While recreational boats are commonly written as part of a homeowners package, the luxury yacht and mega-yacht insurance market involves a host of specialized coverages. Crew repatriation, haul-out provisions to cover the expense of removing a vessel from the path of a storm, salvage and wreck removal, and crew coverage for compliance with the Jones Act are some of the key coverages sought by owners of larger vessels. Brokers should expect to also negotiate underwriting agreements to include agreed value, reduction in or disappearing deductibles, and expanded navigational limits.

“With boats on inland waters, navigation isn't an issue. With larger yachts, navigation territory is an important part of insurance. You want to be sure that where you're going to use your boat is reflected on the policy, so you don't end up buying insurance that restricts you to northern Atlantic navigation and you wind up going south,” says Ed Charlebois, vice president of personal insurance at Travelers.

Pollution coverage is also a big concern, says Kim Loos, managing assistant vice president in American Modern's St. Louis Marine Service Center. Especially on larger boats, she explains, most marinas are now requiring evidence or proof of pollution coverage.”