Why is skipper liability insurance policy worth having?

• Because, as a general rule, you are personally liable – with all your present and future assets – for all the damage you have culpably caused, whether they be bodily or material.
• Because your personal liability insurance policy does not cover the liability claims arising from the actions of the skipper or crew.
• Because as a skipper, you are also liable for the crew members.
• Because liability disclaimers related to crew members may not be applicable in case of third parties (e.g. pension claims by the injured party).
• Because you are unaware of the actual extent of insurance cover on a chartered vessel. Too often, the TPL insured sum is limited to the value of the ship, which may be not enough concerning the unlimited personal liability. In many cases, only specific, listed forms of damage are covered, for example, damage in the event of a collision, etc. But you will be held liable for all damage.
• Because you do not know whether there is any insurance cover at all, nor whether the premium has been paid on time, which in turn could mean that the insurer is released from all obligations. In such case, you have no insurance cover whatsoever!
• Because ships sailing under foreign flags are normally insured under foreign insurance terms and conditions and in the local language, which means that it is virtually impossible for you to assess the actual scope of the insurance cover.
• Because no other known liability insurance product covers liability claims presented by the yacht owner for damage caused to the chartered yacht itself as a result of skipper’s gross negligence.