Short answer
Yacht owner’s representative insurance starts with your own policies, because the yard’s insurance and the owner’s builders risk aren’t designed to protect you. Owner’s reps and project managers advise owners, approve work and sometimes sign off on yard invoices. If a decision goes wrong, the owner, yard or a contractor may look to you. Carry professional liability that names owner’s representation and project management on vessels, general liability without a watercraft exclusion that catches your work, and a contract that spells out your authority. Whether a policy responds depends on its wording and the facts.
What owner’s reps and yacht project managers do
A project manager runs the build or refit. An owner’s representative acts as the owner’s liaison and supports the owner’s decisions. Many people do both jobs on the same project.
The difference matters for insurance because the policy should describe what you actually do. A rep who only advises faces different questions than a manager who directs trades and approves invoices. Industry articles from Yachting Pages and Northrop & Johnson describe how these roles work at a yard.
Many of these firms have one or two people in Fort Lauderdale or Palm Beach. They often have no obvious insurance home, because land insurers and marine insurers may each see the project as the other’s problem.
Where yacht owner’s representative insurance claims come from
Claims usually start with a decision that cost the owner money or time. Common themes include approving work or invoices, schedule and budget overruns, acting beyond your authority and safety at the yard.
An approved invoice for work that proves defective can lead the owner to ask why it was approved. A refit that runs over budget can lead to questions about who tracked the costs. Whether a policy responds depends on its wording and the facts.
Why the yard’s and owner’s policies aren’t yours
Builders risk generally addresses physical damage to the vessel, not your liability. A yard’s policy is written to protect the yard. Neither is built around your professional exposure.
Yard contracts often require every contractor and consultant on site to carry insurance of their own. Never assume the yard’s coverage extends to you. A ship repairer’s legal liability policy, which many yards carry, is aimed at the yard’s own responsibilities.
Our article on naval architect insurance for yacht designers in Florida explains how watercraft exclusions and yard requirements work for another marine profession. Our contract check can help you review the insurance requirements before you sign.
Professional liability for yacht project managers
Professional liability responds to claims about your services, but only if the policy describes your work. Ask that the definition name owner’s representation and project management on vessels. If your work isn’t described, an insurer may question whether a claim falls within the policy.
Watch for two kinds of wording. Some forms carry watercraft exclusions. Others contain construction management wording that may limit or shape coverage for project managers. Our article on what counts as professional services under an engineer’s E&O policy explains why the definition matters. You can also read our professional liability page and our general and property liability page.
Authority in your contract
Your contract should say what you can approve and what you can sign. Acting beyond that authority can create claims, even when your intent was to help the owner. Spell out approval limits, invoice sign-off and who gives instructions to the yard.
A clear contract also helps the policy conversation. Ask whether your agreement limits liability and defines your authority, and share it with your agent. Our marine engineers and naval architects page shows how we approach marine work in Florida.
Workers’ comp when you are on board
Time spent aboard vessels, on docks or in a yard can raise workers’ compensation questions. Some maritime work may fall under federal programs rather than a standard state policy. Our article on USL&H insurance for marine consultants explains when this may come up.
What we see at Hardcover
Florida marine consultants often tell us they can’t tell which policy fits their work at a yard. Land policies may not describe vessels, and marine policies may not describe consulting. Owner’s reps and project managers feel this gap most, because their work sits between the owner, the yard and the contractors.
A review of the professional services definition, the watercraft wording and the yard contract usually shows where the gaps are. The SuperyachtNews article on authority adds useful industry background.
Questions to ask your agent
- Does my policy name owner’s representation and project management on vessels?
- What will the yard require from me?
- Does my contract limit my liability and define my authority?
Related questions
Am I covered by the shipyard’s insurance while I work there?
Usually not. The yard’s policy is written to protect the yard. Expect to carry your own.
Does the owner’s builders risk policy cover me?
Builders risk is aimed at physical damage to the vessel under construction, not your professional or liability exposure.
Is an owner’s rep the same as a project manager?
Not always. A project manager runs the work, while an owner’s rep advises and communicates for the owner. Your contract and policy should describe what you actually do.
General education, not legal advice. Hardcover is an insurance agency, not a law firm.