The top insurance claims, and how to avoid them

The aim of insurance is primarily to give you financial protection so that if something happens to you or your boat, you are not solely responsible for covering the cost of any repairs or replacements that could be expensive.

But you also get protection in the case where you cause damage to someone else’s property or well-being. 

Lastly, insurance gives peace of mind in the knowledge that if something unforeseen should happen, it will have little to no influence on how you enjoy the water before and after.

Boatsales asked marine insurance group Pantaenius for its most common causes of insurance claims, and tips on how to avoid them.

Collisions, whether with another vessel, a floating object, or even marine wildlife are commonplace on the water. 

The damage resulting from these incidents can vary from minor scratches to severe structural damage. 

It's essential to be aware that liability for damage to others may arise from such incidents.

The perils of the sea, such as adverse weather conditions, powerful waves, and storms are challenges that mariners frequently encounter. 

Properly securing your vessel by removing loose items, taking down covers and awnings, and adding extra lines and fenders can significantly minimise potential damages. 

Keeping a close eye on weather warnings allows ample time to safeguard your assets.

Lightning strikes, while unpredictable, can be a formidable adversary. Anecdotally, in the US roughly one in every 1000 boats are struck by lightning each year, with sailboats outnumbering the number of motor yachts hit.

Lightning claims often take time to resolve due to meticulous testing requirements. 

The nature of damage can be extensive, affecting the electrical systems on the boat. It can also damage the boat’s fittings, depending on where the lightning strike passed from the boat to the water. A missing VHF antenna, usually the highest point on a boat, is a telltale sign that your boat has been hit, as are blown fuses.

Sometimes your boat doesn’t have to be hit by lightning, with the magnetic field generated by a strike affecting the electrical systems of boats around it. One clue is to look for a magnetic compass that is out.

Having paper charts on board is important, considering the increasing frequency of lightning strikes both at sea and on land.

Grounding incidents, where a vessel hits the bottom or temporarily strands on a bank, are avoidable with careful navigation. 

Understanding the waters you navigate, using suitable anchors, and regular mooring servicing contribute to minimising the risk of groundings. 

However, in more severe cases where vessels become stuck on reefs or are beached, substantial salvage operations may be required, emphasising the importance of insurance coverage.

Good navigation is particularly important in places such as the Great Barrier Reef where even popular anchorages have uncharted coral bommies waiting to catch a rudder or keel.

While vessel thefts are relatively uncommon, thefts of personal belongings or equipment from boats occur frequently. 

Taking precautions by not leaving valuables within easy reach of thieves is crucial. 

Vandalism incidents, although unpredictable, are covered by insurance, providing a safety net for boat owners.

Modern electronic systems allow for owners to remotely monitor boats parked up in the marina. Sensors that detect motion or even someone unclipping a cover can alert owners that something is amiss.

Submersion incidents, resulting in partial or total sinking of a vessel, can be disastrous. 

Most often, these incidents are attributed to a lack of maintenance. One instance we’ve seen was a bilge pump failing after an extended period of cloud cover that compromised a solar panel’s ability to keep the battery alive.

Insurance coverage may vary depending on the cause, making it imperative to carry necessary safety equipment and act promptly to minimise damages in the event of submersion.

Engine failure is a potential nightmare for any sailor. It may or may not be covered by insurance, depending on the cause. 

Incidents that can lead to engine failure, such as a collision or grounding, are typically covered. 

However, wear and tear, lack of maintenance, or faulty workmanship may not be considered claimable. 

Regular servicing by a reliable mechanic is the best insurance for your engine's longevity.

Mast breakage, whether due to a collision or aging standing rigging, poses a significant risk. 

Regular replacement of standing rigging every 10 years is a recommended practice to prevent such incidents. 

If a mast breaks at sea, securing as many components as possible and seeking assistance from experts is crucial for safety and minimising the risk of further damage.

Fires onboard vessels are potentially destructive and can lead to total losses. 

Fire damage claims may take longer to resolve, involving fire investigators to determine the cause. 

Prompt action in case of a fire is essential, and having insurance coverage is critical. 

Liability for damages may apply if the fire is a result of another party's negligence.