Marine

Marinas and boat yards can be hazardous environments. In this post, we will discuss some of the main risks that exist in marinas and boat yards. We will also outline some safety essentials, including key safety equipment and fire safety procedures.

What Are the Common Risks in Marinas and Boat Yards?

Due to the hazards present in these environments, the three most common risks in marinas and boat yards tend to be relating to fire, flood and injury. It’s important to recognise these risks and what causes them so you are able to make changes to mitigate them.

Fire
Marinas and boat yards are full of flammable substances, such as oil, fuel, and certain cleaning products. These are often kept in close proximity to the sort of materials that can quickly catch fire, such as sails, tarps, and wooden structures. All of this means that even a small fire can escalate rapidly.

Flood
It might seem obvious given their proximity to water, but marinas and boat yards should not underestimate the risk of flooding. Floods can strike without warning, and floodwater could cause a huge amount of damage if you do not take precautions to secure your premises and equipment.

Injury
Any large body of water will be inherently hazardous. But as well as life jackets and lifebuoys, you should also look to safeguard against slips, trips, falls, and other injuries.

Key Safety Equipment for Marinas and Boatyards

To help reduce these risks and the scale of the damage or injury they can cause, it’s essential to have safety equipment within quick and easy access.

First-aid equipment
The marina or boatyard should have:

• onshore first aid kits
• offshore first aid kits
• at least one member of staff trained in first aid

Any first aid kits stored on boats should be fully waterproof, and the offshore first aid equipment should include foil blankets for people rescued from the water.

Water safety equipment
In terms of safety equipment and rules, you should always make sure there are:

• lifebuoys or throw lines within easy reach wherever anyone might fall in
• plenty of easily accessible ladders so that anyone who falls into the water will be able to quickly climb out again
• enforced rules that nobody should ever take to the water without wearing a life jacket

Fire safety equipment
To help mitigate the risk of fire, you should:

• thoroughly assess the fire risks in your marina or boatyard
• get an adequate number fire extinguishers to cover these risks
• ensure that your extinguishers are suitable for fighting the sorts of fires that are likely to break out (e.g. wood and paper, chemical, electrical etc.)

Marina and Boat Yard Safety Essentials

• Take the time to understand the risks you are facing. Perform a thorough risk assessment for your marina or boatyard. Identify all of the things that could possibly go wrong. Assess how likely it is that each risk you have identified will lead to harm, and also how severe the harm might be for every possible risk.
• Invest in the equipment you need. Your risk assessment may have revealed certain gaps in your current safety procedures. Invest in new equipment wherever necessary. Also be sure to check any existing equipment for use-by dates, and get adequate replacements as soon as you can.
• Invest in training and development. All staff should be familiar with your health and safety protocols, and all should know how to use your key safety equipment. Get first aid training for as many members of staff as possible, and make sure that all new members are given safety drills as part of their induction. Everyone, including all staff and all members, should receive refresher training at least once a year.
• Prevention is better than a cure. Stay on top of your routine cleaning and maintenance and you can help prevent many common accidents. Servicing engines and other machinery can help prevent fires. Keeping areas free from clutter can prevent slips, trips, and falls.
• Be prepared for an emergency. Make sure everyone knows exactly what course of action to take in the event of an emergency. For example, where should people gather if you need to evacuate the premises? Which emergency services will you need to contact, and who will be responsible for contacting them? Also be sure to take precautions to secure your premises against possible floods.

Specialist Insurance For Marinas and Boat Yards

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need for your marina or boat yard, to cover you, your staff, your members, your premises, and your equipment for a range of risks.

Find out more about our dedicated marine insurance services.

Every business in every sector must take cybersecurity seriously. Businesses in the marine industry are no exception.

In this post we will outline some of the major cybersecurity threats in the marine industry and discuss some ways you can keep your business safe from cybercriminals.

Which Marine Systems are at Risk of Cyberattacks?

Marine businesses across the world are increasingly relying on a mix of information technology (IT) and operation technology (OT) to maximise operational efficiency. Both IT and OT systems are vulnerable to cyberattacks:

Maritime IT Systems

These are largely the systems used onshore to manage the maritime operation as a whole. Cybercriminals may target data such as:

• accounts
• crew lists
• staff rotas
• payroll
• permits
• certificates

If they gain access to this data, they may steal it outright and sell it to other cybercriminals. Or they may encrypt the data as part of a ransomware attack. IT system breaches can result in a significant financial and reputational hit for maritime companies.

On-Board OT Systems

These can include onboard systems such as:

• PLCs
• SCADA
• ECDIS
• GPS
• systems for controlling engines and cargo remotely

It is easy to imagine the chaos that could ensue if a cybercriminal gained control of any of these systems. Along with the financial and reputational damages, there would also be potential for environmental damage, destruction of property, and even loss of life.

One increasingly critical area of concern is the Automated Identification System (AIS), which transmits vital information about a vessel’s identity, position, and course to nearby ships and coastal authorities. Originally designed to improve navigation and safety, AIS was not built with cybersecurity in mind. It is vulnerable to attacks such as spoofing and data manipulation, which could mislead vessels about the presence or movements of other ships, increasing the risk of collisions or grounding. As the marine industry becomes more interconnected, protecting systems like AIS is becoming a key focus for cybersecurity strategies and specialist marine cyber insurance policies.

How Big is the Risk of Cyberattacks For Marine Businesses?

The latest World Economic Forum report on cybercrime revealed that there were historic levels of data breaches in 2024. The forecast for 2025 predicts increasingly sophisticated attacks, largely fuelled by advances in artificial intelligence and marine learning technologies.

Despite the growing risk and sophistication of cybercrime, it seems that too many maritime businesses are either unaware of the risks, or unprepared to meet them. According to a recent DNV Maritime Cyber Priority report, only 40% of surveyed marine organisations are investing sufficiently in IT and cybersecurity.

Cybercriminals do not discriminate. They do not care what sort of business they target. No business is too big, or too small, for them. If they find a vulnerability, they will exploit it. And thanks to AI and machine learning technologies, they can quite easily target multiple businesses in multiple sectors with multiple attacks at once.

If your maritime business is not taking cybersecurity seriously, it may only be a matter of time before you fall victim to a cyberattack or a data breach. As the global maritime industry becomes increasingly aware of the risks of cybercrime, any business that does not take steps to secure itself may eventually struggle to get charters.

Regulations and Guidance for Mitigating Maritime Cyber Risks

The International Maritime Organization (IMO) has set regulations for cybersecurity onboard vessels. This means that shipowners, operators, and managers have a legal duty to meet certain cybersecurity requirements both onboard and offshore.

The IMO has also issued a set of guidelines on maritime cyber risk management. They outline the marine technology and assets that may be vulnerable to cybercrime, along with the operational, safety, and security implications of cyberattacks.

The guidelines also include some tips for identifying, analysing, assessing and communicating cyber risks in the marine industry.

You can access the full IMO cyber risk guidelines.

Key Cybersecurity Principles For Marine Businesses

No two maritime businesses are quite the same, so every business involved in shipping and logistics may face a unique set of cybersecurity risks.

Nonetheless, here are three key principles that every maritime business should consider as part of their cybersecurity strategy:

• Perform a thorough audit of all of your key systems, so as to identify any possible points of vulnerability. Once you understand the specific cybersecurity risks your business is facing, you will have a better understanding of the steps you will need to take to mitigate or minimise these risks.
• Staff training. Make sure that all staff, including onboard crews and onshore support workers, understand the risks of cybercrime. Everyone should be able to spot the signs of a potential cyberattack – such as a phishing email – and all should know what to do if they ever suspect that key data, or a key system, has been compromised.
• Software updates. Cybercriminals are constantly looking for vulnerabilities to exploit. Keep on top of updates for all of your key systems, both onboard and onshore. This can help to minimise the possible points of entry for cybercriminals.

Cybersecurity and Seaworthiness

As ships rely more on digital systems, cybersecurity has become a key part of seaworthiness. Recent legal guidance suggests that if a vessel does not have proper cyber risk management, including cyber insurance, it could be classed as unseaworthy. This could mean that marine insurance policies are invalidated in the event of a claim. For newbuild vessels especially, having strong cybersecurity protections and specialist cyber insurance is becoming essential, not just for safety but to meet legal and operational standards.

Specialist Cyber Insurance For Marine Businesses

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover your marine business for all cybersecurity risks, both onshore and at sea.

Our specialist marine cyber insurance policies can offer protection against a wide range of digital threats, including breaches of onboard operational technology (OT) systems like GPS, ECDIS, and the Automated Identification System (AIS). With targeted attacks on maritime navigation and communication systems on the rise, comprehensive cyber coverage is essential for safeguarding your assets, operations, and reputation.

Find out more about our dedicated marine insurance services.

In this post we will provide an essential introduction to cosmetic boat repair and hull maintenance. We will cover the importance of regular upkeep while outlining some of the key tasks you might consider as part of your routine boat maintenance.

How Often Should You Service a Boat?

You should give your boat a thorough servicing at least once a year, before the boating season begins. You should conduct certain other checks and maintenance procedures more frequently. For example, you should check fluid levels, including oils and coolant, as often as possible – on a daily basis, if you regularly use your boat.

You should also aim to check your boat’s key systems, including the engine, the electricals, the coolant system, the hydraulics, the steering, and the propulsion, at least once every three months.

Read our full guide to winter boat maintenance. We also have a guide to safely storing your boat out of season, and a guide to servicing your sailing equipment.

The Importance of Committing to Boat Repairs and Hull Maintenance

• Safety and security. Corrosion and degradation can lead to leaks. A well-maintained boat will remain seaworthy.
• Long-term cost savings. Routine boat maintenance can help you find and fix errors long before they become truly problematic, potentially saving on costly repairs in the long-term.
• Keep your boat looking new. For many, this is the most important reason to stay on top of boat maintenance. If you take personal pride in your vessel, then of course you will want to do all you can to keep it looking beautiful.

Hull Maintenance – Key Areas to Focus On

To monitor your hull’s integrity, assess it’s:

• Structural condition
• Transom
• Rudder
• Stringers
• Look for any cracks or chips
• Any signs of leaks or corrosion

Essential Hull Maintenance Tasks

If your boat has a fibreglass and gelcoat hull, first look for any signs of wear and tear. As well as a visual inspection, you can tap the hull lightly with a hammer. If it sounds hollow, it could mean there is a void in the core. Cut out any section that seems compromised, laminate it with new fibreglass, and then bond it with either polyester resin or marine epoxy.

If there are any cracks or gouges in the gelcoat, first sand the hull down to expose the laminate, before applying a fresh coat to reseal. A layer of polish can also further protect the gelcoat layer.

Also check for any marine coat, and be prepared to scrape back some layers of paint to apply some antifouling if necessary.

Cosmetic Boat Repairs

To check the cosmetic condition of your boat, pay attention to the:

• Deck
• Windows
• Key fixtures
• Fittings
• Interior upholstery

Cosmetic Boat Repair Tasks

Thoroughly clean your boat’s deck. You may wish to apply a new finish. Check the usage guidance on your chosen finish for tips on how often you may need to reapply.

Also pay attention to your boat’s various fixtures and fittings, including the thru-hull fittings. Give everything a clean and a polish, and always be on the lookout for signs of corrosion or damage.

Read our full guide to taking care of sails and sailing equipment.

When it comes to your boat’s interior, give every area a thorough vacuum, along with some deep dusting and cleaning. Wash all upholstery, and if it is looking torn or threadbare, get it repaired or replaced.

If you want to keep your boat’s interior fresh all year round, as well as routine cleaning, make sure it is as well-ventilated as possible. Also take care not to leave perishable food or drink for too long in your boat. As well as creating unpleasant smells, this can also lead to the accumulation of condensation and mould.

We Can Help You Take Care of Your Boat

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover your boat all year round.

Find out more about our dedicated marine insurance services.

As the sailing season approaches, it is important to ensure your vessel, and all of your equipment, is in good working order.

In this post we will outline all of the key maintenance tasks you should undertake to prepare for the upcoming season.

The Importance of Spring Maintenance for Sail Boats and Sailing Equipment

Dedicate a bit of time to some key maintenance tasks, and you can look forward to an entire season of smooth sailing. Regular maintenance will reduce your downtime while helping you save money on repair costs in the long-term.

Of course, it is best to think of boat maintenance as an ongoing commitment, rather than an annual task. Be sure to also read our guide to boat maintenance in winter, and our guide to where you should store your boat out of season.

Does Insurance Require Sailboats to be Serviced?

Your marine insurance policy might also require you to stay on top of certain maintenance tasks. For example, it might stipulate that your boat’s rigging must always be in good, seaworthy condition. So, if you do not commit to regular maintenance, you could inadvertently invalidate your policy.

Key Sailing Equipment to Check

• Hull and decks
• Rigging
• Sails
• Engine
• Electricals
• Safety equipment

Inspect the Hull and Clean The Decks

Thoroughly inspect every inch of your boat’s exterior, including the keel, the rudder, and all through-hull fittings. Look for scratches, gouges, abrasions, and repair anything you find.

If necessary, apply a new coat of antifoul or polish, and replace your anodes if they appear worn or corroded.

Clean your boat’s deck using dedicated cleaning products for each area. Polish your metalwork, and check the seals for leaks. Also inspect your deck equipment, including the stanchions, lifelines, chains, and the anchor system. Give all winches a clean and a grease, and test all hatches, windows, and portlights for leaks.

Check Your Sails and Rigging

Depending on where you stored your boat and your sails over the winter, you may need to clean your sails. In any case, the springtime before the sailing season begins is a good opportunity to check your sails once again for any signs of wear and tear.

Check your rigging for any weak spots, or signs of fraying or corrosion. Pay particular attention to the split pins, the shackles, and the wire guards. You may wish to hire a professional rigger for a dedicated pre-season check, to ensure that everything is working like it should.

Engine and Electrical Checks

First, give your boat’s engine a thorough visual inspection, checking for any signs of rust, corrosion, or damage. You may want to hire a specialist mechanic to give your engine a dedicated servicing.

Even if you do not get your engine serviced, you can clean it, check the fluid levels, and top up where necessary. You can also use this as an opportunity to stock up on engine spares, including fuel, coolant, and oil filters, so that you will have reliable backups once the season begins.

Make sure you record any engine maintenance you carry out in your ship’s log.

Finally, check all of your boat’s electrical components and appliances, including your lights, pumps, and gauging. Check all implements for signs of corrosion, and all wiring for signs of wear.

Check Your Safety Equipment

Many items of safety equipment have use-by dates. Pre-season is a good time to ensure that everything onboard is still in code and in good condition, and to replace anything that needs replacing.

Key safety equipment to check includes your life rafts, lifejackets, flares, and radio beacons and transmitters.

Are You Insured For This Year’s Sailing Season?

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need for this year’s sailing season, and beyond.

Find out more about our dedicated marine insurance services.

Winterising your boat means taking steps to protect it from harsh winter weather, to ensure it will be ready to sail again once spring comes around. An essential part of winterising your boat is ensuring you store it properly. In this post we will discuss the ideal winter storage solutions for boats, with some alternative suggestions if such storage is impractical or impossible.

Be sure to read our guide to essential boat maintenance for winter, too.

Where Is The Best Place To Store a Boat in the Winter?

Ideally, you should take your boat out of the water over the winter, and store it in a secure building, with heating. If this is not possible, at the very least you should aim to take your boat ashore over the winter. This can help prevent corrosion, while making essential winter maintenance a lot easier through giving you easy access to the hull and keel.

If you cannot keep your boat indoors, then you should cover it, to protect it from precipitation. But if you use a tarpaulin, take care not to block any vents, and do not allow it to rest directly against the hull or topside. This can lead to scuffing in high winds.

What Should I Cover My Boat With?

A canvas tarpaulin or a dedicated boat cover is better than a cheap plastic tarpaulin, especially if your boat will be in storage for an extended period. Plastic tarpaulins can quickly disintegrate.

Steps To Take To Winterise Your Boat:

To keep your boat in the best condition while it’s in storage over winter:

• Remove as many items as possible from the boat, including any food and drink. This will help prevent mould and mildew from forming.
• If your boat has sails, take them down, and get them washed and repaired as necessary. Store them in a warm and dry place.
• Remove all freezable liquids, including the water tank. Leave the taps in the open position, so that any condensation can drain out.
• Top up the fuel tank and add some antifreeze, which can help prevent rusting. Check your boat’s manual for best-practice tips.
• Clear all of your boat’s drains and check your piping and hoses for leaks.
• Thoroughly clean your boat before putting it into storage, and ensure it is as well-ventilated as possible to keep the interior fresh.
• Ensure the boat’s batteries are fully charged, then consider disconnecting them completely. This way, they will not drain through the winter, and there will be less fire risk.

What If I Have To Leave My Boat in the Water Over The Winter?

So long as your boat is securely moored, and so long as you can cover your boat to keep out the rainwater, your boat should be fine left in the water over the winter. British winters can get cold, but we do not face the sort of subzero temperatures that could really damage your boat.

How Often Should I Visit and Check on My Boat?

Try to visit your boat at least once a month throughout the winter, while it is afloat. This way you can check that everything is still secure, and you can address any potential issues, such as pooling water, before they become truly problematic.

If you are leaving your boat afloat over the winter, you may need to do some thorough maintenance in the spring, to ensure that there are no new leaks or signs of wear and tear. Also, be sure that your boat insurance covers you for keeping your boat in the water over the winter. Not all policies will include such cover, and some may stipulate that you must keep your boat onshore throughout the winter.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover your boat over the winter, and beyond.

Find out more about our dedicated marine insurance services.

If you stay on top of boat maintenance throughout the winter, then you will not face an overwhelming set of tasks once spring rolls around.

This post is an essential boat maintenance checklist for winter. We will cover all of the essential checks and repairs you should make at the start of the winter season that will make life easier once you are ready to start sailing again.

Be sure to consult your boat’s manual for dedicated maintenance tips for your specific model.

Hull Maintenance Checklist

• First, check your boat’s hull for any chips, scratches, or dents. Even the smallest chip can lead to leaks and water ingress, so aim to fill anything you find before you sail again. For GRP vessels, if necessary, apply some fresh gelcoat to reseal your hull, and give the hull a polish to protect the gelcoat layer.
• Check the underside of your boat for any marine growth, and check the paint for peels, craters, and blisters. If your boat is getting on in years, it may be time to scrape back a few layers of paint to reapply a few coats of antifouling.
• Check your anodes in steel vessels, and replace them if they appear worn. Tighten all bolts and clean their threads.
• Check for cracks and signs of corrosion where the hull and keel join, and get any necessary repairs as soon as possible.

Thru-Hull Maintenance

Check all thru-hull fittings for signs of corrosion or damage, and repair or replace as necessary. Also check any valves. Make sure they are fully operational with no signs or wear or damage.

Propeller Maintenance Checks

Give the propeller a thorough clean, and check it for any dings, cracks, warping, or other signs of damage. Make sure it is securely fitted, and replace any bearings as necessary.

Engine Maintenance Jobs

Aim to replace your boat engine’s fluids, along with the filters, at least once a year. You should also aim to replace the raw water pump’s impeller once a year.

Thoroughly inspect the engine’s cooling system, along with any cables, hoses, spark plugs, and any other connections.

Winter Boat Maintenance Tasks

Certain other tasks will depend on the specific type of boat you own:

• If your boat has sails, check the sails for rips, tears, or fraying, and get any necessary repairs. Also inspect your lines, and clean them if necessary.
• If your boat has any wood, clean it and treat it.
• Check all electricals are in good working order, and check the wiring for any wear and tear.
• Vacuum and clean any soft furnishings.
• Check for leaks around any windows and deck fittings.
• Check the condition of any safety equipment you keep on your boat, and replace anything that is damaged, or approaching its use-by date.

Get The Right Cover For Your Boat Over Winter, and Beyond

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover your boat over the winter, and beyond.

Find out more about our dedicated marine insurance services.

Fires at sea might not be as common as other risks, but they tend to cost marine companies much more than other types of claims.

According to the 2023 Nordic Marine Insurance Statistics (NoMIS), despite only accounting for 2.7% of all claims, fire and explosion claims accounted for 27% of the total claims cost distribution. This is nearly double the previous year’s figure of 15%.

The latest International Union of Marine Insurance report confirmed that fires are the leading cause of losses at sea, as they have been for the past 10 years.

In this post we will discuss the leading causes of fires at sea, and explore some ways you can safeguard your marine business against this risk.

Where Are Fires at Sea Most Likely to Break Out?

Fires at sea are most likely to break out in areas where fuels and other flammable materials are close to sources of heat.

This might include:

• Engine rooms
• Pump rooms
• Cabins
• Galleys
• Boilers
• Generators
• Cargo holds and storage spaces
• Incinerators
• Chain lockers

According to UK P&I Club, the majority of fires at sea start in ship engine rooms.

What Are The Leading Causes of Fire at Sea?

Most fires at sea start when a flammable substance falls onto a hot surface. In an engine room, this can occur when oils or fuel mists spray onto unprotected hot surfaces. In a cabin room, it could occur when a crew member accidentally leaves an electrical device plugged in, which can lead to overheating and fire outbreaks.

The Allianz Safety and Shipping Review 2023 revealed that the most serious fires can be traced to combustible cargo, which can quickly spread until it overwhelms the crew’s firefighting capabilities. Plus, certain materials may reignite spontaneously even after the fire appears to have been extinguished.

Combustible cargos can include scrap metal and self-heating fuels such as coal and DRI. Fires can start when cargo or containers are damaged or compromised, such as during a storm, or due to bad stowage. Lithium-ion batteries may also overheat and cause fires if they are damaged. This may pose a particular risk for roll-on/roll-off ferries transporting electric or hybrid vehicles.

The Allianz review also suggested that the size of the vessel can determine the severity of the fire. The bigger the ship, the harder it can be for crews to detect fires. By the time crews are able to respond to outbreak, the fire may have already spread too far for them to handle.

Plus, emergency responses and salvage operations become more complex with larger fires on larger vessels, which can make declarations of total loss more likely.

How to Prevent Fires at Sea

• Stay on top of maintenance and repairs, to prevent the risks of fires breaking out due to faulty wirings, mechanical failures, and electrical issues.
• Also ensure that your vessel’s fire detection and suppression systems are always in full working order.
• Provide adequate crew training, and run regular fire drills to ensure that everyone knows what they will need to do in the event of a fire.
• Also brief your crew on fire prevention measures – i.e. not keeping electrical items plugged in, smoking regulations, correct stowage procedures etc.

Make Sure You Are Covered For Fires at Sea

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure you have the insurance you need to cover you for fires at sea, including incidents that result in total loss.

Find out more about our dedicated marine insurance services.

We recently published a guide to the different types of loss in marine insurance. This post will take a closer look at a specific type of loss: Actual total loss (ATL).

What is Actual Total Loss (ATL)?

In marine insurance, the phrase “total loss” refers to a situation where a ship, or its cargo, has been either lost completely during a voyage, or else damaged so severely that it no longer has any value.

ATL means that the ship or cargo no longer exists at all. If the ship or cargo is insured, the policyholder can receive full compensation that is equal to the ship’s or the cargo’s agreed value in the policy wording.

An example of Actual Total Loss

During a voyage, a ship encounters a severe storm. The damages are significant, causing the ship to sink along with its cargo.

The ship owner will make a claim on their policy for the lost ship and cargo. Their insurer will launch an investigation. If they find that the ship is irretrievable – i.e. that a salvage operation would cost too much, or would be too difficult – the incident will meet the criteria for an actual total loss.

The ship owner will then be entitled to the maximum payout for the agreed value of their ship and value as specified in their policy wording.

The likelihood of ATL occurring will determine the price you pay for your marine insurance. Among other things, your insurer will calculate the price of your premium based on how likely you are to experience ATL, and on the amount such a loss would cost you.

Actual Total Loss vs. Constructive Total Loss

There is another form of total loss in the world of marine insurance. Actual total loss refers to situations where ships or cargo are completely destroyed. On the other hand, constructive total loss (CTL) refers to situations where the cost of repair or retrieval would exceed the ship or cargo’s insured value.

A major difference between ATL and CTL is in the way that claims are handled. ATL claims are usually pretty straightforward. As the policy owner, you are entitled to compensation for the full agreed value of your ship or your cargo. CTL claims, though, can be a little more complicated. If your loss meets the criteria for CTL, you have the option to let your insurer take ownership of your insured property – the damaged ship or cargo.

If you let your insurer take ownership of your damaged ship or cargo, they may then sell this property as salvage, before using the proceeds to offset your settlement. But if you prefer, you can retain ownership of your property. However, your insurer may then offer you a smaller settlement as a result.

Read our full guide to CTL, which covers in greater depth how this form of loss differs from ATL.

Worried about losses at sea? We can help you protect your most valuable assets

Everard Insurance Brokers are the specialist marine trading division of  James Hallam Limited who are accredited Lloyd’s brokers.

If you are worried about your rights and responsibilities following losses at sea, then we are here to help.

Find out more about our dedicated marine insurance services.