Watercraft owners and skippers should manage risks this summer

24 Jan 2018

With summer in full swing, many South Africans are enjoying increased time on the water. With that in mind, boat owners need to ensure that their risks are properly managed. It is vital for watercraft owners and skippers to have the best possible insurance cover in place.

Watercraft such as yachts and jet skis are covered under a separate boat insurance policy. Watercraft insurance is a specialised risk and it is therefore essential that owners and skippers make sure that even the slightest risks are insured against.

Lynda Brown

Taking a craft out onto the water can be quite perilous, especially if it involves going out to sea. A skipper has to be vigilant at all times. Loss or damage could occur due to stranding, sinking, collision, fire, theft, vandalism, storms, capsizing, and in extreme cases, explosions.

There are also liability issues to consider since negligent navigation could lead to accidental damage to other vessels, or to structures such as piers and wharves, loss of life and bodily injury. Liability claims arising from these types of incidents have the potential to even bankrupt the owner of the craft.

Adequate insurance cover has to take all of these possibilities into account. The owner needs to know exactly which types of cover are available based on insured perils. It is also necessary to understand whether the craft is insured if the owner rents it to a third party or uses it for charter services. Additionally, the owner is to ensure the policy on the craft includes environmental liability and wreck removal in the event of sinking.

Watercraft owners and skippers should manage risks this summer

Boat owners must also be aware of possible exclusions that could affect an owner’s claim. All policies have exclusions attached. It is common, for example, to have territorial limits that require a craft to stay within the Republic of South Africa or sub-Saharan African countries on inland waters, or within 20 kilometres of the coastline.

Lastly, if a boat is used for sporting events, the responsibility rests with the owner to ascertain additional risks that they need to know off as its part of the insurance requirements. Sporting events tend to change the level of risk for a boat owner significantly, when one considers the number of crafts, intensity and competitiveness involved.

To guarantee that your asset is accurately covered revert to a marine broker for assistance.