Do I need to let the insurance know if the yacht is going into drydock?

Posted by: Stuart Ribton
06 Jul 2026

Yes, in most cases you should notify your insurer before taking your yacht into drydock. Most yacht insurance policies include a clause that requires you to inform your underwriter of any planned maintenance periods, especially when the vessel leaves the water or enters a shipyard. Failing to do so can affect your cover in ways that are costly and frustrating. Below, we unpack exactly what changes, what your insurer needs to know, and how to handle the process smoothly.

What actually changes about your yacht insurance during drydock?

When your yacht enters drydock, the risk profile changes significantly compared to when she is in normal operation. Your vessel is no longer exposed to navigational risks, but she faces a different set of hazards: yard accidents, fire, theft of equipment, and damage caused by lifting or blocking. Some policies automatically adjust cover during maintenance periods, while others require an endorsement to remain valid.

The most common change is that your navigational cover is suspended or reduced. In its place, your insurer may apply a port risk or in-ordinary-use clause, which covers the vessel while she is stationary and out of the water. If your policy does not include this automatically, you may find yourself with a gap where certain types of damage are not covered at all.

It is also worth knowing that some insurers offer a premium adjustment during extended maintenance periods. If the yacht is laid up or in drydock for a significant stretch of time, you may be entitled to a refund of part of your navigational premium. This is not automatic, though. You need to formally notify your insurer to trigger it.

Are you legally or contractually required to notify your insurer?

In most cases, yes. While there is no single piece of legislation that universally mandates drydock notification, the contractual obligation in your insurance policy almost certainly does. Most marine insurance policies include a duty of utmost good faith, which means you are required to disclose any material change in the vessel’s circumstances, including planned maintenance periods in a shipyard.

Drydocking qualifies as a material change because it alters the risk your insurer has underwritten. If you fail to notify them and a claim arises during the yard period, your insurer has grounds to reduce or reject the claim on the basis of non-disclosure. This is not a technicality they are unlikely to invoke. In practice, claims during yard periods are scrutinised carefully, and missing notification is one of the first things underwriters check.

Beyond the policy wording, some flag states and class societies also have their own requirements around maintenance and survey periods. While these do not directly govern your insurance, they interact with it. A lapse in class or a missed survey can independently affect the validity of your cover.

What information does your insurer need before drydocking?

Before your yacht enters drydock, your insurer will typically need a clear picture of the planned work and the yard handling it. The more detailed and organised your notification, the smoother the process tends to be.

Dates: The planned start and end date of the drydock or maintenance period
Location: The name and location of the shipyard or boatyard
Scope of work: A summary of what work is being carried out, particularly any structural, mechanical, or electrical work
Lifting and blocking arrangements: How the vessel will be lifted, supported, and stored out of the water
Yard credentials: Some insurers ask for confirmation that the yard is reputable and appropriately equipped for the size of vessel
Crew status: Whether crew will remain on board during the yard period

Your insurer may also ask whether any hot work, such as welding or cutting, will take place. Hot work significantly increases fire risk, and some policies require a specific endorsement or additional precautions to be in place before this type of work begins.

Does drydocking affect your premium or coverage limits?

Drydocking can affect both your premium and your coverage limits, though the direction of change depends on your specific policy and the nature of the work being done. For extended lay-up or maintenance periods, many insurers will offer a return premium for the navigational portion of your cover, since the vessel is not at sea. This can represent a meaningful saving over a long refit period.

On the other hand, if the scope of work is significant, such as a full refit, structural modifications, or a systems overhaul, your insurer may apply a higher rate during the yard period to reflect the increased risk of damage in that environment. The agreed or insured value of the vessel may also need to be reviewed, particularly if the refit increases the yacht’s market value substantially.

Coverage limits for third-party liability may also shift during a yard period. Many yard contracts include an indemnity clause requiring the yacht owner to hold liability cover that extends to yard operations. Check that your policy covers this, or arrange a specific endorsement if it does not.

Who is responsible if the yard damages the yacht?

This is one of the most important questions to resolve before signing any yard contract. In most cases, the shipyard will attempt to limit their liability through the terms and conditions in their contract. Many standard yard contracts include clauses that cap the yard’s liability or exclude it entirely for certain types of damage, particularly damage caused during lifting, blocking, or launching.

This means that if the yard drops your vessel, damages the hull during blocking, or causes a fire through negligence, you may find that their liability is limited or disputed. Your own insurance policy becomes the primary route to recovering the cost of repairs in these situations.

Before signing a yard contract, it is worth having the terms reviewed carefully. Key points to check include:

What liability the yard accepts for damage caused by their own staff or equipment
Whether the yard carries their own marine liability or contractor’s insurance
Whether there are any exclusions that would leave you exposed
What process applies if damage is discovered after the vessel re-enters the water

Your insurer may also have views on the yard contract, particularly if the work is substantial. It is not unusual for underwriters to ask for confirmation that the yard is appropriately insured before agreeing to extend cover during a yard period.

How does a yacht manager help with drydock insurance coordination?

Coordinating drydock insurance is one of those tasks that sounds straightforward but involves a surprising number of moving parts. A yacht manager handles this coordination on your behalf, making sure nothing falls through the gaps during what is often one of the most operationally intensive periods in a yacht’s calendar.

In practical terms, this means notifying your insurer at the right time, with the right information, and following up to confirm that your cover is correctly adjusted for the yard period. It also means reviewing the yard contract before you sign it, flagging any liability clauses that could leave you exposed, and confirming that the yard’s own insurance is adequate for the scope of work.

During the drydock itself, a superintendent or technical manager keeps a close eye on the work being carried out. If damage occurs, they document it immediately and manage the process of reporting it to the insurer, which can make a significant difference to the outcome of a claim. The same applies to hot work permits, classification society attendance, and any change in scope that needs to be communicated to underwriters.

If you are planning a drydock or refit in 2026 and want to make sure your insurance coordination is handled properly, our technical support team works closely with owners, captains, and insurers to manage every stage of the process. Every yacht and every yard period is different, so the right approach always starts with a conversation. Get in touch with us and we will talk through what your specific situation needs.

Frequently Asked Questions

How far in advance should I notify my insurer before taking my yacht into drydock?

As a general rule, you should notify your insurer at least two to four weeks before the planned drydock date. This gives your underwriter enough time to review the scope of work, issue any necessary endorsements, and confirm that your cover is correctly adjusted before the vessel enters the yard. For major refits or structural work, earlier notification is advisable, as more complex adjustments to your policy may take longer to arrange.

What happens to my insurance if the drydock runs over schedule?

If your drydock period extends beyond the dates you originally notified your insurer of, you should inform them as soon as you know the timeline has changed. Most policies will accommodate reasonable extensions, but your insurer needs to be kept in the loop to ensure your cover remains valid throughout the additional period. Failing to update them could create a gap in cover for the days or weeks beyond the originally agreed yard period.

Is my yacht covered for theft of equipment and loose gear while she is in the yard?

This depends on your specific policy wording. Some marine insurance policies cover theft of equipment and personal effects while the vessel is ashore, but others exclude or limit this cover during yard periods when the yacht is unattended. It is worth checking your policy carefully and asking your insurer to confirm the position in writing before the drydock begins, particularly if high-value equipment such as electronics, sails, or tender gear will be removed or stored separately.

Do I still need crew on board during drydock, and does it affect my insurance?

Whether crew remain on board during a yard period is both an operational and an insurance consideration. Some insurers require a crew presence on board, particularly during extended yard periods or when hot work is taking place, as it reduces the risk of fire going undetected. Others are comfortable with an unattended vessel provided the yard has adequate security and watchkeeping arrangements. When you notify your insurer, confirm your crew status clearly and ask whether their presence is required as a condition of cover.

What is a hot work permit, and why does my insurer care about it?

A hot work permit is a formal document issued before any work involving open flames, welding, cutting, or grinding takes place on board. It sets out the precautions that must be in place, such as fire watch personnel, fire extinguishers on standby, and a post-work inspection period. Insurers care about hot work because it is one of the leading causes of serious fires in shipyards. Many policies require you to confirm that a hot work permit system is in place before such work begins, and some will not cover fire damage arising from hot work carried out without one.

Can I switch insurance providers mid-refit, or should I wait until the yacht is back in the water?

Switching insurers during a refit is possible but requires careful handling. Any new insurer will need full disclosure of the ongoing yard work, the current condition of the vessel, and any damage or issues identified during the refit. Gaps in cover during the transition are a real risk, so if you are considering switching, it is advisable to complete the transition before the drydock begins or after the vessel has been relaunched and surveyed. Mid-refit switches can also complicate claims if damage is discovered that straddles the changeover date.

Does my insurer need to approve the shipyard before I commit to a drydock booking?

Not all insurers require prior approval of the yard, but many reserve the right to ask questions about the yard's credentials, equipment, and insurance before confirming that cover will apply during the period. For larger or more complex vessels, underwriters may specifically ask for confirmation that the yard is appropriately equipped and experienced for the size and type of work involved. It is good practice to check with your insurer or yacht manager before committing to a yard, particularly if it is one that has not been used before, to avoid any last-minute complications with your cover.