Guide: Boat insurance - Which boat insurance is right for me?

A fair-weather weekend trip on a motorboat is a leisurely affair. In this situation, neither the skipper nor his crew or guests think seriously about the fact that the risk of an accident is higher on a boat trip than on a normal stay on land.

Without dramatising the risks, we would like to make it clear below that everyone involved in motorboat sports has the opportunity to at least minimise their individual risk by taking out insurance. We are deliberately talking about the possibility and not a must, as there is no legal obligation for water sports enthusiasts or those involved in water sports to take out insurance.

Are you a passenger?

You simply travel more or less frequently on different boats belonging to friends, acquaintances or relatives. You take the helm from time to time, but are not the skipper in charge?

Are you a yacht owner?

Do you own a motorboat that is suitable for shorter but also longer, i.e. multi-day trips? Does the boat have a permanent berth in a harbour? Family members, friends or acquaintances are more or less frequently on board?

Are you a charterer?

Are you hiring a boat at home or abroad for yourself and your family or together with friends and acquaintances to go on a holiday cruise? Are you taking part in the trip as a crew member or even as a skipper?

You are a passenger

After § Section 823 of the German Civil Code Everyone is liable to an unlimited extent for damage that they culpably cause to others. And with all of their present and future assets. To prevent this, there is the Personal liability insurance. Nobody should go through life without such a policy. It covers the everyday risks of private individuals and includes liability arising from the practice of sports (except shooting, gliding and certain martial arts). Damage caused intentionally is also excluded from the obligation to pay benefits. Anyone who goes boating with friends, whether sporadically or regularly, is therefore on the safe side with personal liability insurance.

If, for example, expensive equipment is broken, the boat is damaged or another person suffers a serious injury due to the negligence of a crew member, the skipper will initially have to answer the question of whether he has instructed his crew correctly. However, if it turns out that the skipper did everything correctly, the person responsible will be held accountable - or their insurance company.

Experts recommend a sum insured of at least three million euros for personal injury and property damage and at least 500,000 euros for financial losses.

A passenger also runs the risk of being injured on board. Sometimes so much so that permanent physical impairments are the result, leading to the partial or complete loss of the ability to work or earn a living. Even if an accident cannot always be prevented, the financial consequences can be minimised. This is where private Accident insurancebetter still a Occupational disability policyso as not to be dependent solely on state support in the event of a permanent loss of earnings.

Accident insurance pays out in the event of full or partial disability.

The accident insurance benefit is intended to compensate for the loss of earnings resulting from the accident, cover any necessary disability-related modifications to the home or house and enable additional aids or therapies not covered by the health insurance or pension insurance provider.

The German Insurance Association has the following rule of thumb for the amount of cover: 30-year-olds should insure six times their gross annual income, 40-year-olds five times and 50-year-olds four times their gross annual income.
Below www.bundderversicherten.de The following is a list of other important aspects that everyone should pay attention to when taking out private accident insurance, such as the agreement of a so-called progression or the waiver of an accident pension agreement.

If the family of a passenger should not suddenly find themselves in financial difficulties, especially in the worst-case scenario of an accident resulting in death, a Term life insurance further. The sum insured should correspond to at least one, preferably two years' gross income so that the surviving dependants have enough time to reorganise their lives without financial pressure.

You are a yacht owner

Since a touring boat can cause far greater damage to other people's property than a small pleasure craft - for example, the side of a neighbour's boat can be scraped by the anchoring gear when entering the harbour - no-one should enter the harbour without Boat liability insurance cast off the lines.

Also a Comprehensive insurance is strongly recommended. It covers damage that occurs to your own boat. For example, if a propeller is destroyed due to grounding or the boat flips over in heavy weather and water ingress paralyses the electrics/electronics.

The boat hull insurance may also step into the breach if a third party causes damage but does not have to pay for it by law - keyword: strict liability vs. polluter pays liability - or cannot do so due to an acute lack of funds. Or if the other party involved in the accident has simply absconded.

In the latter case, there would only be money from the liability insurance if a special Bad debt cover has been agreed. Sometimes this is included in the basic policy, sometimes you have to buy it separately. However, the prerequisite is that a title has been obtained in court against the party responsible for the damage.

But beware: the breakdown policy only pays compensation in the amount of the statutory liability. In concrete terms, this means that the replacement value is the current value, not the replacement value. So if, for example, the outdated railing or gunwale has to be replaced due to a collision, the insurance will only reimburse part of the costs. The improvement in value resulting from the repair of the damage will be deducted from the invoice.

Experts therefore advise that such damage should be covered by boat hull insurance. Provided that this not only covers the current value of the boat, but also its original purchase or market value in the form of a "fixed valuation". It must also be stipulated that the insurance company will waive "new for old" deductions in the event of partial damage. If this is the case, the new mast would be fully reimbursed by the hull policy, for example. Or at least the difference to the new value if the opposing party's liability reimburses the current value.

Please note that not every "fixed premium" is actually fixed. When concluding the contract, make sure that the sum insured is actually paid out in full in the event of a claim. This is best confirmed by the insurer. Otherwise there may be unpleasant surprises if, in the event of a claim, only the current market value is paid out instead of the sum insured stated in the contract. An indication of a "fixed premium" worthy of the name is if the term "replacement value insurance" appears in the policy conditions.

Some insurers also feel bound to the "fixed rate" only for a certain period of time, for example ten or 15 years. After that, the insured person must expect deductions.

Finally, a note for all those who like to leave the national borders behind on their own keel: A Travel health insurance should then be compulsory. It costs little, but in the event of a claim it will cover the additional costs that may be incurred if medical treatment is required abroad.

That's all a yacht owner needs at first - even if the insurers have other offers up their sleeves. For example the Passenger accident policy. In addition to the policyholder, it is also intended to protect friends, strangers or relatives against the financial consequences of an accident on board. However, it only applies when travelling by motorboat, at best when going ashore between two legs, but not in everyday life.

In addition: If a skipper or crew member culpably causes an accident in which passengers are injured, the boat's liability insurance will apply within the scope of statutory liability - if the policy is good.

As a rule, there is only no money from the boat liability insurance if the boat is damaged or the policyholder, usually the skipper or owner, is injured as a result of the culpable actions of a crew member. However, at least as far as personal injury to the policyholder is concerned, there are providers whose boat liability insurance even covers this risk.

One argument in favour of passenger accident insurance is that it can be difficult to enforce liability claims against third parties, especially abroad. And: money is also paid even if the skipper was not at fault.

There is also plenty of room for debate about the benefits of a special Legal expenses insurance for boat owners. Basically, it can be said that anyone who can manage without such a policy in normal life will probably be able to do without it for their hobby.

Also uninteresting for most motorboat drivers: the Confiscation insurance. At least if you are travelling inland or on the North Sea and Baltic Sea, you will rarely find yourself in a situation in which the boat is chained up by the police. And if you do, you can assume that the action taken by the local authorities is lawful and not arbitrary. The situation is undoubtedly different in some Mediterranean regions. Such a policy could make sense there.

You are a charterer

The Personal liability is not liable for personal injury or damage to property caused by a skipper to third parties. Fors own boat there is the Boat liability. But what should you do if you want to charter a boat for a holiday cruise? Then the Skipper liability.

It covers claims made against the skipper by injured crew members and third parties. It also applies even if the skipper cannot be accused of culpable behaviour. Some providers even offer insurance cover in the event that the skipper grossly negligent has acted.

The following applies in particular to charter trips abroad: it is not always possible to reliably determine whether the charter company has taken out a boat liability policy for the rented boat, how high its Cover and whether the Premiums have been paid on time. In short, the skipper does not know whether insurance cover exists at all and, if so, whether it is sufficient

If not, he is liable with his private assets in the event of damage. Skipper liability also protects them against this. The following option is interesting for boat owners who also want to charter: With many insurance companies, owners who have taken out boat liability insurance for their own boat can benefit from free skipper liability insurance.

If the chartered boat is not available for the next crew after the trip due to damage for which the skipper or his crew is responsible, the charter company shall Compensation for damages demand. The Receivables and charter default cover. It is sometimes included in the skipper's liability insurance, sometimes only available for an additional premium. The same applies to the Confiscation insuranceHowever, this only makes sense in exotic areas.

It is not uncommon for a dispute to arise during a holiday cruise if a crew member damages the boat or equipment. Then everyone's deposit is lost. To prevent this from happening, the crew can sign an appropriate Bond insurance finalise.

Security deposit insurance is available from various providers. It is often limited to a specific cruise. If you charter more frequently, it may be cheaper to take out an annual contract.

One Travel cancellation policy is needed if you book well in advance or want to go on a trip with a large crew. In the charter sector, it protects against the skipper dropping out and not being able to be replaced, so that the entire trip has to be cancelled, whether before the start or during the trip. If an individual crew member cancels, the insurance covers their share of the travel costs.

Finally, charterers who are covered by statutory health insurance should also refer to the International travel health insurance pointed out. Private health insurance policies often already include cover abroad. Credit cards also frequently include corresponding insurance cover.

The general rule is: determine your own needs and the probable risks. Then check the insurance offers and compare prices. Some insurers offer various charter insurance policies as complete packages, while other providers offer each policy individually.