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Most yacht policies written today include Protection and Indemnity insurance. This insurance is optional, but is only written in conjunction with Hull coverage. However, by purchasing Protection and indemnity insurance the insured also obtains coverage for claims arising out of the Longshoreman's and Harbour Workers' Compensation Act of the United States of America.

The third party risk is probably more prevalent for smaller yachts which are used, in the main, by amateur seamen than it is with professionally handled yachts. Accordingly, adequate cover should be purchased for liability, in addition to cover for loss of or damage to the yacht itself.

Coverage will include reimbursement for insured persons who become legally liable for damages arising from their ownership or use of the yacht for:

1. bodily injury or death which includes loss of life or bodily injury or illness to third parties;
2. loss or damage to any property, whether it is on board your yacht or not. This includes loss or damage to any fixed or movable object such as a float or a dock, and any property that is on that object;
3. costs that result from the attempt or actual raising, removal or destruction of the wreck of your yacht if required by law;
4. the rescue of the insured, the insured's passengers and members of the crew.

Generally liability during waterskiing will be at a lower limit and may be subject to a deductible.

The policy will not cover the following claims:

5. any liability you or any insured person have assumed under any contract or agreement;
5. any person for bodily injury or property damage intentionally caused by that person;
5. any liability for bodily injury to any insured person;
5. any liability for damage to property owned or rented by, or in the care, custody and control of any insured person;
5. any bodily injury to or the death of workmen or any other persons employed in any capacity whatsoever by you in, or in connection with the yacht or any work repair to it, if benefits are required or available under a workers compensation law;
5. any fine or other penalty which any government body requires you to pay;
5. any liability arising out of the transportation of the yacht on land.

Federal Longshoremen's and Harbour Workers' Compensation Insurance

The Longshoremen's and Harbour Workers' Compensation coverage is included in conjunction with the Protection and Indemnity insurance coverage of the Yacht policy, at no additional premium. Such coverage indemnifies the insured for his liability arising out of the provisions of the Longshoremen's and Harbour Workers' Act of 1927 and it's amendments. Persons coming under this Act are persons employed by the insured - other than members of the crew - such as carpenters or painters who do casual work on or near navigable waters.

The Mariner’s Smile

Some sample questions and answers from last year's SAT test given in Springdale, Arkansas to 16 year olds.

Q: Name the four seasons.
A: Salt, pepper, mustard and vinegar.

Q: How are the main parts of the body categorized?
A: The body is consisted into three parts - the brainium, the borax and the abdominal cavity. The brainium contains the brian, the borax contains the head and lungs, and the abdominal cavity contains the five bowels, A, E, I, O and U.

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Peter J. Taylor, President. Underwriters and Intermediaries in Ocean and Air Cargo, Inland Transit, Transit Liabilities, Marine Liabilities, Commercial Hull, Yachts and Hovercraft.

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