Law: How yacht owners should insure and protect their works of art on board
Boote Exclusiv
· 24.09.2025
For many owners, superyachts are like a floating second home in which they want to relax and feel as comfortable as possible. This includes an interior that has been designed according to the owner's preferences - often including carefully curated works of art. These not only count as a decorative element and delight the culturally spoilt eye, but are also considered good investments - just like rare cars, watches and unusual properties. In fact, the interior is sometimes adorned with works of art that are significantly more valuable than the ship itself.
Anyone taking part of their art collection with them on maritime voyages should know that there are special risks lurking on board. In practical terms, humidity, temperature fluctuations and the particular risks of damage and theft must be taken into account. From a legal perspective, the question arises as to how art can be insured against these particular risks. What needs to be considered when buying and transporting across borders? What are the obstacles under customs law?
Risks for works of art on board yachts
In museums, galleries and exhibitions, works of art are particularly protected by the conditions of the exhibition space; the curator will create the ideal environment for the art on display. This is fundamentally different on board a yacht: an art expert is rarely to be found; the works have to adapt to the space on board (which sometimes leads to a Salvador Dalí hanging lengthways instead of crossways!) Art on yachts is also exposed to particular physical risks. On the one hand, ship movements can lead to damage such as cracks, breaks or detachment. On the other hand, humidity, temperature fluctuations, UV radiation and salty air can damage the works.
An oil painting on deck 5 of a highly vibrating motor yacht ages differently than in the MoMA due to the vibrations, the air conditioning and the sometimes Mediterranean, sometimes tropical humidity. However, it is not only the natural conditions at sea that can pose a risk to works of art. There is also the risk of damage or even theft. Demolition during a shipyard stay or by unknowing crew members is one of the annoyances that owners may have to deal with. Wiping a dusty oil painting with a damp cloth can significantly reduce the value of the work. Damage caused by champagne corks is also not uncommon, as numerous examples show. "In most cases, damage to works of art is caused by people," says Oxford-trained art historian Pandora Mather-Lees, who trains crew members in handling art.
During shipyard visits or stops in unsecured harbours, valuable works are sometimes inadequately protected or stored externally, which entails considerable risks. But what protective measures make sense and what can yacht owners do to protect themselves?
Insurance cover and protection of works of art
Art used to be insured under transport and household contents insurance policies. This is rarely the case today. On the contrary, art insurance has emerged as an independent segment and is firmly established. There are products specially tailored to art. In contrast to household contents insurance, these also cover other risks as part of all-risk cover. They can be individualised and adapted to specific needs.
But even with exclusive policies for works of art, attention is required. Only those works of art that are specifically listed in the insurance policy are insured. To ensure that there is no doubt about the insurance cover of individual works in the event of a claim, it is advisable to catalogue all works of art in a precise list. In addition to the exact description of the works of art, the value should also be recorded, supported by appraisals that are as up-to-date as possible. If the value of the respective works of art is not recorded or the appraisal is too old, this can lead to underinsurance.
In addition to regularly updated valuations prepared by experienced experts, not only the sums insured, but also the insurance conditions must be regularly adjusted. It also makes a decisive difference to the insurance company in which areas the yacht is used and for how long, and whether it is only used by the owner or also by charter guests. Only an individual risk analysis and precise examination of the insurance conditions will ensure that the owner is properly insured in each individual case!
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Special tax features and customs
There are also special aspects of tax law in relation to art on board. Under international law, ships are considered floating parts of the territory of the state whose flag they fly. However, this principle does not apply comprehensively. If art is installed on board a ship, the place of delivery determines the relevant tax law. For example, if the art is delivered from the USA as part of a refit in northern Germany, import VAT is the first thing to consider, depending on the yacht's further whereabouts or itinerary.
The situation is different for deliveries from the EU. In this case, the tax regulations for intra-Community deliveries apply. According to these regulations, equipment for seagoing vessels can also be supplied tax-free under certain conditions. This may be attractive and play a role in the choice of art. In this case, however, the ownership structure - of the yacht on the one hand and the art on the other - must also be taken into account. This is because, like yachts, aeroplanes and real estate, valuable works of art are often held by ownership structures. Typically, the legal owner of the yacht is not the same as the owner of the artwork, although the same person is economically behind both.
Customs law aspects must also be kept in mind. After all, it is in the nature of things that a yacht regularly crosses national borders. Art that is permanently installed on ships can be classified as marine equipment, which means that free transport across national borders is guaranteed by international agreements and national regulations. Special authorisations for a cross-border voyage are then not required - provided that the stay in the country is not permanent. If it is longer, planned or unplanned, customs declarations must be checked and carried out depending on the country of origin and destination. Depending on the jurisdiction, this process involves a considerable amount of bureaucracy. It should be carefully prepared and handled in compliance with all relevant regulations. The owner or his yacht manager should find out in advance about the specific requirements at customs and, if in doubt, seek professional advice from art experts and lawyers. Careful preparation of documents and compliance with the applicable import and cultural property protection regulations are essential if delays or conflicts are to be avoided. Otherwise, at least in the worst-case scenario, there is a risk of confiscation to temporarily secure assets, i.e. "art overboard".
Experts for all questions of yacht law
The yacht lawyers Dr Tim Schommer (tim.schommer@clydeco.com) and Dr Volker Lücke (volker.luecke@clydeco.com) have been advising yacht clients from Germany and abroad for over 18 years. They advise on the planning and construction phase, the purchase and sale, the owner structure, yacht operation including insurance, crewing and charter as well as the handling of damage and third-party claims.
