A book on yachting would not be complete without a few words relating to yacht insurance. There are hundreds of owners who never think of taking out a Marine policy on their boats, simply because they do not know how easy it is; twenty-five years ago indeed only a few insured because it was not generally understood that Lloyd's Agents were willing to underwrite their names against all yachting risks. All yachts should be insured, and therefore the writer will endeavour to explain some of the special clauses contained under a yachting policy.

The ordinary form for a Marine policy, printed and supplied by Government prior to August 1887, is in the main only suitable for merchant shipping; hence clauses have to be added to make that form of service in the case of yachts. Thus the time and dates between which the policy is to hold good must be stated, after which should come what may be called the—

No. 1 Yachting Clause, taking in the following conditions under which Lloyd's hold themselves liable. It runs thus:—

In port and at sea, in docks and graving docks, and on ways, gridirons, and pontoons, and / or on the mud, and / or hard, at all times, in all places, and on all occasions, services and trades whatsoever and wheresoever, under steam or sail, with leave to sail with or without pilots, to tow and assist vessels or craft in all situations, and to be towed, and to go trial trips. Including all risks and accidents arising from navigation by steam or otherwise. To include the risk of launching.

No. 2 Yachting Clause should allow the yacht to 'touch and stay at any ports or places whatsoever and wheresoever, and for any and all purposes.'

The No. 3 Yachting Clause makes the liability cover the hulls, spars, sails, materials, fittings, boats (including launch, steam or otherwise, if any), &c.

The No. 4 Yachting Clause is a promise to return a certain sum for every fifteen consecutive days cancelled, and for every fifteen consecutive days laid up dismantling, overhauling, repairing, altering, or fitting out.

No. 5 the Collision Clause.

No. 6 the Twenty-pound Clause.

No. 7 the Prevention Clause, No. 1.

No. 8 the Prevention Clause, No. 2.

With regard to the main clauses of the original Government form, it will be specially noticed that not one makes it necessary for the owner or skipper, or whoever may be in charge of the yacht, to be the holder of a Board of Trade Certificate. Then, after enumerating all the perils from which a vessel may run the risk of total loss, the form finishes up by stating that where only partial damage takes place, the underwriters are ready to pay an average for the repair of such damage at the rate of 3 per cent. That is to say, supposing a 10-tonner is insured at 900l. and she splits her mainsail and carries away her mast, which in its fall smashes up the boat, the policy will cover up to 27l. of the average value only, and the difference between that and the true value will become a loss to the insurer. This is known as the Average Clause.

To enable the insurer to claim on a partial loss to the full amount of that loss the Twenty-pound Clause is added, and for this in all policies over the value of 700l. a small extra premium has to be paid. This clause is decidedly in favour of the man who insures a large yacht, but is of little use to the owner of a small craft. In the first place, it leaves the underwriters liable only for losses above the value of 20l. and nothing under. It must be remembered that the general casualties on board a cruising yacht, when cruising only, are the carrying away of a bowsprit or topmast, the splitting of a topsail or spinnaker jib, and the whole lot would have to come to grief in a 10-tonner, for instance, before the owner would find his bill for damages sufficiently large to present to the underwriters for payment. With a 60-ton yacht it would be otherwise, as a topmast and topsail would alone run into 20l.; so it follows that the larger the yacht the more advantageous will be the addition of the Twenty-pound Clause, since the less will be the difficulty to make out a claim for a sum above that amount.

In a small 5-ton yacht for which the policy need not exceed 500l., the addition of this clause naturally lies in favour of the underwriters, for it is next to impossible for the yacht to receive such damage as will necessitate the outlay of 20l. to put her all to rights again. That is, such a catastrophe as must happen to oblige such an expenditure does not occur to one small yacht in a thousand, unless it brings with it at the same time very nearly, if not altogether, total loss. Some agents, however, are willing to lower the twenty and make the clause ten pounds, but of course this risk will mean again a slight extra payment. It is better for the small yacht-owner to pay for a ten-pound clause than have an extra clause which will be of no practical use to him.

The No. 1 Yachting Clause contains some very useful matter. A few years ago, for example, a 20-tonner left by the tide high and dry on the mud at one of our West of England ports, with a leg at each side to support her (her copper required cleaning), fell over and was considerably damaged. On the owner, who had insured his yacht at the beginning of the season, claiming for the damage she had sustained, the claim was disallowed, and after the powers that be had been invoked, the case was given against the owner, the accident not having taken place on the high seas. The form under which the 20-tonner was insured could not have contained the No. 1 Yachting Clause, otherwise the claim would have been in favour of the owner. All contingencies of that kind are met under this clause.

The No. 2 Yachting Clause allows the yacht to voyage to any part of the world and over any seas.

The No. 3 and No. 4 Clauses explain themselves.

The Collision Clause is a very necessary addition to all Marine policies. In case of a collision with another vessel, although the yacht may be in fault, the underwriters are liable under the clause to pay up to three-fourths of the value of the policy towards the repairs of the damaged vessel or the general repairs. The writer has a policy before him for 1,000l. with the Collision Clause inserted. Let it be supposed that the yacht for which this policy was taken out has run into another vessel, which has received damage to the amount of 800l., then the underwriters are responsible up to the amount of 750l.

Collisions with piers or the removal of obstructions do not come under this clause, and if thought worth insuring against, have to be freed by what has been termed in this notice No. 7, or the Prevention Clause No. 1. This clause enables the insurer to claim for the fourth quarter over and above the three quarters for which the underwriters are liable under the Collision Clause. It will enable him to hand over the business and cost of raising and removing from a fairway, for example, any vessel that he may have sunk through collision with his yacht, or repair any piers that may have been damaged through contact with the boat. Few, however, have this clause inserted in their policies, as so small a risk can safely be borne by an owner.

No. 8, or the Prevention Clause No. 2, only concerns yachtsmen who race their vessels. Its correct title is 'The Racing Clause.' This wipes out those few words from the policy that free the underwriters from all liability in the Twenty-pound Clause, and makes them responsible for total or other loss, should such take place, while the yacht is in the act of racing; for no simple policy or ordinary form provides against 'racing risks.'

The above remarks refer to policies of insurance on yachts of all sizes; the following will be interesting to the owners of small craft, as giving the average premiums that should be paid under the several conditions named.

For a 250l. policy covering five months, two guineas per cent. This policy should include the Twenty-pound and Collision Clauses.

The Protection Clause to cover five months should be added for the payment of 5 per cent. extra.

The Racing Protection Clause covering a similar length of time should be inserted at the rate of 10 per cent. extra.

A laying-up policy freeing the owner of all risks during the winter months should cost 6s. 8d. or about that sum, for a policy worth 350l. This policy will cover risks from fire, falling over, and all such accidents as may take place whilst a yacht is hauled up in a yard or elsewhere.

A laying-up policy to cover the winter months ought to be obtained at the rate of 2s. 6d. to 5s. for a like policy of 350l. This policy will cover all risks that may be incurred by a yacht laid up, dismantled, and left at her moorings, such as from fire, dragging ashore, being run into, &c.

Of course insurances differ as to the amount of premium to be paid according to the age of the yacht, her size, and the amount of the policy. Thus for a 100l. policy on an old worn-out 5-tonner, to cover summer sailing risks, as much as 5 per cent. has been paid, while for a 150l. policy for an old but well-kept-up yacht of a similar tonnage, 50s. has been the premium covering the five summer months.

In conclusion, it may be as well to mention that on no account is it a wise plan for the yacht-owner to insure his vessel for a less amount than her full value, including gear, furniture, such valuables as he keeps on board, stores, &c. There are times when, a yacht having suffered partial disablement, the underwriters may propose a composition, owing to there having been no fixed expense incurred in carrying out the repairs. Should a certain sum be agreed upon, and the owner happen to have only insured for a portion of the yacht's true value, whatever ratio that portion bears to the actual value, as laid down by him to the agents, will be deducted from the sum given as compensation. For instance, a friend of the writer insured his small yacht for 200l., her true value as given in by him at the time to Lloyd's agent being 250l. During the season, owing to a heavy gale of wind, she dragged her anchor, and, no one being on board, was picked up out at sea by a fishing-boat and towed back a derelict. The owner agreed to accept 25l. in compensation for the expenses incurred; but he was astonished when the amount handed over to him only proved to be 20l. On going into the matter, he was told that he had undertaken a fifth part of the risk on the yacht himself, in that he had insured for 200l., the yacht's real worth being 250l., and therefore he would have to bear a fifth part of the expense; and since he had agreed that 25l. was sufficient compensation, so the underwriters could only be liable to the amount of 20l. The case was brought into court and judgment given in favour of the underwriters. The yachting clauses described above are inserted on the usual Marine policy form, and the yacht insurer cannot do better than have the clauses as given in this chapter inserted in any policy form he may accept.

Attempts have been made from time to time to launch a Mutual Yacht Insurance Company, by which yachtsmen would be able to undertake their own risks by mutual co-operation and without reference to Lloyd's; but there are points, where a system of mutual insurance may benefit householders, who may be said to be localised, which would create difficulties almost sufficient to prevent any general Mutual Yacht Insurance from covering its expenses. The changes that occur in yacht-ownership are very many and frequent, and it must be often the case, that when a yacht-owner ceases to be such, any interest he may have had in a Mutual Insurance Company would have to cease too. Such changes rarely take place among the members of a Mutual House Insurance Company, and it thrives accordingly; but the constant shift of ownership, which may be seen annually by anyone who will take the trouble to study the 'Yacht List,' would surely prove a serious drawback to a Mutual Yacht Insurance Company.

In localities like the Clyde, however, where a yacht is almost as great a necessity as the possession of a stone frigate (house ashore), there seems no reason why Mutual Insurance among the local yacht-owners should not do well and prove a most successful undertaking; but then great judgment would have to be exercised as to the kind of risks such a company should incur, and many would have to be excluded, which Lloyd's agents up to the present time have been very willing to accept, such as the insurance of all yachts whose crews do not live on board while in commission, and the like. If the above remarks prove of use as well as interesting to yacht-owners, it must in justice be said that the writer is much indebted for the kindly help given him by his friend Mr. York, the secretary of the Royal Clyde Yacht Club, when compiling the information given.