What is Mechanical Breakdown Coverage in a Yacht Policy?

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What is Mechanical Breakdown Coverage in a Yacht Policy?

Does it apply? A coverage discussion by Gary Clausen

Mechanical Breakdown means the failure of a part on the machinery due to a defect in the part or faulty workmanship as supplied by the manufacturer, making the part unable to mechanically perform the function for which it was designed. If the part fails because of an exclusion in the policy contract, the loss will be denied. “There is no coverage any loss caused by wear & tear, gradual deterioration, galvanic corrosion, lack of maintenance.”

Many companies reduce mechanical coverage as the vessels machinery gets older. For example:


Coverage, a. Hull Coverage (Including Tenders), item ii. Under Hull

Coverage, we do not cover: is amended by adding the following: underwater machinery (running gear of any kind), engine(s), transmission(s), generators, and any attached equipment to these components unless the loss or damage is caused by or resulting from the following named perils:

a) collision;

b) lightning;

c) sinking;

d) fire;

e) theft.

Talk to your marine insurance specialist about your policy today.

Gary Clausen, Twin Rivers Marine Insurance Agency
(800) 259-5701



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