Selling your boat? No sale, no fee — 5% commission across six Mediterranean markets. Sell your boat
Sell your boat

Shipyard / Refit Insurance

— Premier Yacht Brokerage

Shipyard / Refit Insurance

Get in touch →

Before you sign any contracts, start hot work, or lift the yacht, make sure your Shipyard / Refit Insurance covers the full scope of the project: declared value and agreed hull sum, hull and machinery, transit and storage, removal of wreck, and third‑party liability limits (including pollution).

Identify the “insurance model” for the refit 

A) Yacht policy remains primary (most common)

Your hull policy continues, often with:

  • lay-up / laid-up returns (sometimes),
  • warranties/conditions around hot work, watchmen, decommissioning,
  • deductible changes or refit endorsements.

You still need the yard/contractors to carry liability and to accept contractual responsibility.

B) Yard contract works / builder’s risk style policy (project policy)

Sometimes used for major rebuilds or high-value scope. It can:

  • cover “works” and sometimes the existing vessel,
  • simplify claims handling if properly written,
  • still require strong contract language and clear valuations.

C) Mixed model (common in practice)

Hull remains on yacht policy; “new works” covered under a project policy; liabilities sit with yard/contractors. This is where gaps frequently appear.

Checklist action: before signing, ask your broker to confirm in writing which model applies and which policy responds to:

  • fire during hot work,
  • damage during lifting/launch,
  • contractor negligence,
  • defective workmanship rectification vs resulting damage,
  • theft from the vessel while in yard custody.

Pre-refit insurance call: the 20-minute agenda that prevents disputes

Before the yacht arrives (or before scope expands), schedule a three-way call:

  • Owner/manager/captain
  • Broker
  • Insurer/underwriter (or claims/risk engineer if available)

Cover these points:

  1. Dates + location(s) + expected duration
  2. Scope summary (hot work? structural? tank entry? major electrical?)
  3. Who has care/custody/control (yard vs captain)
  4. Will the yacht be “in commission” or “laid up”?
  5. Any navigation/operation changes (sea trials, towing, relocation between yards)
  6. Security and fire plan (yard systems + onboard systems availability)

Yacht brokers in {keyword}, {country}

Contract checklist: clauses that affect whether insurance actually pays

A) Responsibility and standard of care

Confirm the contract states the yard is responsible for:

  • its negligence and that of subcontractors under its control,
  • compliance with safety standards and permits,
  • protection of the yacht while in its custody.

B) Indemnities & hold harmless

Beware “owner holds yard harmless for everything” language. Even if your insurer pays, it may:

  • reduce recoveries,
  • create coverage issues if you’ve waived rights without consent.

C) Waiver of subrogation

If the yard demands a waiver of subrogation, confirm:

  • your policy allows it (often requires insurer consent),
  • it is limited in scope (not blanket for gross negligence).

D) Additional insured / cross-liability

If the yard wants to be an additional insured on your policy, get broker advice—this can complicate claims and conflicts. Often better:

  • yard provides its own liability,
  • owner named as additional insured on the yard/contractor policies where appropriate.

E) Limitation of liability caps

Yard contracts may cap liability to a small amount (e.g., a few days’ yard fees). This leaves you relying solely on your hull policy and deductible.

Checklist action: have your broker (or maritime counsel) review insurance clauses specifically—don’t treat them as boilerplate.

Our Partners

We recommend Pantaenius Yacht Insurance for its comprehensive marine coverage, specialist expertise, and dedicated support for yacht owners.

34, quai Jean-Charles Rey | 98000 Monaco

Yard due diligence: what insurance to request from the shipyard

Minimum yard insurance items to evidence

Ask:

Checklist action: require the yard to provide named subcontractor controls (either yard accepts responsibility for subs, or subs must provide their own insurance + name you/yard as additional insured where appropriate).

Yacht brokers in {keyword}, {country}
Yacht Insurance Claims

Contractor insurance checklist

For each major contractor (or via the yard’s subcontractor system), request:

  • Public liability (with adequate limits)
  • Professional indemnity/errors & omissions (for design/engineering)
  • Workers’ compensation/employer’s liability
  • Pollution liability (if handling fuels/chemicals)
  • Evidence of training/certification for hot work

Contact Us

Contact us today to learn more about our comprehensive yacht insurance solutions tailored to your needs. Whether you own a luxury yacht, sailing boat, or personal watercraft, our team is here to help protect your investment with reliable coverage options, including damage protection, liability coverage, and emergency assistance.

General Contact Form

Common questions about Shipyard / Refit Insurance

What is Shipyard / Refit Insurance and why do I need it?

Shipyard / Refit Insurance covers physical damage to a vessel and third‑party liabilities while the yacht is in a shipyard or undergoing refit, repair, maintenance, or storage ashore. It protects against workshop accidents, fire from hot work, lifting and transport incidents, theft of parts, and liabilities to yard staff or visitors — essential because standard hull policies often exclude work‑in‑yard risks or require specific endorsements.

Does a standard yacht hull policy cover refit activities?

Not always. Many standard hull policies exclude or limit cover for certain yard activities, hot work, or work by subcontractors unless specific extensions or a dedicated shipyard/refit endorsement are added. Always check policy wording for agreed value, permitted works, and required warranties (hot‑work permits, fire watches, approved contractors).

Who should be named on the policy?

At minimum, the owner and the shipyard should be named or included as interested parties. If subcontractors will perform significant work, the policy should explicitly cover them or require them to carry their own insurance with the owner and yard as additional insureds. Also confirm whether the insurer requires the yard to be an addressee or hold a waiver of subrogation.

What common exclusions and warranties should I watch for?

Typical exclusions include wear and tear, latent defects, corrosion, mould/rot, electrical or electronic failure without physical damage, and prior damage. Common warranties/conditions include hot‑work permits, designated fire watch, approved welding practices, certified lifting equipment and operators, timely notification of material changes, and attendance by an agreed surveyor for major operations.

How should lifting, transit and hot‑work risks be managed for insurance compliance?

Ensure lifting equipment and operators are certified, provide lifted‑item declarations to the insurer, and schedule lifts with the insurer or surveyor if required. For hot work, obtain hot‑work permits, assign a dedicated fire watch, use temporary suppression where required, and document procedures. Declare any transit, haul-out and storage periods, and obtain transit cover or separate marine transit insurance where the policy excludes such movements

The Ultimate List of Yacht Insurance