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Subrogation and recovery

Boat insurance term, area: Claims

Subrogation is the insurer's right, once it has paid a claim, to recover the money from whoever caused the loss. It works in both directions: if your insurer pays and someone else was to blame, it pursues them, and another owner's insurer can equally come after you. That is why third party liability cover matters more than hull cover: a recovery claim for someone else's yacht can be far larger than the value of your own boat.

What to check: Does the liability section defend claims that seem unjustified, including legal costs, and does that apply abroad? Does the policy give up recovery against family members or crew using the boat with permission?

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