MyYachtsInsurance - Yacht Insurance Community

Reviewed by Alex Short, Independent Yacht Insurance Risk Analyst

TL;DR

Items stored in a locked cabin trunk are generally covered under a yacht policy if the loss results from a covered peril and is not excluded by the policy. Coverage is void if the loss arises from the insured’s failure to maintain security, or if it falls under the "care, custody, and control" exclusion. Unauthorized boarding events may trigger coverage if they constitute a general average event under [YORK-ANTWERP-2016] or a salvage operation under [LLOYDS-OPEN-FORM].

Trigger Conditions

Trigger	Policy Impact	Consequence
Unauthorized boarding without general average declaration	General Average Exclusion [YORK-ANTWERP-2016]	Coverage void if not declared under York-Antwerp Rules
Failure to lock cabin trunk during boarding incident	Security Maintenance Clause [IYIC-1985]	Coverage void for loss due to failure to maintain security
Items accessed during salvage operation under LOF	Salvage Access Exclusion [LLOYDS-OPEN-FORM]	Loss excluded if items are accessed during salvage
Boarding incident occurs during lay-up without notice	Notice of Lay-Up Clause [IYIC-CLAUSE-10]	Coverage reduced or excluded if lay-up not notified
Boarding incident caused by breach of navigation limits	Navigation Limits Clause [IYIC-1985]	Loss excluded if incident results from navigation breach

Underwriter's Checklist

Survey report: Underwriters verify the current condition and valuation of the vessel to assess risk exposure, particularly for secured items, ensuring alignment with the policy’s insurable interest [IHC-2003] [IYIC-1985] [MIA-1906].
Class certificate: Underwriters confirm the vessel is in good standing with a recognized classification society, ensuring compliance with safety and structural standards relevant to boarding incidents [IHC-2003] [IYIC-1985] [MIA-GUIDELINES].
Maintenance log: Underwriters review records of regular maintenance to ensure the vessel is seaworthy and that systems securing items are functioning properly, reducing the risk of loss during boarding [IHC-2003] [IYIC-1985] [MIA-1906].
Refit/modification records: Underwriters assess whether any modifications to the vessel or its securing systems have been properly documented and approved, to ensure they do not compromise safety or coverage [IHC-2003] [IYIC-1985] [MIA-GUIDELINES].
Crew qualification records: Underwriters verify that crew members are properly trained in handling and securing items during boarding to prevent accidental loss or damage [IHC-2003] [IYIC-1985] [MIA-1906].
Navigation area endorsement: Underwriters confirm the vessel operates within the policy’s defined navigation area, as coverage for secured items may vary by region [IHC-2003] [IYIC-1985] [ITC-H-1983].
Loss history declaration: Underwriters review prior claims related to boarding incidents or secured items to evaluate the risk profile and potential for future losses [IHC-2003] [IYIC-1985] [MIA-1906].
Security system certification: Underwriters verify that onboard security systems, including alarms and locks, are certified and operational to protect secured items during boarding [IHC-2003] [IYIC-1985] [MIA-GUIDELINES].

Policy Wording Traps

Clause Type	Trap Mechanism	Scenario	Coverage Result
Care, Custody, and Control	Failure to maintain control during boarding	A secured item is stolen during an unauthorized boarding by a third party while the owner is absent	Claim denied due to lack of control [IYIC-1985]
Contractors' Exclusion	Excludes damage caused by hired contractors	A contractor boarding the vessel to install equipment damages a secured item	No coverage for damage caused by the contractor [IYIC-CLAUSE-10]
Consequential Damage	Limits coverage to direct physical loss	A boarding incident causes water ingress, leading to mold and electrical failure	Mold and electrical damage are not covered [IHC-2003]
Latent Defect Carve-Out	Excludes damage from pre-existing conditions	A secured item fails during boarding due to a manufacturing defect	Claim denied as damage is attributed to inherent vice [MIA-1906]
Wilful Misconduct	Excludes damage caused by intentional acts	A crew member intentionally damages a secured item during a boarding dispute	No coverage for wilful damage [ICA-2015]

Operational Reality

During boat boarding incidents, a common operational friction point arises when secured items are damaged or lost due to improper handling by yard or operator personnel. On the ground, yards often fail to document the condition of secured items before and after boarding, leading to disputes over the cause of damage [IYIC-1985]. Documentation requirements mandate that the owner or operator provide a detailed inventory and condition report of secured items at the time of boarding, typically through a signed log or work order. Failure to complete this documentation can result in denied claims under the Institute Yacht Clauses, which require proof of loss and damage causation [IYIC-CLAUSE-10]. Surveyors are generally involved post-incident to assess damage and determine whether it falls under general average or is a direct loss, referencing the York-Antwerp Rules 2016 [YORK-ANTWERP-2016]. Timing is critical, as notice of loss must be given to the underwriter typically within the policy notification period, which varies by insurer but is often outlined in the Institute Time Clauses Hulls [ITC-H-1983]. Common mistakes include delayed reporting, incomplete documentation, and failure to secure items in accordance with class society guidelines. These errors can lead to claim rejection or reduced settlement amounts, particularly if the deductible under the relevant policy clause of the Institute Yacht Clauses is not properly applied [IYIC-CLAUSE-10].

Related Risks

Unintentional damage to secured items during boarding operations → May trigger coverage under General Average provisions, but requires proper documentation and adjustment under [YORK-ANTWERP-2016]
Unauthorized access or theft during boarding → May fall outside coverage if not specifically included under the policy’s theft or non-collision clauses, and may be excluded under [IYIC-1985]
Failure to properly secure items prior to boarding → Could invoke deductible provisions under [IYIC-CLAUSE-10] or be excluded under warranties requiring proper stowage and lashing
Liability for third-party injury during boarding → May intersect with liability coverage limits and exclusions under adjacent policy sections, particularly if boarding is conducted without proper consent under [MIA-1906]

Questions for Your Broker

Does the policy specify coverage limits for secured items during boarding incidents under the Institute Yacht Clauses (1.11.85) [IYIC-1985], and are there sub-limits for specific types of items?
Are boarding incidents explicitly excluded under the policy, particularly under the terms of the International Hull Clauses (01.11.03) [IHC-2003] or Institute Time Clauses Hulls (1.10.83) [ITC-H-1983]?
What are the required notification timelines for a boarding incident under the Marine Insurance Act 1906 [MIA-1906] and the policy’s own terms?
What documentation is required to substantiate a claim for loss or damage to secured items during a boarding incident, in accordance with the York-Antwerp Rules 2016 [YORK-ANTWERP-2016] and the policy’s claim procedures?
Does the policy trigger a deductible under the Institute Yacht Clauses (1.11.85) the relevant policy clause [IYIC-CLAUSE-10] for losses arising from a boarding incident, and is it subject to a named storm deductible under LSW 3000 [LSW-3000]?
Does the policy require compliance with specific warranties, such as those outlined in the Marine Insurance Act 1906 [MIA-1906] or the MIA Guidelines [MIA-GUIDELINES], to maintain coverage for losses during a boarding incident?

References

York-Antwerp Rules 2016 (General Average) (framework) — https://comitemaritime.org/wp-content/uploads/2018/06/2016-York-Antwerp-Rules-with-Rule-XVII-correction.pdf
Lloyd's Standard Form of Salvage Agreement (LOF 2020) (framework) — https://www.lloyds.com/market-resources/salvage-arbitration-branch/lloyds-open-form-lof
Institute Yacht Clauses (1.11.85) (framework) — https://www.fortunes-de-mer.com/documents%20pdf/polices%20corps/Etrangeres/Royaume%20Uni/Institute%20Yacht%20Clauses%201.11.85.pdf
Institute Yacht Clauses (1.11.85) the relevant policy clause (Deductible) (framework) — https://www.fortunes-de-mer.com/documents%20pdf/polices%20corps/Etrangeres/Royaume%20Uni/Institute%20Yacht%20Clauses%201.11.85.pdf#clause10
International Hull Clauses (01.11.03) (framework) — http://www.fortunes-de-mer.com/documents%20pdf/polices%20corps/Etrangeres/Royaume%20Uni/International%20Hull%20Clauses%202003.pdf
Marine Insurance Act 1906 (UK) (legal) — https://www.legislation.gov.uk/ukpga/1906/41/pdfs/ukpga_19060041_en.pdf
MIA Guidelines (other) — https://www.marineinsurance.org/
Institute Time Clauses Hulls (1.10.83) (framework) — https://www.fortunes-de-mer.com/documents%20pdf/polices%20corps/Etrangeres/Royaume%20Uni/Institute%20Time%20Clauses%20Hulls%201.10.83.pdf
Insurance Act 2015 (UK) (legal) — https://www.legislation.gov.uk/ukpga/2015/4/pdfs/ukpga_20150004_en.pdf
LMA/IUA Named Storm Deductible Clause (LSW 3000) (framework) — https://www.lmalloyds.com/LMA/Wordings/Marine/Marine_Cargo/LMA_Marine_Cargo_Clauses.aspx

Disclosure

This content is provided for informational purposes only and does not constitute insurance advice. Coverage terms vary by policy, jurisdiction, and underwriter. Consult a licensed marine insurance broker for guidance specific to your vessel and operations.

Insurance Coverage for Secured Items During Boat Boarding Incidents