As a consequence of the climate change are more upcoming natural hazards all over the world. We all know, that the US coasts are often affected by hurricanes. But also more and more hard storms, and also types of hurricanes, will hit Europe in the next years. What could be a way to protect people of such damages? Insurance companies have to think about products, that includes a higher range of coverage than the average insurance policy does right now.
Based on the common insurance conditions storm is defined as a weather-related air movement with a speed of 62 km/h. On scale to Beaufort it is a wind force of 8. However a hurricane is a weather-related air movement with 118 km/h, which means it has a wind force 12 to Beaufort. Of course these are just basic facts about the differences, but also good to know for every boat owner.
By now Europe is not that area with a lot of hurricanes, but in the last years the number of heavy storms, and as well some hurricanes - e.g. Ireland and Scotland 2017 – increased. Because of lightly raising temperatures of the seas more hurricanes will reach Europe during the next years. Not only the European Islands will hit, but also the main continent has to react on the climate change. Probably countries like The Netherlands, France, Spain and Germany need a new strategy against those types of storms.
For a good and long term preparation it is possible to take out a boat insurance, which covers storm and of course hurricane damages. Please, consult your local insurance agent or search on different websites for a good fitting boat insurance. If a hurricane, or a heavy storm, comes up you can also follow this little tips:
Mostly you can not only take out a storm coverage. You will pay for a package of various insured hazards. In addition earth quake, thunder, lightning and also flood are included drives in your policy.
It depends on your individual insurance cover. The most boat insurances, except the third party liability insurance, giving cover for a specific area. European insurance companies restrict this area to Europe. So you have to check, that your boat is insured wherever you are and if it is possible to increase the insured area.
Do you remember the years from 2009 to 2011? All over the world the newspaper were full of articles about new pirate attacks against ships and private boats. Sadly this is not as funny as the movies of Pirates at the Caribbean let leave the audience. There will be no jerky Jack Sparrow and charming Will Turner. During the year 2008 were 293 ships affected by attacks with costs of 25 million US Dollar. A peak of attacks was in 2010 with about 445 raider. In the last 10 years were less attacks, but more than 100 ships and boats getting trouble with pirates, every year. What if a pirate insurance can solve those problems and occur a claim, e.g. while paying ransom money?
Piracy is a form of a violence crime aboard a ship or boat on high seas. Attacks by pirates are as old as seafaring itself, which means that since the 5th century before christ merchants, traders etc. were victims of pirates. Piracy is an emergency, so you can always use all signals. Ships nearby have to help or have to take a look for police, army etc. Also a compulsion of giving money to sea bandits is a way of piracy. This means that not only big ships could be involved in attacks, but also little private yachts or boats could be affected by them.
In 1992 the Piracy Reporting Centre was founded in Kuala Lumpur - Malaysia. Since that year the centre collects news about piracy all over the world and is giving daily reports. Most attacks were near the coasts of Somalia, Yemen, Suez Canal and Bangladesh. But also in South America were attacks against sailing boats of private persons.
First of all this kind of insurance have to cover such attacks and not only for commercial companies, but also for private clients. More and more people make the dream about a circumnavigation come true. They take out coverage for a third party liability insurance and also the boat insurance itself is chosen. The pirate insurance have to be an addition to the average insurance package. This insurance includes the payment of ransom money, the loss of stuff and of course the rehabilitation after an attack for the crew members. Many insurance companies exclude the part of gross negligence, which also means a planned trip through rough waters with a high rate of piracy.
Nevertheless you can not choose the way you have to go. So you have to get into a water, where boats and ships are attacked by pirates very often. A good and comprehensive pirate insurance should include this kind of negligence as well.
But the insurance product, which includes piracy attacks, should be more flexible than maybe other insurances. It has to be easier taking out an insurance for shipping companies as it is. In the last years insurer were not able to pay the ransom money, because of comprehensive and difficult terms of contract between insurer and shipping company. There are no unified guidelines for cases, when pirates kidnapping a whole ship. This should be much easier than now!
Many shipping companies use one ship for transport. The payment of their clients are high enough for upkeeping ship, settle some bills and paying the crew. There is no space for extra costs, like a ransom sum. Especially more than once in a year! But there is a buffer for insurances premiums. An pirate insurance is an eyecatcher for those, who are into pirate hot spots, very often. The premium will be calculated according to the frequency of using this hot spot areas in addition to the transported value. An easy and simple way to insure more shipping companies and private people with big dreams.
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Type of activity: Insurance agent with permission according to § 34d Abs. 1 GewO, §§59-68 VVG, VersVermV