What's Covered During Crew Handover?

When your crew changes, your yacht insurance still covers your boat — but only if the handover is done right. Coverage during crew handover depends on your policy’s terms, the crew’s training, and how the boat is handled during the transition. This guide explains exactly what is and isn’t covered, using real examples and real numbers, so you know what to expect when your crew changes.

What Is Crew Handover and Why It Matters

Crew handover is the process of transferring control of your yacht from one set of crew members to another. This could be when you hire new crew, when crew members leave, or when you bring in a new captain. During this time, your boat is still your responsibility, and your insurance must cover it — but only if the handover is done according to your policy’s rules.

Key Coverage Concepts for Crew Handover

Crew Liability

Crew liability is part of your yacht insurance that covers injuries to your crew members and any damage they cause while working on your boat. This coverage is active during crew handover, as long as the new crew is properly onboarded and trained.

Seaworthiness

Your boat must be seaworthy at all times, including during crew handover. Seaworthiness means the boat is in good condition and fit to sail. If the new crew causes an accident because the boat wasn’t properly maintained, your insurance may not cover the damage.

Agreed Value vs. Actual Cash Value

If your boat is damaged during crew handover, the amount you’re paid depends on whether your policy uses agreed value or actual cash value (ACV).

• Agreed Value: You and your insurer agree on a value for your boat when you buy the policy. If it’s damaged or stolen, you get that full amount, regardless of current market value.
• Actual Cash Value (ACV): You’re paid the current value of your boat, which is usually less than the original price due to depreciation.

Navigation Limits

Your policy may restrict where your boat can be during crew handover. If the new crew takes the boat outside your policy’s navigation limits, any damage may not be covered.

What Happens If Damage Occurs During Crew Handover

Scenario: Damage Occurs During a Crew Change

Your boat: A $1.2 million motor yacht
Policy type: Agreed value
Navigation limits: U.S. coastal waters only
Deductible: $10,000

Your new captain is still learning the boat. During a test run, he accidentally runs aground near a reef outside your policy’s navigation limits. The damage is $35,000.

What happens:

• The accident happens outside your navigation limits — no coverage for the damage.
• You must pay the full $35,000 out of pocket.
• Because your policy is on agreed value, you would get the full $1.2 million if the boat were a total loss, but this is just a partial loss.

Scenario: Crew Handover During a Lay-Up Period

Your boat: A $750,000 sailing yacht
Policy type: Actual Cash Value (ACV)
Lay-up warranty: Requires the boat to be in a secure location with no crew aboard

You’re in the process of hiring a new crew. The boat is in dry storage, but a temporary crew member is on board to monitor it. A storm hits and the boat is damaged by wind while the temporary crew is present.

What happens:

• The boat was not in a secure, unoccupied location — breach of lay-up warranty.
• Damage is $15,000. Your deductible is $5,000.
• No coverage because the lay-up rules were broken.
• You pay the full $15,000.

How to Ensure Coverage During Crew Handover

Follow Your Policy’s Crew Rules

Most yacht insurance policies have specific rules about how crew changes should be handled. These may include:

• Requiring a licensed captain to be onboard during handover
• Limiting how long a new crew can be onboard before being fully trained
• Requiring a written handover log

Keep the Boat Within Navigation Limits

If your policy restricts where your boat can be, make sure the new crew doesn’t take it outside those limits. For example, if your boat is only allowed in U.S. coastal waters, don’t let the new crew sail it into international waters during handover.

Don’t Break the Lay-Up Warranty

If your boat is in lay-up, make sure it stays in a secure location with no crew aboard. If you need someone to monitor it, make sure that person is covered under your policy and that the lay-up rules are followed.

What If the New Crew Causes an Accident?

Scenario: New Crew Causes a Collision

Your boat: A $900,000 superyacht
Policy type: Agreed value
Crew liability coverage: $250,000 per incident
Deductible: $7,500

Your new captain is still learning the boat. During a test sail, he collides with a smaller boat. Damage to your boat is $20,000. Damage to the other boat is $15,000.

What happens:

• Your deductible applies — you pay the first $7,500.
• Your insurer pays the remaining $12,500 for your boat’s damage.
• Your crew liability coverage pays up to $250,000 for the other boat’s damage — full coverage.
• Total out-of-pocket cost for you: $7,500.

What If the Boat Is Stolen During Crew Handover?

Agreed Value vs. ACV in Theft Scenarios

Policy Type	Boat Value	What You Get If Stolen
Agreed Value	$1.5 million	$1.5 million
Actual Cash Value (ACV)	$1.5 million (original price)	Less than $1.5 million (based on depreciation)

If your boat is stolen during crew handover, the amount you get depends on whether your policy is on agreed value or ACV. Agreed value gives you the full amount you agreed to when you bought the policy. ACV gives you less, based on how old your boat is.

What If the Boat Isn’t Seaworthy During Handover?

If your boat isn’t in good condition during crew handover and the new crew causes an accident, your insurance may not cover the damage. For example, if the boat’s engine is faulty and the new crew tries to start it, causing a fire, the insurer may say the boat wasn’t seaworthy and deny the claim.

What If the New Crew Isn’t Covered?

If the new crew isn’t listed on your policy or isn’t properly trained, any damage they cause may not be covered. Always make sure new crew members are added to your insurance and are trained before they take control of the boat.

What If the Boat Is Damaged During a Storm?

If your boat is damaged during a storm during crew handover, your coverage depends on your named-storm deductible. This is a special deductible that applies only to damage caused by named hurricanes or tropical storms.

Example: Your boat is damaged during a hurricane. Your policy has a 5% named-storm deductible. Your boat is valued at $1 million.

• You pay 5% of $1 million = $50,000.
• Your insurer pays the rest.

What If the Boat Is Polluted During Handover?

If the new crew causes an oil spill or other environmental damage during handover, your pollution liability coverage may apply. This part of your policy covers the cost of cleaning up the spill and any fines you may face.

What If the Boat Is Salvaged?

If your boat is damaged beyond repair during crew handover, your insurer may declare it a total loss or constructive total loss. In either case, you’ll be paid based on your policy’s agreed value or ACV.

What If the Boat Is in General Average?

If your boat is damaged during a crew handover and you have to pay for the cost of saving the boat (like hiring a tugboat), your general average coverage may apply. This part of your policy helps you recover those costs.

Final Takeaway

Make sure your new crew is trained, listed on your policy, and follows your insurance rules — especially navigation limits and lay-up warranties. Always keep your boat seaworthy and within policy boundaries. If you do, your insurance will cover you during crew handover, just like it does at any other time.