Risk Management Advice for Your Yacht-Owning Clients

Owning and setting sail on your own yacht is a dream that people work hard to achieve. But maintaining the integrity of the yacht and keeping everyone on board safe at the same time takes a lot of effort and planning.

Good seamanship requires attention to detail when it comes to risk management and keeping safe on the seas. Being able to put into context what clients of Personal Lines Insurance Wholesalers are facing when they own a yacht is important.

Here’s a look at risk management for yacht-owning clients.

Yacht Safety

Risk management includes identifying the hazards of owning a yacht as well as being able to assess the risks and implement changes required to cut down on risks such as injury, boat damage, and even death. Risk analysis starts with a fully thorough look at what you’re up against on the water including identifying possible consequences and the chance they’ll actually happen.

All risks that could potentially injure or harm someone must be identified and for each hazard, the likelihood and frequency of exposure should also be examined. Once all this is determined and outlined, the action to eliminate or cut down on the risk should be prioritized. Risk should be reduced as much as possible by those who own the yacht.

Yacht Safety Education

Sudden changes in weather or sea conditions and visibility can make a day out on the water more dangerous and offer more exposure to risks. Navigating a yacht, or any vessel for that matter, requires continuous vigilance and observation. Someone who owns a yacht should be sure to hire operators who are able to err on the side of caution and safety when it comes to sailing at any time.

Those who work on vessels go through years of education and training in order to be able to safely operate their ships. For yacht owners who feel they are up to the challenge of navigating on their own, it’s recommended that they obtain a boating license through an approved boating safety course. Some state boating license requirements should be consulted in order to be on top of the most current requirements.

Insuring a Yacht

Like all vessels or vehicles, it’s important that the right level of insurance is provided in order to protect against potential risks. It could be a wreck on the high seas or a bump and scratch issue while docked–no matter the problem, being sure to have an up-to-date insurance program in place will add peace of mind for yacht-owning clients.

Personal lines insurance wholesalers should lay out what risks their clients face and how they can better protect their future with yacht-specific coverage. This unique program can help provide resources to yacht owners after they suffer some form of loss or damage to their property during ownership.

Safety Briefing

Those who own a yacht should be sure to pad their safety protocol through pre-launch briefings. A safety briefing with the crew and passengers will keep everyone informed and every bit of risk transparent. While no one wants to go onto a vessel thinking that they could be injured or even worse, having a high level of honesty and reality will increase awareness.

According to the U.S. Coast Guard, nearly 4,300 accidents took place in 2017 and included 658 deaths and nearly $46 million damage to property as a result of recreational boating. Yacht owners should be sure to be aware of the facts while sailing and consult with the USCG to receive any further information, planning, or assistance, including safety equipment. From flares to smoke signals to floating safety devices, each vessel needs to have the appropriate items to keep everyone safe and to raise the chances of being assisted while out on the water if in trouble.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect, and gratitude to help our clients succeed and place business in specialized markets. For more information about our products or to become an agent, please contact us today at (855) 248-1480.