Yacht crew insurance: Expert tips

• Mark Bononi
• Director, Yacht Division
• +1 954 828 1819

How do I know which plan is right for me and/or my group?

Whether you are looking for group or individual coverage, all crew insurance plans are not created equal. Before you select a plan, here are a few questions to consider:

1. Is coverage for a specific medical condition required?
2. Is robust coverage in the US essential?
3. Are maternity and dependent options necessary?
4. Is access to mental health benefits and resources important?

Not all plans provide the same level of benefits and coverage, which means it’s important to find the right plan for your particular situation. Not sure which plan is for you or your crew? Speak with a crew insurance specialist to help you choose the right plan to fit your current and future needs.

We’re based in the Med, but we spend a few months in the Caribbean. Do we need US coverage?

The short answer is yes! While you may not be visiting the US, if there is an emergency on board that requires a medical evacuation, there is a very high likelihood that the crew member will be evacuated to the US for treatment. Without US coverage, the medical evacuation would not be covered by the policy.

Why do owners need to have a crew benefits plan?

Insurance is more than a necessity; it’s a reward for the industry’s best crew. Benefits are often seen as an incentive, and if you are in demand for the industries best, then you should be offering them the best. The top 5 reasons why owners should offer insurance to their crew:

1. Defray risk
2. Potential P&I cost savings
3. Reduce or eliminate P&I claims
4. Improved owner and guest experience
5. Attract and retain the industry’s best crew

What factors determine the cost of a group plan?

Some of the factors that play a role in determining the cost of a group plan are the itinerary, age of the crew, and the type of coverage selected. Will the yacht be spending time in the US or the Caribbean? If so, the premium will be higher due to the high medical costs in the US, whereas a yacht based in the Med would see a significantly lower premium. Depending on which insurance plan is selected, some insurance carriers will take the average age of the group, while others will take standard rates based on the number of crew to determine the cost. The level of coverage chosen also plays a role in determining the cost of the plan. A basic plan will typically have restrictions and limited coverage while a benefits-rich plan will be more expensive.

About this expert

MHG Insurance introduced crew benefits to the marine industry in 1991, and has been providing insurance advice and solutions ever since. The company's expertise sits within this specialised area which is regularly utilised as a resource by clients, helping them to interpret and stay up-to-date on regulations and legislation affecting the marine industry, especially in crew employment matters. While the company is very proud of this, it believes that what sets it apart is the customer service provided to each client from enquiry stage, through the claims process, and beyond. Its close relationship with the world’s leading insurance markets, combined with an outstanding service team, has positioned MHG Insurance as the marine industry’s authority on crew insurance.