Insurance for Yacht Dealers

Posted October 22 2025



Yacht dealer showcasing a superyacht at a boat show with marina berths in background

What Types of Insurance Does a Yacht Dealer Need?

If you are a yacht dealer working with large and luxury vessels, your risk profile is unlike other retail operations. Looking at it from a very high level, the value of your inventory alone can run into the tens or hundreds of millions, sea trials bring third parties aboard, and operations span docks, marinas, shipyards, and international waters. Building your program around Marine General Liability is essential, but the right portfolio for a yacht dealer should align carefully with the specific exposures you face, including at shows, in storage, in transit, and during demonstrations.

Recent market coverage confirms that the appetite for very large yachts remains significant, which raises the stakes for every dealer. In 2024, manufacturer Heesen Yachts reported a record year with revenue of EUR 209 million and EBITDA of EUR 17 million. (Heesen) Ferretti Group reported similar success with a record €1,173.3 million in revenue, a 5.6% year-on-year increase. Yacht dealer numbers show the same: Q1 2025 reported a whopping 44% increase over Q1 2024 (Denison Yacht Sales)

These figures underscore just how high the dollar values at risk can be when something goes wrong. Having MHG Insurance to help guide you through the insurance policy you need makes a difference. We create the insurance policy to align your operations, resolve coverage gaps, and set limits and conditions that match your risk profile.

Below are the core coverages a yacht dealer should expect in a typical program, with plain-English context for why each matters when you are a yacht dealer.

Marine General Liability (MGL)

This is your foundation. MGL responds to allegations of third-party bodily injury or property damage arising from your operations. For a yacht dealer, that can include incidents during viewings, sea trials, promotional events, or at your premises. Think slips on a passerelle, damage to a client’s tender during a demo, or a visitor injury inside a display shed. Given the values involved, appropriate limits are vital.

Marina Operators Legal Liability (MOLL)

If you operate, control, or use berths, piers, or slips for customers’ vessels, you carry a duty of care for boats in your custody. MOLL is designed for liability arising from your marina operations when a customer’s vessel is damaged while moored or handled at your facilities. This is different from general liability because it addresses the special exposures that come with mooring, docking assistance, and day-to-day care of third-party boats.

Wharfingers Legal Liability

Wharfinger is the traditional term for an operator responsible for a wharf or dock. Courts have long recognized a wharfinger’s duty of reasonable care to provide a safe berth and warn of hazards that could impact the safe handling of any vessel. Dealers that control docking space should consider this specific liability protection.

Protection & Indemnity (P&I)

P&I addresses maritime third-party liabilities that can arise while a vessel under your control is being moved, demonstrated, or otherwise operated on the water. This can include injury to third parties, damage to other vessels or structures, and certain pollution liabilities tied to vessel operation. It is a core maritime liability component that complements MGL when your activities put boats underway. Several state and federal legal resources reference P&I as the standard form of marine third-party liability in vessel operations, reflecting its central role in maritime risk transfer (Virginia Code Service overview, 2024). (International Maritime Organization)

Limited Sudden & Accidental Pollution Liability

Fuel releases and other discharges can bring cleanup obligations, civil penalties, and significant reputational harm. In the United States, oil discharges are governed by federal law and international conventions. EPA resources outline pollution control and international rules under MARPOL . Keeping dedicated sudden and accidental pollution coverage in your policy helps address the costs of cleanup and certain liabilities tied to an unexpected release during yard work, fueling, or demos.

The U.S. Coast Guard’s National Pollution Funds Center also explains the federal funding and liability framework when spills occur, which highlights why dealers should plan for pollution scenarios even when incidents are unlikely. (United States Coast Guard)

Vessels Builders Risk

When you have an insurable interest in a vessel under construction or significant modification, builders risk is the way to insure the evolving hull, machinery, and materials from specified perils while work progresses. If your dealership engages with custom builds or complex completion work before delivery, this coverage becomes important. (Pacific Area USCG)

Not sure whether the work you provide is considered “significant”? Get in touch with us today: www.mhginsurance.com

Owned Equipment

Dealers often own specialized gear: lifts, cradles, staging, fork trucks, yard tractors, and electronics used to commission or display yachts. Owned Equipment coverage reduces operational downtime if key tools are stolen or damaged, and it helps you meet safety and schedule commitments during busy show seasons.

Owners Watercraft

If your business owns or operates boats for demos, customer shuttles, chase duties, or training, Owners Watercraft coverage insures those owned vessels for hull and associated liabilities. It complements P&I and MGL by insuring the boat itself as property, while your liability coverages respond to third-party claims.

Why these policies matter even more for luxury inventory

The larger the yacht, the more expensive minor incidents become. As the continued appetite for very large yachts grows in 2025, dealers' exposure values are also rising.

A quick scenario checklist for yacht dealers

  • Sea trials and demos: MGL, P&I, Owners Watercraft.
  • Boats in your berths: Marina Operators Legal Liability and Wharfingers Legal Liability.
  • Spill from fueling or yard work: Limited Sudden & Accidental Pollution Liability, supported by your emergency response plan in line with EPA and Coast Guard guidance.
  • Custom build or significant refit before delivery: Vessels Builders Risk.
  • Specialized yard gear: Owned Equipment.

For yacht dealers headed to major shows

Large shows draw high foot traffic, vendor moves, temporary berthing, and frequent short voyages. Make sure your certificates, limits, and named insureds match your real-world footprint, and that your program reflects the policy types above. The biggest benefit of a well-built portfolio is continuity. When something happens, the right coverages let you solve the problem and move on.

How MHG helps yacht dealers

MHG’s insurance professionals have provided specialist insurance advice for the maritime industry for over 30 years. We understand maritime coverage requirements, can help you identify gaps, and will align limits and terms to the way you operate. If you sell or represent luxury yachts, we can help you tailor Marine General Liability, Marina Operators Legal Liability, Wharfingers Legal Liability, Protection & Indemnity, Limited Sudden & Accidental Pollution Liability, Vessels Builders Risk, Owned Equipment, and Owners Watercraft.

Ready for a fast, expert review before your next show or delivery? Get in touch with me, Conor Hayes, by phone: +1 954 828 1819 or online: https://mhginsurance.com/Contact

Sources (AP style)