Insurance For The Yachting Industry
Colin Dawson whose company The George Group partners with Howden looks at how the industry should be working towards increased professionalism, client confidence and stability for businesses in an increasingly challenging environment. Most professional associations in Europe or the USA require their members to carry insurance to cover their activities and whether this is a requirement or not it’s good practice to look at what covers can help your business survive in the event of difficulties. Having proper insurance in place will also give your clients confidence in the stability of your business, making it an easier decision for them to work with you.
Increasingly insurers are requiring service providers to carry insurance and while this has been common in Europe for quite some time it’s not something that has been common in Asia. If yards have insurance often this is with a very low limit of cover and they expect an owner to sign a waiver absolving the yard of its responsibility. Insurers are now taking a much tougher stance on this and, in reality, why should the owner of a yacht run the risk of his own insurance record being blemished because of a problem inflicted by someone else?
Colin Dawson recently wrote a piece on preparation of a yacht to enter a yard that appeared in the latest Yachtstyle magazine which goes into this in greater detail and he will be happy to send anyone a copy of this if they wish. While Ship Repairers Liability insurance is a known factor by many the likes of Professional Indemnity insurance is not always so in Asia. This is an insurance that protects the giver of advice in the event that problems arise as a result of that advice. It also includes the defence costs of such accusations. It’s important to note that this is NOT a cover to protect you in the event of a contractual dispute. Other covers that should be sought, depending on the nature of the business, include Directors and Officers Liability and Errors and Omissions. All three are different from a general liability cover which many feel covers all and everything … which it does not. The MYBA requires its members to carry PI cover and it’s something that associations in the Asia Pacific should also be looking to require if we are to improve the professionalism of the industry here with a view to growing the confidence of owners and Captains living in and visiting the region, also root out the increasing numbers of less honourable operators that appear to be entering the arena.
Being a member of an association needs to be seen as a mark of quality that induces trust. Carrying proper insurance is part of that. As a specialist in the yacht insurance field with over 25 years’ experience Colin Dawson and his partnership with Howden Insurance Brokers is well placed to assist businesses in looking at this and other covers they may need and will be happy to discuss this further.
For further information please contact Colin at firstname.lastname@example.org