If you own a superyacht and haven't reviewed your insurance policy in the past twelve months, you're almost certainly underinsured. The market has shifted — quietly, substantially, and not in owners' favour.
Premiums across the superyacht fleet rose by an average of 12-18% in 2025, following consecutive years of increases driven by catastrophic weather events, rising refit costs, and a hardening global marine insurance market. For yachts over 60 metres, increases of 20-25% were not uncommon.
But premium increases tell only part of the story. The more significant changes lie in policy exclusions, geographic restrictions, and the growing scrutiny insurers are applying to vessel maintenance and crew qualifications.
The Premium Landscape
The base rate for hull and machinery coverage on a well-maintained 50-metre motor yacht now typically ranges from 0.8% to 1.2% of insured value — up from 0.5% to 0.8% just three years ago. For sailing yachts, which carry higher loss ratios, rates are correspondingly steeper.
Protection and indemnity (P&I) coverage has seen similar inflation. Annual P&I premiums for a yacht carrying 12 guests and 15 crew now range from $80,000 to $150,000, depending on cruising area and claims history.
Loss of charter income coverage — critical for yachts operating commercially — has become both more expensive and harder to obtain. Several major underwriters have withdrawn from this segment entirely, citing pandemic-era claims that distorted their loss models.
Geographic Restrictions
The most consequential shift for many owners concerns cruising areas. Underwriters have progressively tightened geographic exclusions, with notable impacts on popular superyacht destinations.
The Eastern Mediterranean, historically one of the most popular summer cruising grounds, now carries surcharges for several areas. Turkey requires specific endorsement. Greek waters east of Crete attract additional premium. The Red Sea transit, once routine for yachts repositioning between the Mediterranean and Indian Ocean, is now excluded by most policies without substantial additional premium and security requirements.
Caribbean hurricane season coverage — June through November — has become significantly more restrictive. Several underwriters now require yachts to be south of 12°N latitude during named storm warnings, rather than the traditional 15°N boundary.
Polar expedition cruising, a growing segment of the explorer yacht market, sits in a category of its own. Specialist policies exist but premiums can exceed 3% of hull value, and deductibles are typically 2-5% rather than the standard 1%.
Maintenance and Survey Requirements
Insurers are placing greater emphasis on vessel maintenance standards as a condition of coverage. Annual condition surveys, once a formality, are now scrutinised in detail. Several underwriters have begun requiring independent engineering assessments for yachts over 15 years old.
Classification society status matters more than ever. A yacht maintaining class with Lloyd's, Bureau Veritas, or RINA will typically secure better terms than an unclassed vessel, regardless of actual condition.
Crew qualifications have also come under the insurance spotlight. Underwriters now routinely verify that officers hold valid STCW certificates and that the yacht's safe manning document reflects current operational requirements.
What Owners Should Do
The practical advice from brokers is consistent: review your policy now, not at renewal. Understand your exclusions. Ensure your vessel's maintenance records are comprehensive and current. Confirm your crew certifications are up to date.
Most importantly, work with a specialist yacht insurance broker — not a general marine broker who handles yachts as a sideline. The difference in coverage quality and claims handling is substantial.
As one veteran yacht insurance broker summarised: 'The days of cheap, broad coverage for superyachts are over. The owners who do best are the ones who treat insurance as a year-round relationship, not an annual transaction.'
