Special Risks & Others

We can insure all sizes of vessels, from small boats to super yachts, and we attend Boat shows, two of which being the Cannes “Festival de la Plaisance” and the Monaco Yacht Show, both being in September.

Questions

Most policies are written on an individual basis to be as taylor made as possible, but will include a number of common features. These include:

• Risk evaluation, with the aim of minimising the risk of accidents or losses. Onboard procedures are reviewed with regard to safety standards and compliance with international legislation (only applicable on larger vessels and usually done by surveyor).
• Insurance of hull, machinery, superstructure and fittings against physical loss or damage caused by accidental means (including malicious acts, jettison and piracy). A ship’s engine may often be separately insured. The value of the yacht is decided by both parties at inception.
• Cover can extend to tenders, jetskis, fun boats and other similar equipment.
• The boat may be insured in transit if conveyed on an approved vessel.
• Reasonable costs over and above the hull value can be met for salvage, wreck removal, inspecting the bottom after grounding, sue and labour.
• Third party liability, including watersports liabilities. This covers legal liabilities arising from the normal use of the yacht, pollution and the policyholder and other persons taking part in various sporting activities from the yacht.
• War insurance. Cover is provided in the event of loss or damage to your yacht caused by war, strike, confiscation or other associated events.
• Contents insurance is often a significant part of the overall value and extends to fine art, jewellery, antiques and other high value items. This cover is usually tailored to suit individual circumstances.
• Personal possessions. This can include cash and the fraudulent use of credit cards stolen from onboard the yacht.
• Employers liability insurance. Limits comply with statutory requirements.
• ‘Loss of charter hire’ insurance (i.e. if you are unable to charter your yacht due to an insurable event, unearned fees can be claimed).
• Personal accident and sickness cover for the skipper and crew. This may include a lump sum payment for death, disablement or permanent disability sustained due to bodily injury. Temporary total disablement and sickness can also be covered.
• Crew welfare package which may include medical and health cover, hijack and kidnap daily benefit, travel assistance and legal expenses. This can be part of the employers policy or individual personal policies can be provided for the captain and crew.
• Guest medical expenses.

In addition to providing insurance for the crew and skipper, we can also help with opening offshore banking facilities and retirement planning.

In this page, we will NOT provide information on household insurance as this is explained in the house page on the site. What we will try and provide is some basic information as to what one needs to cover when having a house built, or when coverage on a condominium is required.

Construction insurance

French legislation is quite specific when it comes to covering a construction program whether be it for a house or a building.

Ten year liability, known as Décennale: All persons or firms involved in the construction in any way should carry their own ten year liability in the event that their responsibility could be engaged in any work carried out. Any person or firm one decides to use should be able to provide proof of insurance at any time. The period of validity of the insurance must be for the entire duration of the construction.

All risks for building site, known as Tous risques chantiers: will cover the site and materials on the site during the construction of the building.

Strutural damage, known as Dommages d’ouvrage: whilst the “décennale” covers liabilities, this insurance will cover direct damages, even including subsidence in some cases, without needing to determine the responsibility of one of the parties involved in the construction of the building. In simpler words, it can be compared to “comprehensive” cover in motor insurance, whereby damages are paid and then Insurers will take action against the responsible party to obtain reimbursement of the indemnity. This may take years, hence the purpose of taking out out such Franchise.

Dommages aux existants (compare with automobile insurance)

Q: Who needs to carry ten year liability (décennale) ?
A: Any person/firm involved in the act of construction, plumber, builder, architect, the supervisor of the site (maître d’oeuvre), and the person who is having the house built (maitre d’ouvrage) if he is involved in any way in the design, concept or other.

Q: Do I need to take out a ten year damage policy (dommages d’ouvrage) if all participants carry ten year liability (décennale)?
A: Yes, by law you are required to. If the property is sold within ten years of its completion, the Notaire will require proof of insurance as cover will be passed on to the buyers. If you do not carry this insurance, you could be fined and even risk emprisonment.

Q: How is the premium calculated?
A: It is usually a percentage of the total construction cost, with a minimum premium level charged. A deposit is paid when the policy is taken out and when the construction is finished, the appropriate premium is calculated, the deposit deducted and the balance charged. The premium is paid once but cover lasts ten years.

Q: When does coverage start on the “dommages d’ouvrage” ?
A: The policy must be taken out before the construction is finished but it will only take effect when the ownership is actually passed on, known as “réception”.

Condominiums :

A policy covering the structure and the liabilities of the co-owners is to be taken out on behalf of the co-owners. This is usually arranged by the manager of the building known as the “Syndic”. This policy will NOT cover the contents of each occupant, whether co-owner or tenant, nor their liabilities. In some cases, managers may only cover some specified perils such as fire only to save on the premiums charged, which means that it is then up to each co-owner to cover other perils. This policy may also exclude betterments (decoration such as marble on walls, floors, etc).

It is highly recommend for co-owners to take out insurance, even if they do not live in the premises concerned, to cover standard perils should there be some lack of coverage in the condominium policy.

For France & Monaco only

Medical practitioners have little time to spare when it comes to dealing with their insurance problems. Special packages have been designed to cover these needs. One of the leaders in this sector is the UNIM Association. Once a member, a medical practitioner can benefit from group rates on death, permanent and total disability, temporary disability, top up medical, mortgage coverage, pension plans, as well as permanent and regular information supports relating to the profession. The Eric Blair Network can provide further information on these.

Professional indemnity insurance may also be available for some medical professions, but this is now becoming more difficult in view of recent changes in legislation for France.

Coverage provided is usually on an “all risks” basis. Most policies would include entrusted items, whether from clients or suppliers, within the stock sum insured. It is therefore important that the correct sum be stated in the policy.

The stock is covered at all times in the shop but must be locked up in a safe at night. A small amount of jewellery may be kept in some show-windows, but this sub-limit will vary depending on where the premises are located. Stock when carried outside premises will also be covered, up to a limit and restrictions as to whom may be covered when travelling with stock and where may apply. A survey of the premises and security measures will usually be requested by Insurers, which may lead to recommandations needing to be complied with in a certain time frame. Failing to do so may lead to Insurers cancelling cover.

Each year a new proposal form will need to be completed as details of the risk may vary considerably from one year to another.

Sendings are to be declared and only certain methods of expedition will be agreed to by Insurers: VD (declared value by La Poste), Chronopost, specialist transporters, etc. These sendings normally cover items sent by the Assured. It may be necessary in some case to also cover sendings returned by suppliers to the Assured.

Many sub-limits and options may be included in the policy, such as:

• Purchase of goods by stolen cheques
• No-claims bonus of the premium if there are no claims reported
• Assessor’s fees following a claim
• Temporary proctection measures following a theft
• Exhibitions at trade fairs
• Replacement of loss keys (safe, show-windows, doors)
• Etc…

When organising a reception, concert, wedding, sports event, making of a film, etc. the initial financial outlay may be considerable.

Cover can be arranged to cover these costs in the event of cancellation following unpredictable conditions such as:

• Adverse weather
• National morn
• Non presentation of pop star
• Other exceptional occurrences may fall within this class, such as “hole in one” at golf, personal disability for sports people such as Formula One drivers, etc.

One must not forget to also consider liabilities specifically relating to any event involving the public whereby organisers may be considered at fault if one of the spectators suffers injuries.

All of these can be arranged by the specialised team within The Eric Blair Network.