I had a first-hand experience with yacht insurance that paralleled Ken Williams comment (below).
I purchased a new, British-built cruising catamaran in England. I flagged it as a U.S. vessel, and insured it through Lloyds. I then engaged in a 9-month/9,000 mile singlehanded voyage (western Europe, trans-Atlantic crossing, Caribbean, Bahamas, thence New England), eventually ending up in NYC.
Three months later, when I looked to acquire another year of insurance coverage by renewing my Lloyd's policy, the rate was almost exactly 100% higher than when I'd purchased the same policy in the UK. (And at that time I was seeking simply regional/coastal coverage, NOT the western-Europe/transoceanic/Caribbean/Bahamas/US-Atlantic-coast policy I'd previously had.)
The reason given?
"You Yanks are so much more litiguous. Given that you say the boat will now be based in the U.S., the insurance rate is double." And so I paid the increased rate, for LESS extensive coverage!
Regards,
Rod Gibbons
founder: Cruising Cats USA
Seattle, Portland, SF Bay, Hawaii
-----Original Message-----
From: Ken Williams kenw@seanet.com
Sent: Jan 16, 2007 11:38 AM
To: 'Passagemaking Under Power List' passagemaking-under-power@lists.samurai.com
Subject: Re: [PUP] Offshore insurance
Scott:
If you speak to more insurance companies, and if it isn't any extra work,
can you ask them about whether your ability to get insurance varies based on
whether or not your vessel is US flagged?
I have been told, but have not verified this, that insurance is much
cheaper, and simpler to find, if your vessel is not US flagged. The reason I
was given is that the US has the most expensive litigation should anything
go wrong (punitive damages, etc)
We will be taking delivery of our new boat in a few months, and I'm on the
fence as to whether or not to US flag it. The majority of our cruising will
be non-US, so it might make sense for us.
As I start my quest for insurance, I'll let you know what I find.
-Ken Williams
Nordhavn68.com
I had a first-hand experience with yacht insurance that paralleled Ken Williams comment (below).
I purchased a new, British-built cruising catamaran in England. I flagged it as a U.S. vessel, and insured it through Lloyds. I then engaged in a 9-month/9,000 mile singlehanded voyage (western Europe, trans-Atlantic crossing, Caribbean, Bahamas, thence New England), eventually ending up in NYC.
Three months later, when I looked to acquire another year of insurance coverage by renewing my Lloyd's policy, the rate was almost exactly 100% higher than when I'd purchased the same policy in the UK. (And at that time I was seeking simply regional/coastal coverage, NOT the western-Europe/transoceanic/Caribbean/Bahamas/US-Atlantic-coast policy I'd previously had.)
The reason given?
"You Yanks are so much more litiguous. Given that you say the boat will now be based in the U.S., the insurance rate is double." And so I paid the increased rate, for LESS extensive coverage!
Regards,
Rod Gibbons
founder: Cruising Cats USA
Seattle, Portland, SF Bay, Hawaii
-----Original Message-----
>From: Ken Williams <kenw@seanet.com>
>Sent: Jan 16, 2007 11:38 AM
>To: 'Passagemaking Under Power List' <passagemaking-under-power@lists.samurai.com>
>Subject: Re: [PUP] Offshore insurance
>
>Scott:
>
>If you speak to more insurance companies, and if it isn't any extra work,
>can you ask them about whether your ability to get insurance varies based on
>whether or not your vessel is US flagged?
>
>I have been told, but have not verified this, that insurance is much
>cheaper, and simpler to find, if your vessel is not US flagged. The reason I
>was given is that the US has the most expensive litigation should anything
>go wrong (punitive damages, etc)
>
>We will be taking delivery of our new boat in a few months, and I'm on the
>fence as to whether or not to US flag it. The majority of our cruising will
>be non-US, so it might make sense for us.
>
>As I start my quest for insurance, I'll let you know what I find.
>
>-Ken Williams
>Nordhavn68.com
>mailto:passagemaking-under-power@lists.samurai.com
>
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