Legal
Insurance and liability in a delivery
This is the point that causes the most trouble and gets the least attention. A delivery means somebody who is not the owner will be in command of the boat, and the insurer needs to be told before departure. Not after.
Published on
Photo by Olaf Tausch · CC BY 3.0
The owner’s policy
The boat still belongs to the owner and their hull and machinery policy is what covers damage to the vessel during the transfer. It is normal for the delivery company to ask for a copy of the policy in force before starting, and for the owner to warrant that the boat is seaworthy.
Many policies carry specific passage conditions: covered navigation areas, minimum crew numbers, or excluded times of year. Worth reading beforehand, not when there is a claim to make.
Telling the insurer
This is the critical point. Failing to inform the insurer that the passage will be made by third-party crew can leave the policy without effect exactly when it is needed. It takes confirming with your broker that the third-party crew arrangement is explicitly covered, and keeping that confirmation in writing.
It is a ten-minute call that can prevent an uninsured total loss. There is no sensible reason to skip it.
The company’s cover
For its part, whoever carries out the transfer should hold professional indemnity insurance. Delivery contracts typically provide that the company is not liable for loss or damage arising from perils of the sea except in cases of gross negligence or wilful misconduct, and that the owner maintains cover for those risks.
That is a reasonable split: the crew answers for how it works, not for the fact that there was a gale.
What the contract must say
A serious delivery contract covers at least: identification of the boat and the parties, ports of origin and destination, a date range, crew composition, allocation of costs (fuel, berths, fees, flights), the policies each party provides, and what happens if the passage has to be interrupted.
If someone proposes a transfer with no contract and no sight of the policy, that is all the information you need about that company.
Frequently asked questions
Does my insurance cover the delivery?
It depends on the policy. You must tell the insurer that third-party crew will be on board and get written confirmation that the planned passage is covered.
Who is liable if the boat is damaged?
Perils of the sea are covered by the owner’s policy. The delivery company answers for gross negligence or wilful misconduct through its professional indemnity cover.
Is a contract necessary for a delivery?
Always. It should set out boat, parties, dates, crew, cost allocation, insurance and what happens if the passage is interrupted.
