T_I_2015_04_

50. http://www.theislander.net

MARINE INDUSTRY NEWS

Jens Ploch
Pantaenius Spain S.L.
(+34) 971 70 86 70

Waivers of Subrogation -
The Extent and Problems

Dear Readers,

Many of you are already
getting your yachts ready for
the season whilst others are
still waiting for your slot in
the shipyard. One recurring
enquiry we receive during this
time of the year is related to
the Waiver of Subrogation
often requested by Shipyards
before hauling out your yachts

Requesting a Waiver of
Subrogation is a way in which
a shipyard can transfer its
liability for damage to the
vessel to the client. In other
words, the shipyard does not
take any responsibility for
the yacht whilst it is based in
the yard. Often the shipyard’s
insurance is not capable of
dealing with the high value
of some of the superyachts
available on today’s market

and therefore, the shipyard

protects itself by requesting

a waiver of subrogation from

the owner’s yacht insurance.

This means that the client’s

insurance company will not

be able to hold the shipyard

responsible for any losses

sustained whilst the vessel

is in their care and, as such,

cannot demand payment from

the yards insurers for that

loss. This may sound abusive

but it is a more and more

common practice in all size

ranges.

At Pantaenius this kind of

endorsement is evaluated

and issued on a case-by-case

basis and is dependent on

the length of stay, scope of

refit work, professionalism of

the shipyard and the extent

of the waiver of subrogation

itself. The financial costs can

vary from no premium being

charged to 0.1% of the sum

insured. Unfortunately for the

yacht owner these are usually

hidden costs that arise after

the refit deal has been signed.

Owners and Managers are

therefore strongly advised

to confirm costs with the

shipyard and their yacht

insurance provider before

committing to a refit and it is

imperative that they discuss

the refit plan before signing

a waiver of subrogation, if

not they could find that their

insurance cover may be void.

We wish you a smooth start

to the season and remain

at your disposal in our

offices worldwide.

Now also in Port Vell,

Barcelona!

Puerto Portals, Local 10, Calvia, Mallorca

T. +34 971 67 63 92 F. +34 971 67 63 50

[email protected] http://www.sunbirdyahts.eu

Contact Denise for all your Beneteau spares

European dealer for Benetti Sail Division

Offices in the UK, Mallorca

& Turkey for all your

needs afloat

Beneteau Brokerage Specialists