In order to sail in Spain, it’s compulsory to take out civil liability insurance for all motorboats, or for sailing boats longer than 6 metres (Royal Decree 607/1999 of 16th April 1999). When the time comes to sign their policy, your customers may be puzzled by the choice between “Spanish clauses” and “English clauses”.

Wondering where the differences lie?

Let’s start with some background information:
📝 The “English clauses”, whose official name is “Institute Yachts Clauses” (IYC) were drawn up by the Institute of London Underwriters in 1985.

📝 “Spanish clauses” is simply the term used to refer to insurance policies issued by default in Spain, which were last updated in 2014.

The main difference between both types of insurance is that…
👉 Spanish conditions work by inclusion, whereas English conditions work by exclusion. 

This means that, when you take on Spanish insurance, the risk covered by the insurer are clearly stated in the policy terms and conditions. However, the English clauses include everything that is not explicitly excluded.

In a nutshell, IYC and Spanish clauses differ in terms of the coverage they grant the insured in certain areas:
·        All risks.
·        Insured value.
·        Speed warranty.
·        Theft.
·        Sister ship.
·        Charter
As yachts can vary enormously in shape, size, and use, customers will rely on their insurer or broker to advise them on which policy wording will best suit their vessel and its intended use.

In the attached carousel, you’ll find more detailed information on the criteria that differentiate both sets of clauses.