Marine insurance is one of the lines every Bermuda boat owner asks about and one of the lines first-time buyers most often underestimate. Here's exactly what's in a standard Bermuda boat policy, what it costs, and the three things that actually move the premium.
The three lines you need
Every solid Bermuda marine policy has three components.
- ●Hull cover, which insures the boat itself against damage from collision, grounding, fire, theft and weather.
- ●Third-party liability, which covers you if your boat damages someone else's boat, dock, person or property. Most Bermuda marinas and mooring assignments require minimum US$1M to US$2M of third-party cover.
- ●Personal effects / equipment, which covers electronics, tackle, water toys and personal property kept on board.
Some owners also add tender / dinghy cover, hurricane storage cover and emergency tow cover. Most insurers can bundle these in.
What it costs by boat size
Bermuda marine insurance scales roughly with hull value, length and use. For a typical recreational owner using the boat May through October:
- ●18 to 22ft skiff or center console: US$1,200 to US$2,000 per year
- ●22 to 26ft center console or dual console: US$1,800 to US$3,000 per year
- ●26 to 32ft day cruiser or sport fisher: US$3,000 to US$5,500 per year
- ●32 to 40ft cabin cruiser or sportfish: US$5,500 to US$10,000 per year
- ●40ft+ motor yacht: scales individually with hull value, typically 1.0 to 2.0% of hull value annually
What moves the premium
Three factors drive almost all the premium variance between two otherwise-similar boats.
1. The survey
Insurers want a current marine survey to underwrite hull cover. Without it, premiums spike, deductibles go up, or the policy gets declined outright. A clean, recent (under 18 months) survey is the single biggest premium-mover. We arrange the survey for every boat we sell or import. The same surveyor's report goes to the insurer.
2. Hurricane plan
Most Bermuda marine policies require you to file a written hurricane plan before June 1 each year. Off-season haul-out earns a 10 to 15% premium discount with most carriers. Permanent hurricane-rated mooring earns a smaller discount. No filed plan typically means a coverage exclusion during named-storm activity.
3. Captain's experience
First-time Bermuda boat owners with no logged hours pay a higher premium for the first season. After a clean year of operation with no claims, premiums drop. Boats run primarily by a licensed captain (not the owner) get the lowest rates.
Bermuda-specific clauses to read carefully
Three clauses commonly show up in Bermuda marine policies that owners need to actually read.
- ●Cruising limit, which defines how far offshore the policy covers. Most Bermuda policies cover up to 50 or 100 nautical miles from Bermuda. Heading to Anguilla or the East Coast? You need a navigation extension.
- ●Reef strike exclusion, where some policies exclude grounding damage on Bermuda's outer reef line. Read it carefully and negotiate it out if possible.
- ●Charter use exclusion, where private policies do not cover charter or rental use. If you ever plan to charter the boat for income, you need a commercial policy add-on.
Insurance brokers we work with
Several Bermuda brokers write marine policies and a few US-based brokers will cover Bermuda hulls. We have working relationships with the ones who handle the survey process smoothly, write competitive premiums and pay claims fast. We make the referral as part of every boat sale and import. You don't have to figure out who's good and who's not.
WhatsApp Sean at +1 (441) 518-7077 if you want a marine insurance broker referral for a boat you already own or one we're about to import for you.
