Author: Gianmarco

Yacht Insurance Claims: Common Pitfalls, Policy Exclusions and Loss Prevention Strategies

Post author By Gianmarco
Post date February 3, 2026

⬇ Download the full paper (PDF)waves-law_yacht-insurance-claims_issue-01_2026

Abstract

This paper examines the main recurring issues in handling recreational‑boating (yachting) claims and the most frequent grounds on which cover is contested (exclusions, limits, deductibles and the insured’s post‑loss duties). It also outlines practical safeguards and prevention strategies, from insurance due diligence to disciplined early‑stage claims management.

1. Marine casualty/nautical incident: working definition

Italian law does not provide a single codified definition of “marine casualty”; the Italian Navigation Code assumes the concept for the purposes of inquiries and related duties (art. 578 Italian Navigation Code). Administrative practice has therefore adopted a working definition (Ministerial Circular, 1963), later aligned with IMO standards and the EU framework, covering events caused by or connected with the vessel’s operations and including the risk of/and damage to the marine environment. In this sense, a casualty is an “extraordinary or harmful event caused by or connected with the vessel’s operations, capable of affecting safety/seaworthiness and/or causing harm to persons, property or the environment”.

2. The real issue: an in‑force policy does not necessarily mean effective cover

In the recreational‑boating sector it is common to equate having a policy with having fully effective cover. In practice, however, “policy in force” and “effective cover” are separated by a set of conditions, duties and limits that can materially affect the investigation and the claims outcome—particularly where exclusions, sub‑limits, incomplete documentation or an insufficiently verifiable reconstruction of the facts come into play.

3. Most frequent drivers of “no cover” outcomes

The issues most often leading to non‑operation of cover can be grouped into three main areas:
• Cover not aligned with the actual risk profile (in particular: compulsory third‑party liability vs hull policy and ancillary covers).
• Breach of post‑loss duties, especially as to timing and the manner of notification/reporting.
• Insufficient evidence of the sequence of events and the causes of the damage.

4. Immediate steps after a casualty

• Secure people and the vessel and take reasonable steps to mitigate loss, adopting prudent and proportionate measures in accordance with art. 1914 Italian Civil Code (duty to mitigate/salvage).
• Document immediately the context, sequence and damage (photos, videos, location/position, bearings/landmarks, weather data, persons on board and any other relevant elements) to preserve a complete evidential record of the event and its consequences.
• Make the required reports to the competent authorities under art. 60 of the Italian Recreational Boating Code (extraordinary event report).
• Notify the insurer/agent/broker promptly pursuant to art. 1913 Italian Civil Code (notice of loss).
• Avoid undocumented repairs or interventions on the vessel.

4.1 Practical note – “Extraordinary event” report (recreational boating)

In addition to notifying the insurer, art. 60 of the Italian Recreational Boating Code requires the master to report extraordinary events concerning the vessel or persons on board to the maritime (or consular) authority within three days of arrival in port; the deadline is reduced to 24 hours where the event has involved personal safety or environmental integrity.
In insurance practice—particularly under yachting policies—this requirement is commonly listed among the insured’s duties and its omission may adversely affect settlement. For operational purposes, the Italian Coast Guard provides an information page and a fillable form which may be useful to keep on board (“https://www.guardiacostiera.gov.it/portale/denuncia-di-evento-straordinario-diporto”).
Where an extraordinary event causes serious damage potentially affecting safety requirements (propulsion system, steering gear, hull/underwater body), compliance with the authority is not merely formal: a validation of the relevant certificate may be required or, in more significant cases, re‑issuance of the safety documentation (and navigation licence), with resumption of navigation subject to technical inspections.

5. Legal implications and preventive safeguards

In nautical casualties, insurance issues (cover operation, survey, reservations/settlement) and third‑party liability issues (collision/impact, personal injury/property damage, dealings with the authorities) often overlap. An unstructured early response may weaken both positions by affecting the quality of the evidence, the consistency of statements and the audit trail of the investigation. In this context, a specialist insurance broker often translates policy terms into operational instructions and helps ensure an orderly and verifiable information flow from the outset. In parallel, specialised legal support becomes essential where the matter involves disputes or potential liability exposure, or where a coherent documentary and communications strategy is needed in view of possible pre‑action steps or litigation. The aim is to avoid avoidable missteps that could irreversibly prejudice cover protection or liability management.

INDUSTRY INSIGHT
Insurance broker perspective | Contributor: Luca De Sanctis/ UNIYACHT
In yacht insurance practice, the role of the specialised broker extends well beyond the mere placement of the policy, developing instead along three complementary pillars: preventive advisory, risk placement, and claims management support.
At the preventive stage, the broker assists the yacht owner in identifying and assessing the risks inherent in the vessel’s intended operation, and in structuring the insurance programme accordingly. Coverage is tailored to ensure alignment between the yacht’s actual operational profile and the policy terms and conditions. This phase also includes the preparation of preliminary operational guidance — including contacts, procedures and checklists — to be activated in the event of a casualty.
Risk placement is managed by the broker following completion of preliminary due diligence activities, including identification of the Ultimate Beneficial Owner (UBO) and analysis of the yacht’s technical specifications and usage profile. On this basis, the broker approaches multiple co-insurers, sharing terms and conditions already negotiated with the lead insurer. The lead insurer typically assumes the largest proportion of the risk and performs a coordinating role both at underwriting stage and throughout the subsequent claims process.
In the event of a loss, the broker acts as a central point of coordination between the various stakeholders — including the yacht owner, insurers and insurers’ appointed surveyors — facilitating the flow of information and operational alignment, with the objective of ensuring that the claim is handled efficiently, transparently and in the interests of all parties involved

6. Conclusions

Discovering a lack of cover after a yacht casualty is rarely coincidental. More often it results from unrealistic expectations, limited familiarity with policy terms and an unstructured response to the event. A timely and informed approach significantly reduces the risk of disputes and enhances the prospects of a smooth claims outcome.

Disclaimer
WAVES & LAW is an informational column curated by Avv. Gianmarco Capece Minutolo and does not constitute legal advice. The industry contribution by Poliass S.p.A. reflects market practice and does not constitute insurance advice.

Studio Legale Capece Minutolo

Tags claims handling, loss prevention, marine claims, policy exclusions, recreational boating, yacht insurance, yacht insurance claims

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Rescue at Sea and Pleasure Boating: An Overview of Shipwreck Discovery, Assistance, Salvage and Towage

Post author By Gianmarco
Post date January 22, 2026

Sailing is a fascinating activity, but not without risks. In cases of emergency, mechanical failure or more serious incidents, several legal concepts of maritime law come into play: shipwreck discovery, assistance, salvage, and, more recently, towage and technical assistance in pleasure boating. Understanding the differences among these concepts is crucial not only to act correctly at sea, but also to avoid disputes and unexpected costs.

Shipwreck Discovery, Assistance and Salvage: First Distinctions

The three traditional institutions are governed by the Italian Code of Navigation (Royal Decree of 30 March 1942, No. 327, Articles 489–513) and the 1989 London Salvage Convention (implemented in Italy by Law No. 203/1995).

Wreck discovery (ritrovamento) refers to the fortuitous finding of a wreck, vessel or yacht at sea or stranded ashore, without the owner being aware of its position. Under Article 510 of the Code of Navigation, the finder must notify the nearest maritime authority within three days and deliver the wreck either to the known owner or to the authority. Upon compliance, the finder is entitled to reimbursement of expenses and a reward equal to 30% of the value of the asset found at sea, or about 20% if found on maritime public property (shoreline, beach, etc.).

Assistance (assistenza) is regulated together with salvage and recovery in Title IV – Book III of the Code of Navigation. Article 489 provides that assistance to a vessel or aircraft in danger of being lost, at sea or inland waters, is mandatory, provided it can be carried out without serious risk to the assisting ship, its crew or passengers. The duty lies with the master, unless aware that others are already providing adequate assistance.

Assistance differs from salvage because in assistance the distressed vessel is still capable of cooperating, maintaining some degree of manoeuvrability. Assistance entitles the salvor to: compensation for damages, reimbursement of expenses, and a reward, but only if the operation produces a useful (even partial) result (Art. 491). The reward is assessed considering the value of the assisted property, the degree of danger, the effort and risks undertaken, the time employed, and general expenses of the assisting enterprise.

The 1989 Salvage Convention modernised these rules by broadening the scope of ‘salvage operations’ to include acts to prevent or minimise environmental damage, even where the operation is unsuccessful. Article 14 introduced the concept of environmental salvage, partly derogating from the classic ‘no cure, no pay’ principle.

Salvage (salvataggio) is addressed by Articles 490 et seq. of the Code of Navigation. Unlike assistance, salvage occurs when the distressed vessel is no longer able to cooperate and the intervention of the salvor is decisive in preventing its loss. The law confirms the ‘no cure, no pay’ principle: compensation is due only if the salvage produces a useful or partially useful result. The award is determined according to the same criteria as assistance.

Towage and Technical Assistance in Pleasure Boating

With Legislative Decree No. 229/2017, Italy introduced a specific regulation on assistance and towage services for pleasure craft (Article 49-duodecies of the Code of Pleasure Boating).

This intervention aims to enhance safety at sea and prevent pollution, regulating minor activities compared to traditional maritime salvage.

“Minor assistance” in the context of pleasure boating is a technical, non-emergency service, such as:
– supply of fuel or batteries;
– engine restart;
– refloating in case of grounding;
– minor repairs at sea.

These services may also be provided by authorised private operators and mooring personnel, provided they hold professional liability insurance and have notified the competent Maritime Authority. Such services resemble a technical or craft service, giving rise only to the agreed fee, not to the reward mechanisms of the Code of Navigation.

Towage, under Article 49-duodecies, refers to the transfer of the vessel to the nearest suitable facility when the issue cannot be solved on site. This form of towage does not amount to salvage and differs from the technical towage regulated in the Code of Navigation, although in practice the boundary between these categories may sometimes blur.

Key Legal Implications

The distinctions among shipwreck discovery, assistance, salvage and towage directly affect the rights and duties of the parties involved, the economic consequences, and even criminal liability in cases of failure to render assistance.

This overview is not exhaustive but aims to provide initial guidance, useful both to yacht owners seeking protection and to operators called upon to intervene.

For specific advice, contract drafting, or dispute management in this area, contact us to discuss your case: we will analyse your situation and develop the most suitable strategy to protect your interests.

Studio Legale Capece Minutolo
Avv. Gianmarco Capece Minutolo

navigation

Lost, Damaged or Delayed Baggage: Supreme Court Decision No. 28672/2025 and Passenger Protection in Air Transport.

Post author By Gianmarco
Post date December 17, 2025

With its recent order No. 28672 of 29 October 2025, the Third Civil Division of the Italian Supreme Court returned to the issue of lost checked baggage and compensation for passengers. The case involved a Palermo–Verona flight: the passenger had duly handed over the checked baggage to the carrier, but upon arrival the suitcase was never returned. The airline was found responsible for the loss, yet the lower courts rejected the compensation claim due to lack of analytical proof of the baggage’s contents, deeming the equitable assessment of damages inapplicable.

Considering the decision unfounded as well as unjust, the matter was brought before the Supreme Court, which overturned the ruling, affirming that once the loss of the checked baggage is established and the carrier’s liability is identified under the 1999 Montreal Convention, the judge cannot deny compensation merely because the passenger cannot provide detailed proof of the contents and value of every single item. In such cases, damages may—and must—be assessed equitably, within the limits set by the Convention.

This is a fair and significant principle for the effective protection of travelers: it is unrealistic to expect passengers to retain purchase receipts or to be able to prove the contents and value of every item in a suitcase. Judges may rely on common-sense criteria (length of travel, destination, number of bags, nature of the trip) to estimate damages within the maximum liability limits established by the Montreal Convention of 28 May 1999, which governs international air transport of passengers, baggage and cargo (and applies to domestic flights via Article 941 of the Italian Navigation Code). The Convention entered into force in Italy on 28 June 2004.

Regarding baggage-related protection, Article 17(2) of the Convention states: “The carrier is liable for damage sustained in case of destruction, loss or damage to checked baggage, upon condition only that the event which caused the damage took place on board the aircraft or during any period within which the checked baggage was in the charge of the carrier.” It further provides that: “If the carrier admits the loss of the baggage, or if the baggage has not arrived within 21 days from the date on which it ought to have arrived, the passenger may enforce his rights arising from the contract of carriage”.
Article 22 sets out the limitation of liability: “In the carriage of baggage, the liability of the carrier in the case of destruction, loss, damage or delay is limited to 1,519 Special Drawing Rights per passenger, unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if required”.
Below is a practical checklist to help passengers avoid losing their right to compensation under the Montreal Convention.

Baggage Checklist – What to Do to Preserve Your Right to Compensation

1. Mandatory Deadlines for Claims
Damaged baggage – Send a written complaint within 7 days of receiving the baggage.
Delayed baggage – Send a written complaint within 21 days from the date the baggage is returned.
Lost baggage – Considered lost after 21 days. File a written complaint within 21 days from the scheduled arrival date.
2. Essential Documents
Complete the PIR (Property Irregularity Report) at the Lost & Found desk at the arrival airport.
Keep your boarding pass and baggage tag.
Collect receipts for essential expenses incurred due to the irregularity.
Document damages with photos or videos.
Send a written complaint via certified email, registered mail, or the airline’s official online form.
3. Practical Tips
Always complete the PIR before leaving the airport.
Send the complaint within the deadlines, even if the baggage is later found.
Include in the complaint: flight number, date, and description of the incident.
Keep copies of all documents submitted to the airline.

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Unfortunately, problems in air travel do not only involve baggage. Other frequent issues include:

• long flight delays or cancellations;
• denied boarding (overbooking);
• missed connections and lack of assistance from air carriers.

In these cases, passengers are protected not only by the Montreal Convention but also by EU Regulation EC No. 261/2004, which establishes common rules on compensation and assistance in cases of denied boarding, flight cancellation, or long delay, ensuring a high level of passenger protection through minimum rights and predetermined compensation based on flight distance.
If you have suffered baggage loss, damage or delayed delivery, or have experienced flight cancellations, delays, or issues linked to a travel package, you may contact the Firm using the dedicated form or by email to describe your case. We will analyze your situation and determine the most appropriate strategy to safeguard your rights.

Studio Legale Capece Minutolo
Avv. Gianmarco Capece Minutolo

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