any fact, regardless of materiality, or if you misrepresent or conceal any material fact regardless of intent. No action or inaction by us will be deemed a waiver of this provision.

Section 13 – Complaints Procedure

When we cannot help

Please do not ask for help from a lawyer or legal representative. If you do, we will not pay the costs involved even if we do accept the claim.

We take pride in the service provided to you, however if you are unhappy with any aspect of the handling of your insurance, please contact the Complaints representative dealing with complaints for your broker (if you have one) or the Edward William customer service team using the contact information on Page 3. If for any reason, they are unable to resolve your complaint immediately it will be referred to the underwriting insurer’s complaints department and subsequently if you are still not satisfied you can refer your claim to a local ombudsman. Full details will be provided at each stage of the process.

Marine types of insurance are not covered by any Financial Services Compensation Scheme (FSCS)

Section 14 - Endorsements.

We can adjust the standard policy using the endorsements below to ensure that your individual requirements are met:

Agreed Value – If shown on your insurance schedule we guarantee to pay the hull and machinery sum insured agreed in the event of a total loss or constructive total loss claim. Agreed value will only be applied once we are in receipt of proof of purchase (if within the last 12 months) or a valuation and recent photographs of the vessel and said documents have been approved by us. Until these documents are approved the policy will be one of indemnity/market value (See Market Value definition in Words With Special Meaning). To maintain this coverage a fresh valuation is required every two years. Hull and Machinery coverage is limited to the valuation amount.

Breach of Warranty – Cover is endorsed to include the satisfaction of any loan balance outstanding from an authorised source, subject to their prior listing on the policy schedule, for any unwarranted constructive total loss up to the maximum suminsured payable after applicable deductibles – whichever is the lesser.

Builders Risks – Builders risks to apply including sea trials within one-mile radius of either the boat yard or home port for vessels undergoing construction or complete restoration.

Commercial Fishing – Cover is extended to include static fishing and the use of nets, pots, lines etc. but does not include loss or damage to any fishing gear by any cause whatsoever or any liability arising from the positioning of such gear. It is also warranted that the insured and/or the insured’s qualified skipper be always on board and in control of the vessel when so used.

Diving Parties – Cover is extended so that the vessel may be used for charter diving parties, but cover does not include liability to or any of the divers whilst in the water. It is also warranted that the insured and/or the insureds qualified skipper be always on board and in control of the vessel when so used.

Houseboat/Live-aboard – Cover is extended to allow residential occupation by the insured and/or the insureds family or as otherwise advised and accepted by us.

New For Old – If shown on your policy schedule then in the event of a claim we will replace with the new equivalent any equipment damaged beyond economical repair that is up to five years of age where proof of age or purchase can be provided.

Night Navigation – Cover is extended to include navigation between the hours of sunset and sunrise. Any policy excess applicable to all sections of the policy will be increased by fifty percent (50%) whilst the vessel is being navigated during these hours (whether under way or at anchor). All other policy terms and conditions apply.

Non-Emergency Towing – Cover is extended to include the cost of towing your vessel to the nearest safe port or haven following a mechanical or electrical failure up to the limit as specified on your policy schedule in any one policy period and subject to thedeductible listed for every claim.

Racing Risk – Permission is given for this vessel to be used for racing as per the terms and conditions of these Yacht Clauses under Section 6.

Single Handed Sailing – Permission is given for this vessel to be sailed single handed by the owner or any person whose details of experience etc. have been submitted to and accepted by us within the geographical limits authorised on the schedule.

Subject to the terms and conditions of these Yacht Clauses.

Storm Cover Force 7 to 12 (Standard Storm) – Cover extended from the Beaufort Scale maximum of Force 6 to a maximum of Force 12 but excludes all named and numbered windstorms and flooding. All other conditions apply.

Storm Cover Force 12+ (Full Storm) - Cover is further extended subject to already having the endorsed Standard Storm to include wind speeds in excess of Force 12 and all named and numbered windstorms as well as flooding. All other terms and conditions still apply.

Storm Preparation – Cover is amended to waive the sufficient space to avoid toppling and mast removal requirements when lifted ashore as part of your storm preparation coverage conditions. In the event of a storm claim the storm policy excess/deductible listed on your policy schedule is doubled. All other conditions apply.

Taken Ashore – It is warranted that the insured vessel will be taken and kept ashore on all occasions after use and in any event overnight and kept in a locked building.

Unattended – If shown on your policy schedule then we will provide cover when the vessel is left unattended at anchor for a maximum of 8 hours. Subject to satisfactory and suitable anchor arrangements and weather conditions.

Uninsured Boater – If shown on your policy schedule then we will provide cover in respect of any sums which you are legally entitled to recover from a third party vessel, owner or operator, but which cannot be recovered due to the third party having no marine liability insurance, no realisable assets or they cannot be identified. The sum insured shown under this section on the policy schedule is the maximum payable in any one policy term irrespective of the number of claims made.

Definitions - Words With Special Meaning

Throughout this policy most words and phrases that have special meanings appear in bold. Only the pronouns “we”, “our”, “us”, “you”, “your”, and “yours” are defined but do not appear in bold. This section defines some of the more general terms used in this policy. Bold terms that are not listed in this section, are defined within the sections they appear.

We, us, our refer to Edward William Insurance Services LLC.

You, your, yours refers to the insured named on the policy schedule.

Accidental Loss or Damage means physical loss and/or damage which occurs by accident. An accident is a happening that is unforeseen, unavoidable, and unintended by you.

Actual Cash Value means the replacement cost of the lost or damaged property less depreciation.

Agreed Value means the vessel sum insured shown on the policy schedule or any endorsement to the same. This will be backed up by a recent survey and valuation to support the value requested.

Bodily Injury means physical injury, sickness or disease sustained by a person including death resulting from any of these and as a result of ownership or operation of the insured vessel.

Combined single limit means the maximum amount we will pay towards any sum or sums that you or any other insured person becomes legally liable to pay because of any one occurrence arising from your operation of the insured vessel. If the policy schedule shows multiple liability limits, the maximum amount we will pay in respect of any one occurrence or series of occurrences arising from a single event, is limited to the amount shown as the combined single limit irrespective of the number of claims or claimants arising from the said occurrence, or single event and in no circumstances shall there be any aggregation of liability limits shown on the policy schedule more than the combined single limit that applies.

Constructive Total Loss where the cost of replacement or repair of your vessel exceeds the sum insured or where we consider that the cost of repair would exceed the market value of the vessel.

Containment means any petroleum product, chemical, lubricant or solvent normally associated with the use and operation of a watercraft.

Deductible means the amount shown on the schedule which you must pay first when you make a claim under your policy. This amount may be deducted from your final settlement or requested prior to settlement.

Design Defect means a flaw in the structural plan of the insured vessels hull or machinery, or any of its components. Design defect does not include wear and tear, gradual deterioration, corrosion, rust, electrolysis, osmosis, weathering, latent defect or Manufacturers defect.

Divers means any person using underwater artificial breathing apparatus or aids whether mechanical or not and/or submersible mechanical or electrical devices including, but not limited to, submarines, diving bells and/or diving suits.

Excess means the amount shown on the schedule which you must pay first when you make a claim under your policy. This amount may be deducted from your final settlement or requested prior to settlement.

Family means any person related to you by blood or marriage, or adoption (Including a ward or foster child).

Fire and/or Explosion means accidental loss or damage caused to the vessel from the combustion of materials.

Gradual Deterioration is the gradual degradation of the vessel caused by wear and tear, rust, rot, oxidation, corrosion, electrolytic or galvanic action, wasting or weathering.

Hull means the hull, deck, cabin, deck fixtures, equipment, appliances, and fittings on or below the deck or cabin top of the vessel.

Indemnity means that we will cover the market value for the replacement cost of the vessel and its parts as it stands at the time of a claim.

Insured means you and any person, firm, corporation, or legal entity that may be operating the insured vessel with your prior permission. However, this does not include a paid captain or any paid crew member of the insured vessel. Nor does it include any person, firm, corporation, or other legal entity or any of their agents or employees operating a shipyard, boat repair facility, marina, yacht club, sales agency, chartering agency, yacht broker, boat service station, salvor, towing service or similar organisation.

Latent Defect is a hidden flaw, weakness or imperfection in the design, manufacture or build of the vessel that is not apparent by routine inspection and is not the result of gradual deterioration or a lack of maintenance.

Marine Electronics means electronic devices designed specifically for marine navigation, including fish finders, chart plotters and communication.

Machinery includes but is not limited to main or auxiliary engines including gear boxes, starter motors, alternators, electrical and mechanical equipment, cables and fittings, hydraulic equipment, piping and fittings, boilers, shafts, exhaust systems, generators, air conditioning equipment, tanks, pumps, and water makers.

Manufacturer’s Defect means the improper, incorrect or inadequate manufacturing process including osmosis of the insured vessel’s hull or machinery or any of its components. It does not include wear and tear, gradual deterioration, corrosion, rust, electrolysis, weathering, inherent vice, latent defect or design defect.

Market Value means the sale value of the vessel, vessels parts, personal belongings and/or navigation equipment immediately prior to the claimed loss or damage, considering the condition and age of the items and the location of the vessel. Maximum Design Speed is the maximum speed that the vessel is designed to achieve under power or sail as stated by the vessel manufacturer.

Navigational Limits means the cruising area shown on the policy schedule of insurance under the section named cruising range.

Occurrence means a single event, or an accident or series of accidents caused by a single event.

Operate, Operation, Operating means to navigate or be in control of the insured vessel.

Personal Effects means items of a personal nature that you own and use specifically for the vessel that would not normally be sold with the vessel. This includes but is not restricted to portable navigation equipment, fishing gear, diving equipment, clothing, shoes, waterproof gear, wetsuits, portable electrical goods. Cover for personal belongings is based on Market Value at the time of the loss or claim provided that such property is situated on the vessel at the time of the loss.

Property Damage means damage to tangible property.

Personal Watercraft means a vessel which uses an inboard engine powering a water jet pump as its primary source of motive power and which is designed to be operated by a person sitting, standing, lying down or kneeling on the vessel.

Policy the policy of insurance is represented by this document together with the marine insurance policy schedule, warranty and conditions form, the completed application/proposal form and any applicable endorsements.

Race or Speed Trials means any event involving speed and/or of a competitive nature, including, but not limited to, Regattas and/or Rallies, or timed events. ‘Preparing for a race or speed trial’ means any navigation of the vessel necessary to ensure eligibility of either you or your vessel to participate in a race or speed trial. Replacement Cost is the least of the following amounts:

  1. the applicable limit shown on the declarations page.

  2. the cost to repair or replace the lost or damaged property using other new property of comparable material and quality, used for the same purpose, or starting the fifth year from the date of manufacture, the cost to replace the lost or damaged property with substantially identical property.

Resident means any person who lives in your home.

Salvage means those reasonable charges and expenses incurred for the removal/recovery of the vessel if damaged and/or sinks accidentally.

Schedule is the document issued to you by us which details coverage, values, and additional limitations. Otherwise known as the certificate of insurance or certificate of currency.

Seaworthy means fit for the vessel’s intended purpose. Seaworthiness applies not only to the physical condition of the hull, but to all its parts, equipment and gear and includes the responsibility of assigning an adequate crew. For the vessel to be seaworthy, its crew must be competent, experienced within the navigational limits allowed under this policy and appropriately licenced. The vessel must be suitable for its intended use and maintained in a condition conducive to it use.

Sinking means when the vessel has sunk as far as is physically possible for the vessel to sink.

Storm means tropical depressions, tropical storms, hurricanes or flooding as designated by a National Weather Service and/or National Hurricane Centre, whether named or not. Basic cover allows for winds of Force 6 on the Beaufort scale (25-31mph). Standard cover allows for winds up to Force 12 on the Beaufort scale (74-95mph) but excludes named or numbered tropical depressions, tropical storms, hurricanes or severe flooding. Enhanced cover for all storms, includes those named and/or numbered and for winds over Force 12 on the Beaufort Scale (over 96mph) and severe flooding.

Sum Insured is the value of the vessel or other insured property as specified in thepolicy schedule.

Tender means an auxiliary boat or dinghy which is carried on deck or towed behind your vessel that is used as a lifeboat or way of transportation to your vessel, excludes personal watercraft unless agreed and extended in writing. The vessel tender must be marked with the name and/or registration number of the parent vessel.

Trailer refers to the insured vessel’s trailer, used exclusively for that purpose. Vessel means the vessel described on the schedule, including machinery, electrical equipment, sails, masts, spars, rigging, and all other equipment normally required for the safe operation and maintenance of the vessel and situate on the insured vessel, which would normally be sold with the vessel. This does not include spare parts of the insured vessel, the insured vessel’s life raft, tender or dinghy, unless the same has been declared on the schedule, nor does it include any items being stored on premises other than on-board the insured vessel.

  

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