Many Floridians are especially eager to navigate to Cuba being it’s a right off the tip of our coastline. Since some trade regulations were lifted last year, many Floridians find it very intriguing to plan for the journey straight across the sea from Marathon Key to this tropical island.
The desire for boat owners to navigate to Cuba continues to be a hot topic in the marine insurance industry. There has been some progress since our last update. A few insurance companies are evaluating applications for boat insurance that meet the regulations set by OFAC and the USCG and offering quotes. We are seeing this on a case by case basis if the vessel fits their underwriting guidelines.
But what does this mean for your marine insurance?
The terms of the quote may entail coverage warranties such as these:
- Policy is subject to minimum earned premium/or fully earned premium
- Increased deductibles
- Excludes confiscation by any authority
- Theft restriction/ or absolute exclusion for theft may apply
- Exclude Cuba navigation without prior agreement from OFAC and underwriters
- Coverage terms and conditions for Cuba navigation will vary between insurance companies
- Surplus lines fees and taxes will apply if it’s a non-admitted insurance company (such as the London markets)
- Trip policies or short term policies for the voyage only are not being offered
It is likely the underwriters would need a copy of all OFAC and Coast Guard approval documentation for all persons travelling to Cuba in advance of the binding date of coverage. Please note the coverage terms and conditions for Cuba navigation will vary amongst insurance companies. By far most domestic insurance companies are not offering coverage for these foreign waters, perhaps with time this too will change.
The Marine Insurance Specialists at Wallace Welch & Willingham understand the unique terms and conditions of these new coverage conditions and we look forward to providing you with an insurance quote.
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