Between owners wanting to spend more time cruising and technology making it easier, many are treating their yachts as true second homes. In turn, they’re complete with fine art and other valuable collections. But, bringing prized possessions aboard also brings risks that standard superyacht insurance many not fully address.
Rob, Carron, U.S. practice leader at Aon Private Risk Management, says most hull and machinery policies include some protection. The limit, though, is the question. “They do tend to have a sub-limit, a per-item sub-limit,” he explains. Depending on the insurer, the limit can vary widely, from $2,500 to $50,000. Owners and their representatives therefore need to consider exactly what is onboard, and whether specific pieces get coverage under a separate valuable-articles policy.
The issues extend beyond paintings and sculptures, too. Blythe Hogan, vice president of arts and collections at Aon Private Risk Management, says specialized coverage can extend to jewelry, for instance. It additionally can cover sports memorabilia and wine collections. These policies typically offer broader coverage, specialized claims assistance, and worldwide protection.
The onboard environment adds further factors affecting art on superyachts. Temperature and humidity fluctuations can impact sensitive objects, Hogan points out. So, too, can vibration and salt air. Photographs and collectible books are just two examples of materials that may require specific framing or encasements, Hogan notes. In some situations, she recommends consulting with a conservator. “We really want to enable clients to live with their art the way they’d like to have it,” she says. “But we want to make sure they’re educated so that nothing happens just because of the environment it’s in.”
A megayacht’s natural movement in the water presents risks, too—as does transporting the fine art to the yacht in the first place. In fact, Hogan notes, transit produces the highest frequency of collection-related insurance claims. It’s crucial to have professionals pack and handle a piece, whether it moves from a residence or a gallery to a superyacht. Simultaneously, she advises, have a professional ensure the piece acclimatizes, and then have that professional install it.
Naturally, a yacht needs to enter a shipyard period at some point, which can come with its own set of risks. In the case of hauled yachts, “they’ll be unplugged from power,” Carron says. “That can introduce environmental hazards,” especially in the summer. “High temperature can ruin a lot of things,” he adds. Considering he’s seen navigation and communications electronics suffer permanent damage under these conditions, “much is the same with artwork. It can definitely happen.” Hogan recommends temporarily placing collections in a climate-controlled art-storage facility.
Finally, both Carron and Hogan emphasize the importance of maintaining an updated list of the art and collectibles aboard the superyacht, along with their values. Condition reports, appraisals, photographs, and provenance records can help support owners in contacting insurers. The same documents can also keep a claim moving.
Aon Private Risk Management aonprivateriskmanagement.com
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