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Amanda Edwards

ships cargo

Different Types of Marine Insurance: A Guide
Different Types of Marine Insurance: A Guide 560 372 James Hallam

Marine insurance is designed to protect boats, their crews, and their cargo from the many risks associated with sailing. Marine insurance policies can also provide cover for any legal expenses that may arise from incidents.

In this post we will discuss some of the different types of marine insurance. For a full introduction to how marine insurance works, and what it covers, be sure to check our dedicated marine insurance hub.

Types of Marine Insurance Cover

Freight Insurance

This is specialist cover for marine trade businesses to cover any loss or damage to freight cargo in the event of accidents.

Marine trade businesses can also take out Freight Demurrage and Defence (FD&D) insurance to cover any legal costs that are not covered by other insurance policies.

Hull Insurance

This is cover for a ship’s hull, along with any pieces of equipment or furniture. Hull insurance can cover any repairs or replacements that may be necessary following accidents or incidents.

Ship owners may also choose to take out dedicated machinery insurance to cover damage to any essential machinery used on the ship. Or they can choose a combined Hull & Machinery (H&M) policy.

Liability Insurance

If a ship is involved in a collision, liability insurance covers the crew and any other individuals involved for compensation resulting from their injuries.

Marine Cargo Insurance

This covers the ship’s cargo for loss or damage. Marine cargo insurance can also cover for any losses incurred by delays either in sailing, loading, or unloading.

Most marine cargo insurance policies also cover for third parties, in the event of any loss or damage caused by heavy or otherwise dangerous cargo.

P&I Insurance

P&I stands for protection and indemnity insurance. This provides policyholders with cover for claims made by their crew and passengers for illnesses, injury, and death as a result of collisions or other incidents. In the result of a major incident at sea, P&I insurance can also cover for the salvage and removal of the shipwreck.

Types of Marine Insurance Policy

As well as different types of cover, there is also a range of different types of marine insurance policies:

  • Floating Policy – Also known as an open policy, or a blanket policy. It is designed for major exporters. Rather than taking out separate policies for each shipment, they can instead take out a floating policy to cover every shipment they make over an agreed period of time. Periodically, the policyholder will have to declare details of every shipment they made during this period.
  • Voyage Policy – A Marine Insurance policy designed to cover a single shipment or consignment.
  • Time Policy – A Marine Insurance policy that is issued for a fixed period of time, usually a year. The policy will cover all voyages undertaken during this period, with no need to take out separate policies for each voyage.
  • Valued Policy – A policy in which the value of a voyage’s cargo and consignment is specified in the policy wording. This makes it clear how much reimbursement will be due following an incident at sea.
  • Unvalued Policy – The opposite of a valued policy, in which the value of the cargo and consignment is not specified in the policy document.
  • Single Vessel Policy – A Marine Insurance policy that provides cover for a single vessel.
  • Fleet Policy – A Marine Insurance policy that provides cover for multiple ships, usually over a pre-agreed period of time.
  • Port Rick Policy – This provides cover for vessels while they are docked in ports. Usually, marine businesses will take out this policy when they expect their vessel to be anchored at port for an extended period of time. The cover usually stops the moment the ship leaves the port.

Get Comprehensive Maritime Insurance Cover From James Hallam

If you are not sure what type of Marine Insurance cover is right for you, give us a call.

We have partnered with Everard Marine and Commercial Insurance, which has given us a deep understanding of every aspect of the maritime industry, and the various insurance implications.

We deal with a wide range of niche insurance providers, we can arrange the cover you need, whether you’re looking to cover a single vessel or an entire marine trade supply chain.

Find out more about our specialist marine insurance services

small business

How Much Does Small Business Insurance Cost?
How Much Does Small Business Insurance Cost? 900 507 James Hallam

In this post we will discuss how much small business insurance costs in 2024. We will explore some of the factors that affect the cost of cover, along with some strategies for reducing your premiums.

Is Business Insurance Getting More Expensive?

A recent report by the Federation of Small Businesses revealed that around 60% of small businesses had seen their insurance premiums rise in the past year. What’s more, 52% of these businesses have seen a rise of 11% or more.

There are many reasons for the rising costs of small business insurance. Enforced government lockdowns during the pandemic forced many small businesses to make business interruption claims, which may have raised the cost of cover for all. Plus, the UK’s been hit by soaring inflation in recent years, which for many will have made a difficult situation even worse.

What Can Affect The Price of Small Business Insurance?

A number of things can affect the price of your small business insurance:

  • The size of your business. Generally speaking, the larger your workforce, the more you’ll pay for cover. However, insurers sometimes offer group insurance policies to cover employees who face similar risk profiles, which means that some larger businesses may be able to get a discount on their cover.
  • The industry you work in. Businesses in certain industries face different risks than others. For example, builders and architects may have to pay more for cover than, say, marketing agencies, as the risks associated with their work are much higher.
  • The people you’re covering. Different members of your team will face different risks, too. For instance, it will probably cost more to cover warehouse staff than office staff, as warehouse staff face a higher risk of injury.
  • The area you operate in. Businesses based in London and other major cities may have to pay more for cover than businesses located in less populous areas.
  • Your claims history. Unfortunately, if your business has ever made a claim on your policy, it can raise the cost of your premiums. It largely depends on the frequency of the claims, and the severity.

How Much Does Small Business Insurance Cost – Rough Estimates

The cost of cover can vary greatly from business to business. Market conditions can also affect the price of premiums. So, please treat the following as rough estimates only. For a more accurate idea of how much you should expect to pay for small business insurance, get in touch for a free quote.

All of our figures are based on the averages provided by the finance and lending research and information specialists at Business Financing.

  • Public Liability – On average, small businesses pay £118 a year for public liability cover. Yet depending on the business, the actual premiums can be as little as £50 a year, or as much as £5,000 a year.
  • Professional Indemnity – Small businesses can pay as little as £115 a year for their professional indemnity cover. However, Business Financing reports that businesses working in certain high-risk industries may need to pay up to 10x more.
  • Employer’s Liability – As we mentioned above, it will cost a different amount to cover different employees based on the work they do. For desk-based workers, you might expect to pay £60 per year for employer’s liability. Yet for any employee who does physical labour, this can rise to over £200 a year.

These are just three of the most common insurance products that small businesses might need. The more cover you get, the more you will need to pay. See the full cover available through James Hallam.

How to Reduce The Cost of Small Business Insurance

When it comes to insurance, your priority should be to get the cover you need, and not to make your premiums as low as possible. But there are a few things you can do to reduce the cost of your business cover:

  • Pay annually, rather than monthly. Some insurers offer small discounts if you pay for your cover in an annual lump sum, rather than in monthly payments.
  • Choose a different level of cover. You have a legal requirement to get some forms of cover, such as employer’s liability insurance. Beyond your regulatory obligations, the amount of cover you get is entirely up to you.
  • Pay a higher excess. Offer to pay a higher excess in the event of a claim, and you can reduce your monthly premiums.

However, there are serious risks associated with each of these money-saving strategies. Paying annually for your insurance can lead to cashflow issues. Intentionally choosing less cover can leave you vulnerable to underinsurance. Paying a higher excess could lead to trouble if you ever need to make a claim on your policy, as it will mean that your settlement could be less than you need.

Talk To James Hallam About Your Small Business Insurance Needs

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who are committed to getting you the cover you need at a price you can afford.

Talk to us, and we can help you ensure you have enough cover to protect your business, at a fair price. We will take the time to understand your risks so we can tailor a flexible SME insurance package that offers full cover at outstanding value.

Get in touch for a free quote today.

Seventeen Group acquires Gen2 Group
Seventeen Group acquires Gen2 Group 1184 540 James Hallam

Seventeen Group are pleased to announce our latest acquisition, Midlands based Gen2 Broking, led by Jon Nottingham, Paul Masters and Paul Dudley.

Gen2 controls £5M GWP and has focused on corporate clients in the Midlands region and beyond.

Seventeen Group CEO Paul Anscombe comments: “Seventeen Group has known Jon Nottingham for many years and sees Gen2 as a very natural fit. We will be building our presence in the Midlands in the years ahead using Gen2 to create a central ‘hub’. The business will be rebranding to James Hallam in due course.

Commenting on the deal Jon Nottingham adds “Building a business over the past 6 years has been uniquely challenging, but we remain committed to genuine independent broking and as such Seventeen Group is a perfect fit for us culturally, and somewhere we will enjoy being part of. Knowing Paul and the team for so many years, naturally makes this a much easier transition.”

End of Press Release

For more information contact
Jackie Knight Head of Marketing and Media
T: 07824 486319
E: jackie.knight@seventeengroup.co.uk

antiques

Unlocking Hidden Treasures: The Value of ‘Cash in the Attic’
Unlocking Hidden Treasures: The Value of ‘Cash in the Attic’ 600 400 James Hallam

Many of us have attics, garages, or spare rooms filled with forgotten items and family heirlooms. The concept of “cash in the attic” taps into the idea that these neglected spaces might hold hidden treasures of significant value. This notion isn’t just a fanciful thought but a reality for many who have discovered that old possessions can be worth a small fortune.

How to Understand the Value of Your Items

Often, we overlook the potential value of items inherited or collected over the years. Antique furniture, vintage jewellery, rare books, and even old toys can hold considerable worth. The key to uncovering this hidden wealth lies in proper appraisal. Professional valuation services can assess the true market value of your items, helping you understand their value and the best way to protect and manage these assets.

The Benefits of a Professional Appraiser

Engaging a professional appraiser ensures that every item is carefully examined and accurately valued. This process can reveal the historical significance, rarity, and market demand for each piece. An accurate appraisal not only satisfies curiosity but is also crucial for insurance purposes.

Examples of Valuable Items to Look Out For

  • Antique Furniture: Pieces from specific periods or crafted by notable makers. An old, intricately designed chair or table might be more valuable than you think.
  • Vintage Jewellery: Items made from precious metals and stones or unique designs. A seemingly ordinary brooch could be a rare designer piece worth thousands.
  • Rare Books: First editions, signed copies, or historically significant texts. That dusty book collection could contain a rare edition that collectors would pay a premium for.
  • Old Toys: Collectibles, especially in good condition and from popular eras. Original action figures or dolls in mint condition are highly sought after.
  • Artwork: Paintings, drawings, or prints that might be rare or by renowned artists. Even an unassuming sketch could turn out to be a valuable piece of art.

Discovering valuable items can be an emotional journey, connecting us to our past and the stories of previous generations. It’s a unique way of preserving heritage while potentially reaping financial benefits. In some cases, what seems like a dusty old painting or a tarnished piece of silver could be a collector’s dream.

Understanding Provenance

Beyond the monetary aspect, the process of uncovering and valuing these items can lead to fascinating historical discoveries. Items that have been passed down through generations may have stories attached to them that are worth exploring. Understanding the provenance of an item can increase its value and make the selling process smoother.

Ultimately, “cash in the attic” reminds us that treasures can be found where we least expect them. By taking the time to explore and appraise our stored belongings, we might not only find financial gain but also a deeper appreciation for the history and memories embedded in these items. Taking a fresh look at what we own and seeking professional guidance can unlock hidden value and provide a sense of fulfilment and connection to our heritage.

Get in touch

If you have any concerns or queries on your insurance cover please don’t hesitate to speak to us.
You can call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

watch collection

How Often Should You Have Valuable Items Valued?
How Often Should You Have Valuable Items Valued? 600 400 James Hallam

In the world of insurance and asset protection, valuations are a key topic of discussion. But what exactly is a valuation, and why is it so important?

What is a Valuation?

A valuation is an expert assessment of the value of an item, carried out by a professional with extensive experience and specialised training. This expert will consider various factors including the current market value, condition, provenance, and material of the item. The result is a “Retail Replacement” value, which represents the cost to replace the item with a similar one in the event of a loss.

Why are Valuations Important

  • Accurate Insurance Coverage: The primary purpose of a valuation is to ensure that your valuables are insured for their true worth. This prevents the risk of underinsurance, which can lead to significant financial loss if an item is damaged or stolen.
  • Claims Settlement: In the unfortunate event of a loss, a professional valuation provides solid evidence to support a full claims settlement, ensuring you receive the appropriate compensation.
  • Estate Planning and Inheritance: Valuations are also useful for making wills and understanding the value of inherited items.
  • Market Insight: Regular valuations provide insights into the current market value of your items, which can fluctuate significantly over time.

How Often Should Watches and Jewellery Be Valued?

The frequency of updating valuations depends on the item to be valued and market conditions. For example:

  • Luxury Watches: Given the volatile nature of the luxury watch market, an annual valuation is advisable.
  • Jewellery: Jewellery should be revalued every two years to ensure it is not underinsured due to rising market values.

What is Underinsurance?

Underinsurance occurs when an item is insured for less than its replacement cost. This often happens due to outdated valuations or incorrect initial assessments. In the event of a claim, underinsurance can result in receiving a much lower payout than needed to replace the item or less than you would need for an item to be repaired or restored.

How to Avoid Underinsurance

  • Regular Updates: Ensure your valuations are updated regularly, considering market changes and the specific type of item.
  • Professional Advice: Consult with professional valuers who have the necessary expertise and can provide comprehensive valuation reports.

Choosing a Professional Valuer

When selecting a valuer, consider the following:

  • Expertise and Training: Ensure the valuer has specialised knowledge relevant to your items.
  • Professional Indemnity Insurance: Verify that the valuer has adequate insurance coverage.
  • Reputation and Reviews: Look for valuers with a strong reputation and positive reviews.

Regular valuations are essential for protecting your valuable assets, ensuring your insurance cover is right, and providing you with peace of mind. By staying informed and proactive about valuations, you can safeguard your possessions and be prepared for any eventuality.

Get in touch

If you have any concerns or queries please don’t hesitate to speak to us.
You can call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

Home renovation, Apartment room during refurbishment

3 things to do before making home improvements
3 things to do before making home improvements 1000 667 James Hallam

Whether you’re renovating the entire house, updating your kitchen or installing a new home cinema, here are three things you’ll want to do before you get started.

1. Get into the Details

Your project may seem quick and easy, but before you get started, make sure you’ve gone through the details:

How to plan a home improvement project:

  • What’s the goal of the project? If you want to increase the resale value of the home, make sure you don’t add so many expensive improvements that you can’t recoup the cost.
  • Will you need a permit or a specialist to help? Even do-it-yourselfers often need experts – plumbers, electricians – and many seemingly small projects need permits as well.

2. Find the Right Contractor

One of the best ways to find a contractor you can trust is to ask friends or family for recommendations.

Questions to Ask a Contractor for Home Improvements

If you’re not sure the contractor is the right one for your job, ask questions:

  • What kinds of projects do you specialise in?
  • Do you use subcontractors, and if so, how are they chosen?
  • Can you provide proof of insurance to protect you and your other workers?
  • Do you have customer references?
  • Are you contracted to ensure the job is completed on time?
  • Can I see your “certificate of liability” to make sure your insurance limits are high enough for my project?

3. Review the Remodelling Contract

Always make sure you understand and are comfortable with the remodelling contract provided by your contractor before you proceed with the project. You may even want to have a solicitor/lawyer look it over, to make sure it is clear and covers what you need. For example, make sure your contract does not contain a section on “waiving your right to subrogation.” If the contractor is negligent, and you had signed a waiver like this, you couldn’t recover your losses from a third party if you needed to take legal action against them.

What Should a Home Improvement Contract Include?

Here’s what a contract should include (at a minimum):

  • The details of the project
  • Start and end dates, including interim dates for multi-phase projects
  • Information about permits, licenses and inspections, and who will be responsible for obtaining them
  • Payment amounts and due dates, warranties and guarantees – experts recommend never paying more than one-third of the total project cost up front. Check with your local government for their regulations.

If you have any concerns or queries please don’t hesitate to speak to us.
You can call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

How to Choose a Comprehensive Home or Business Security System
How to Choose a Comprehensive Home or Business Security System 560 528 James Hallam

In today’s environment, securing your home and business from intruders and fire threats is paramount. A wide range of security solutions is available to ensure high-quality protection for your premises.

In this post, we look at the different types of security, alarm and fire detection systems and what to consider when making your choice.

What Types of Security Solutions are Available:

  • Intruder and Fire Alarms: Modern systems are designed to safeguard against burglaries, duress, fire, and carbon monoxide.
  • CCTV and Access Control: Advanced surveillance systems, access control, and intercom systems help maintain strict security protocols.
  • Security Lighting and Doors: Implementing security lighting and reinforced doors add layers of resistance.
  • Safes and Vaults: Both standard and luxury safes, vaults, and panic rooms are available to ensure valuable items are securely stored.

Providers that are NSI Gold and BAFE approved reflect a commitment to high standards. Businesses with years of experience and a focus on quality service tend to deliver exceptional security solutions tailored to high-net-worth clients.

Types of Intruder Alarm Systems:

  • Detection Methods: Utilising window/door contacts, motion sensors, and vibration detectors, these alarms are highly effective. Wireless systems operate on an independent, encrypted frequency, ensuring uninterrupted protection.
  • Alert Systems: Options include “bells only” systems that offer audible warnings and app-based systems providing push notifications. Centrally monitored alarms connect to an Alarm Receiving Centre (ARC) for immediate response from keyholders or emergency services.

Upcoming Changes and Solutions to be Aware of:

  • BT All IP by 2027: The shift to fibre optic networks requires updating alarm monitoring equipment. Traditional landlines will be phased out, affecting communication between alarms and ARCs.
  • BT Redcare Transition: With BT Redcare ceasing operations by August 2025, clients must switch to next-generation products or reputable alternatives like CSL DualCom.

Fire Detection System Considerations:

  • Fire Alarms: From basic DIY smoke detectors to comprehensive BS5839 Part 6 Grade A systems, modern solutions cater to varying needs. Centrally monitored systems ensure prompt response, mitigating fire damage.

Safe Standards and Grading:

  • Safe Ratings: Safes are rated based on cash and jewellery storage capacity, with higher grades offering more security. Proper installation and integration into the overall security system are crucial.

Emphasising proactive measures and timely updates ensures continuous protection. For detailed guidance and to explore these services, visit the comprehensive security solutions guide from Premier Security.

Invest in comprehensive security solutions to safeguard your valuable assets and ensure peace of mind.

Get in touch

If you have any concerns or queries please don’t hesitate to speak to us.
You can call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

Bentley badge

The Rising Threat of Luxury Car Thefts and How to Protect Your Investment
The Rising Threat of Luxury Car Thefts and How to Protect Your Investment 1920 1280 James Hallam

Recent spikes in luxury car thefts highlight the increasing risk owners face. The rising threat of luxury car thefts requires owners to be vigilant and proactive. In this post, we explore why luxury vehicles are being targeted and what you can do to protect your vehicle.

Why Is Luxury Car Theft Increasing?

High-value vehicles are attractive not only for their monetary worth but also for their advanced technology and desirable parts, which can fetch significant sums on the black market. This trend is alarming, as it indicates a growing sophistication among thieves who target these vehicles.

Consequences of Luxury Car Theft

The consequences of luxury car theft extend beyond financial loss. The emotional impact and inconvenience of dealing with insurance claims and the replacement process can be daunting. Moreover, stolen vehicles are often used in further criminal activities, compounding the owner’s distress. The theft of a luxury car disrupts the owner’s life, causing significant emotional and logistical upheaval.

How to Protect Your High Value Car from Theft

To mitigate the risk of theft, luxury car owners should consider implementing these three key steps:

  1. Enhanced Security Systems:Investing in advanced security measures such as GPS tracking, alarm systems, and immobilisers can deter thieves. Modern security systems can alert owners and authorities in real-time, increasing the chances of recovery. Some systems even offer remote shutdown capabilities, which can prevent the car from being driven away once stolen.
  2. Secure Parking:Always park in well-lit, secure areas. Whenever possible, use garages with surveillance systems or monitored parking facilities. At home, install security cameras and motion sensor lights to deter potential thieves. Secure parking not only makes it harder for thieves to access the vehicle but also increases the likelihood of their detection.
  3. Smart Key Management:Thieves can exploit keyless entry systems through relay attacks. To prevent this, keep key fobs in signal-blocking pouches (Faraday pouches) and avoid leaving them near entry points at home. Additionally, consider disabling keyless entry when not needed or using additional authentication methods.

By taking these proactive measures, luxury car owners can significantly reduce the risk of theft and protect their valuable investments. Investing in enhanced security systems provides a robust first line of defence, making it challenging for thieves to access and steal the vehicle. Secure parking practices further protect the car by ensuring it is kept in a safe environment. Smart key management prevents sophisticated relay attacks, ensuring that keyless entry systems do not become a vulnerability.

Implementing comprehensive security measures can provide peace of mind and ensure that luxury car owners retain the enjoyment of their prized possessions without the constant worry of theft. By staying informed and prepared, owners can safeguard their vehicles against increasingly sophisticated criminal tactics.

Get in touch

If you have any concerns or queries please don’t hesitate to speak to us.
You can call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

Home renovation, Apartment room during refurbishment

Debunking Common Home Buying and Improvement Myths
Debunking Common Home Buying and Improvement Myths 1000 667 James Hallam

Homeownership is a dream for many, but with it comes a host of myths that can mislead even the savviest individuals. Let’s unravel some of the most common misconceptions to help you make more informed decisions about your home.

Myth 1: Renovations Always Increase Home Value

Many homeowners believe that any renovation will automatically boost their property’s market value. While improvements can improve your home and make it more comfortable to live in and more appealing to potential buyers, not all renovations guarantee a return on investment.

High-end kitchen remodels, luxury bathroom upgrades and even extending your home might not always increase the value by as much as you think.

How to Find Out If Renovations Will Increase Property Value

Research other properties in your area to look at the ceiling price for homes of your type or speak with an estate agent to ensure what your planning on doing will increase the value.

Myth 2: DIY Saves Money

The allure of DIY projects is strong, with countless TV shows and online tutorials suggesting significant savings. However, tackling complex tasks without proper skills can lead to costly mistakes and potential safety hazards. Sometimes, hiring professionals can be more economical in the long run, ensuring the job is done correctly and safely.

Myth 3: New Homes Are Maintenance-Free

A common belief is that new homes require little to no maintenance. While modern constructions are built to higher standards, they are not immune to wear and tear. Regular upkeep is necessary to prevent minor issues from becoming major problems. Ignoring maintenance can lead to expensive repairs down the line, regardless of the home’s age.

Myth 4: All Home Improvements Are Covered by Insurance

Not all home improvements are automatically covered by standard home insurance policies. Significant changes, such as adding a swimming pool or an extension, may require additional cover. It’s important to review your insurance policy and consult with your provider to ensure your improvements are protected.

Myth 5: Green Homes Are Expensive

Sustainable and energy-efficient homes are often perceived as costly investments. However, many green improvements, like energy-efficient windows or solar panels, can lead to substantial savings on utility bills over time. Moreover, government incentives and rebates can offset initial costs, making green upgrades more affordable.

Myth 6: Builders Have Adequate Insurance

Another critical myth is the assumption that your builders’ insurance will cover any issues that arise during construction. While reputable builders should have their own insurance, it’s essential not to rely solely on their cover.

Homeowners should secure their own renovation insurance to protect against potential liabilities and defects that may not be covered by the builder’s policy. This proactive step ensures comprehensive cover, safeguarding your investment and providing peace of mind.

How to Protect Yourself Against Unforeseen Issues

Understanding the realities behind these common myths can empower homeowners to make better decisions. Whether you’re considering a renovation, maintenance, or an upgrade, thorough research and professional advice are key to maximising your home’s potential and ensuring long-term satisfaction. Additionally, ensuring adequate insurance cover—both personal and through your contractors—is crucial to protect against unforeseen issues and financial losses.

We are here to help you. If you have any questions call any of the team on 0203 002 9859 or email pcl@jameshallam.co.uk

Yacht club and marina

Agreed Value vs Market Value for Boat Insurance
Agreed Value vs Market Value for Boat Insurance 650 433 James Hallam

Ensuring you have the right insurance coverage is crucial. Many marine traders, boat owners and even some insurance brokers may not fully understand the intricacies of their marine insurance policies, particularly when it comes to the marine section.

In this post, we take a look at key components of marine insurance, specifically the basis of cover, helping you to determine whether you are adequately covered or your client has adequate cover under their marine section.

What Types of Marine Cover Is There?

Marine insurance policies typically offer two main types of cover for your boats, vessels, or watercraft: Agreed Value and Market Value. Understanding the differences between these can help you make an informed decision about your coverage.

Agreed Value vs Market Value

Agreed value and market value policies differ on how and when the value of your vessel is made. In brief, agreed value policies set the value of your boat and watercraft at the beginning of your policy, while market value policies set the value of your vessel at the time of the loss.

Next, we look at each type of policy in more detail and the advantages and disadvantages of each.

Agreed Value Cover

Under an Agreed Value policy, the insurer and the insured agree on the value of the vessel at the start of the policy. This agreed value is based on the insured having a financial interest in the amount, supported by evidence provided in the event of a claim.

  • Advantages: In the event of a total loss, you receive the agreed amount, which can provide peace of mind knowing exactly what payout to expect.
  • Disadvantages: These policies can sometimes be more expensive, as the agreed value might be higher than the current market value over time.
    Your financial interest may be lower than the actual market value of your Vessel.

Market Value Cover

Market Value policies, on the other hand, work similarly to property market value. The payout is based on the vessel’s market value at the time of the loss.

  • Advantages: Premiums for market value policies can be lower, as they reflect the depreciating value of the vessel.
  • Disadvantages: If the vessel is undervalued, you may not receive enough to replace or repair it fully, and the principle of average may apply. This means if you are underinsured, any claim payment could be reduced in proportion to the amount of underinsurance. Therefore, the question should be asked at the start of a policy or renewal of the insurance contract, “What is the current value of your vessel, and explain the implications of ‘average’.

The Impact of Inflation and Rising Costs

With inflation driving up the costs of goods, services, and labour, ensuring that your insurance cover keeps pace with these increases is vital. If your policy’s sums insured have not been updated to reflect current values, you might find yourself underinsured. This can have significant financial implications, especially in the event of a total loss or major damage. As inflation has soared over the past few years, has the value of your Vessels changed? Could you replace the Vessel in the event of a total loss for the amount noted on the Policy Schedule.

Making Sure You Have Adequate Insurance Cover

To ensure you are adequately covered, consider the following steps:

  1. Review and Update Regularly: Regularly review your policy and update the sums insured to reflect current market values and replacement costs.
  2. Provide Accurate Information: Ensure all information provided to your insurer is accurate and up-to-date. This includes the value of your vessel and any modifications or additions.
  3. Consult with Experts: Engage with insurance brokers or consultants who specialise in marine trades insurance. Their expertise can help you navigate the complexities of your policy and ensure you have the right cover.
  4. Obtain an Up to Date Valuation
    In the event that you are unsure of the Value of your Vessel(s), it is always a good idea to obtain an up to date valuation from a marine professional.

Having the correct marine insurance cover is your financial safeguard. Whether you choose Agreed Value or Market Value cover, understanding the nuances of your policy can prevent unpleasant surprises in the event of a claim. As costs rise and the market evolves, regular reviews and updates to your insurance cover are essential to maintaining adequate protection.

Get In Touch to Discuss Your Insurance Requirements

If you are unsure about the adequacy of your marine insurance coverage, now is the time to consult with your broker or a specialist. Ensure your policy is up-to-date and reflective of current values to secure peace of mind and financial security for your marine business.

Call us on 020 3148 9540 or email info@everardinsurance.co.uk

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