Does boat insurance cover offshore cruising?

Boat insurance can cover offshore cruising.

The important question is how far the policy allows you to go and what other conditions apply.

"Offshore" can mean very different things.

It might be:

• fishing beyond the heads
• travelling along the Australian coast
• visiting an offshore island
• crossing to New Zealand
• sailing to Fiji or the South Pacific
• a longer blue-water voyage

Those trips should not be treated as if they are all the same insurance risk.

What does offshore mean for boat insurance?

There is no single definition used by every insurer.

Policies can use geographic or navigational limits that refer to things such as:

• distance from the Australian coastline
• distance from mainland Australia or Tasmania
• Australian waters
• named cruising areas
• limits shown on your policy schedule

That means the ordinary meaning of "offshore" is not enough.

Check the wording used by your own policy.

How far offshore does boat insurance cover?

It varies.

Current Australian policy examples show why.

These are examples, not an Australian standard.

A policy offering a wider distance is also not automatically a better policy.

You still need to compare the rest of the cover.

Does 200 or 250 nautical miles mean the destination is covered?

Not necessarily.

A rough distance on a map is only one part of the answer.

A policy may also have conditions around:

• leaving Australian waters
• clearing customs or immigration
• named cruising areas
• single-handed sailing
• racing
• charter use
• weather or seasonal restrictions
• the boat's suitability for the voyage

If you are planning a specific trip, tell the insurer the actual route.

What happens when you clear customs to leave Australia?

This is particularly important for international cruising.

Some Australian pleasure craft policies can stop providing normal cover once you clear customs or immigration to leave Australian waters unless an extension has been agreed.

Nautilus and Club Marine provide current examples of policy wording where international departure can change the cover available.

So a trip may still fall within a rough distance from Australia while being outside the normal insured cruising area.

If you are heading to New Zealand, Fiji or another overseas destination, do not rely on the distance alone.

Get the trip confirmed.

When might you need specialist blue-water cover?

A specialist policy or written extension may be needed for longer or more complicated voyages.

That can include:

• international cruising
• extended blue-water passages
• longer single-handed sailing
• ocean racing
• permanent liveaboard use
• charter or commercial use

Specialist marine insurers may ask for more information before agreeing to cover the voyage.

What can insurers ask about the boat?

For longer offshore trips, an insurer may want more detail about whether the boat is suitable for the intended voyage.

That could include:

• boat type and construction
• age and condition
• maintenance
• rigging
• engines
• navigation equipment
• safety equipment
• surveys
• previous refits
• intended route

A boat that is perfectly suitable for local coastal use may need more individual underwriting for a long ocean passage.

What can they ask about the skipper and crew?

The people operating the boat can matter too.

An insurer may ask about:

• boating or sailing experience
• offshore experience
• crew numbers
• qualifications
• whether the trip is single-handed
• previous long-distance passages

Pantaenius provides one current example of why this can matter. Its All Risk wording includes particular restrictions around some single-handed passages unless the policy schedule says otherwise.

Do not assume a blue-water policy automatically covers every crew setup.

What about single-handed sailing?

Tell the insurer if you will be sailing alone.

Some policies can apply extra conditions to single-handed offshore passages.

These can relate to:

• distance from land
• night sailing
• route
• experience
• the policy schedule

Get the position confirmed before departure.

What about offshore racing?

Racing cover is a separate issue.

A policy that covers normal offshore cruising may not automatically cover a yacht during a race.

Insurers can have different limits around race type and distance.

Tell the insurer if any part of the trip involves racing.

What about liveaboard or charter use?

These uses can change the policy entirely.

Some standard recreational policies exclude permanent liveaboard use.

Charter, hire or other business use can also require commercial marine cover.

Do not rely on geographic cover alone if the way the boat is used falls outside ordinary recreation.

Does offshore boat insurance cover towing or rescue?

It can include certain emergency, towing or salvage costs, but these are not all the same thing.

Check separately for:

• towing
• emergency assistance
• salvage
• wreck removal
• rescue expenses
• transport back to a repairer

A policy covering damage offshore does not automatically mean every recovery cost is covered.

This is especially important where the boat may be a long way from normal repair or marina services.

What if weather forces you to change route?

Do not assume an unexpected route change will always remain within cover.

If weather or another emergency changes the voyage, the answer can depend on the policy wording and the circumstances.

For longer passages, it is worth asking the insurer beforehand how route changes and emergency deviations are treated.

Offshore insurance checklist before you leave

Before a longer trip, check:

• the exact geographic limit
• whether the destination is within the insured area
• what happens after customs clearance
• whether an extension needs to be agreed in writing
• whether single-handed sailing is covered
• whether racing is covered
• whether liveaboard use is allowed
• whether charter or business use changes the policy
• whether the boat needs a survey
• emergency, towing and salvage limits
• any seasonal or route conditions
• whether the schedule has special endorsements

Do this before leaving rather than trying to work it out after a claim.