The Complex World of Yacht Insurance
Yacht insurance is no simple formality, it's a customised, high-stakes system shaped by law, risk, geography, and wealth protection.
In May 2019, the 39.6-meter sailing superyacht My Song, owned by Italian businessman Pier Luigi Loro Piana, fell overboard from a cargo ship during transport across the Mediterranean.
The yacht, valued at over €30 million, had been en route from the Caribbean to Genoa to participate in the Loro Piana Superyacht Regatta. It was found days later, severely damaged and partially submerged near the Balearic Islands.
Initial reports blamed a failure in the cradle securing the vessel to the deck of the transport ship. But the real storm came afterwards, as legal teams, insurers, and shipping agents began disentangling who bore responsibility.
At the heart of it was a bespoke yacht insurance policy, painstakingly negotiated, yet still vulnerable to the ambiguities of international shipping law.
This case, one of the most publicised yacht insurance incidents in recent years, underscored just how complicated and high-stakes the world of yacht insurance has become.
