When seeking insurance for our boat, it is important to understand that the price of the premium should not be the primary criterion for choosing. The products available on the market are varied, and as a result, premium prices also vary. To assist readers, we will try to organize and explain them in a more understandable way.

When insuring our boat for hull and machinery (Hull and Machinery / Kasko) or simply comprehensive insurance (as many Greeks tend to call it), it is important to know that there are two main categories of products: (i) Named Perils and (ii) All Risk.

The category we choose automatically implies a series of consequences. In the Named Perils category (better-known products in this category include the Institute Yacht Clauses ), the coverage is strictly limited to the scenarios mentioned in the terms of the contract. On the other hand, All Risk policies offer much broader coverage, covering any case that is not explicitly excluded in the terms. In the first category, the burden of proof lies with the insured, while in the second, it lies with the insurer. In simple terms, in the first, the insured must prove that the incident is covered by the contract, while in the second, the insurer must prove the exclusion. In both cases, understanding the terms when purchasing insurance is essential, as realizing the terms after the damage occurs can bring unpleasant surprises. In addition to the basic terms, it is important to also look for the conditions for the validity of our coverage – if they are provided – the so-called "warranties." 

Furthermore, it is important to know which law governs our contract. That is, which law will apply in case of a dispute with the insurers over a future claim. For example, how sure are we that we understand and accept English, Italian, French, or German law, which govern many contracts circulating in the Greek market? The terms Agreed Value and Market Value must also be clear to the insured, as they determine the amount the insured will receive in the case of total loss, regardless of the amount stated in the contract. At the same time, we need to look for the exact term that describes the obligation for compensation in case of total loss, as it may foresee replacement with a similar boat – something that might be an unpleasant surprise for policyholders who prefer financial compensation. The concept of the deductible also requires special attention, as there is always an initial amount that will be deducted from the compensation, and this amount is what the insured pays for each claim event. This deductible may be fixed or increase technically due to other parameters, such as the age of the boat. For this reason, the term new for old should ideally be included in our coverage. With this term, we ensure that additional reductions due to the boat’s age will be avoided.

Hull and Machinery insurance is strongly recommended for every boat owner, as both the boat and its equipment are significant assets. This greatly ensures that, regardless of the fault of third parties, the boat owner will primarily receive compensation from their insurance company and be able to repair the damage immediately. The more comprehensive the program chosen, the better the compensation in the event of damage.

At the same time, for liability coverage, which is the simplest coverage and the only mandatory one in Greece according to the current Greek law 4926/2022, we must know that there are products covering the minimum requirements that this law stipulates to allow the boat to legally sail in Greek waters. However, there are also more specialized products created to fully and properly cover the interests of boat owners, offering richer coverage, both in terms of scope and insurance limits.

For larger boats or more complex cases, there are various complementary products available on the market, such as P&I coverage, owner liabilities towards crew, accident coverage, and many other offered solutions that one should seek in order to enjoy carefree moments with ones boat.

ΒΥ CHRISTOS KONTOVASILIS – MANAGING DIRECTOR OF PANTAENIUS HELLAS