For other owners: what a machinery claim like this involves

What this page tells you: what a machinery insurance claim like this involves, with our real numbers.

Owners often ask how much work an insurance claim for a major equipment failure takes. We could not find a public figure for that, so here is our own case as one real example, set beside general guidance from public sources and a practical checklist.

General information only. This is not legal or insurance advice. Every policy is different, so read your own wording and take professional advice.

A. One real example: our numbers

This counts emails in the owner's mailbox about the claim and the policy cover from 18 Jun to 12 Oct 2026. It covers emails sent to or from the insurer, including messages where the insurer was copied. Times are Bangkok time (UTC+7).

What the insurer asked for, in order

1. 18 Jun: fill in a claim form (the policy clauses were sent at the same time).
2. 18 Jun: report the cause of failure once the owner's surveyor has reported, and confirm the warranty has been invoked.
3. 19 Jun: photographs of the damaged units.
4. 19 Jun: the owner's surveyor's report.
5. 19 Jun: an engineer's report.
6. 30 Jul: let a surveyor inspect the items before they are sent anywhere.
7. 31 Jul: pursue the warranty route first, including sending the units to the manufacturer in Italy for inspection, and report when they arrive.
8. 31 Jul: repair estimates.
9. 31 Jul: formal replacement estimates.
10. 9 Sep (underwriting): haul the yacht out, power it down to dead-ship state, report when it is ashore, and do not install the new AC until the cause has been identified.
11. 11 Sep (underwriting): lay the yacht up out of commission, with the affected components disconnected, until repairs are complete. On 15 Sep this was clarified: lay-up could be ashore or afloat, and the requirement covered the shore-power components.
12. 14 Sep (underwriting): written confirmation from the attending engineers that the faults have been found and fixed, before full cover is reinstated.
13. 22 Sep: the earliest possible notice of the builder's inspection date, so the insurer's surveyor could attend.
14. 25 Sep: a signed discharge form, to trigger a proposed settlement. The proposal was withdrawn on 6 Oct.
15. 6 Oct: establish precisely why the progressive failure happened, prove the loss, and send repair estimates.
16. 6 Oct and 9 Oct: the full report from the attending engineers. The 9 Oct email repeated that the owner must find exactly what is wrong and get repair estimates, not replacement estimates.

Some requests came more than once. The cause of failure was asked for on 18 Jun, 30 Jul, 6 Oct and 9 Oct. Repair estimates were asked for on 31 Jul, 6 Oct and 9 Oct. An engineer's report was asked for on 19 Jun, 31 Jul, 6 Oct and 9 Oct. A separate administrative request for a flag registration certificate is not counted here.

B. General guidance from public sources

This is a summary of public material. It is general information, not advice, and it may not match your policy or jurisdiction.

• Notify early and before any survey or repair. Standard yacht wordings require immediate notice of anything that may lead to a claim. Underwriters should be told before survey, so that they can appoint a surveyor if they wish [1][2].
• The owner usually has to prove the cause. Under English marine insurance law, the claimant must show on the balance of probabilities that an insured peril was the proximate cause. The insurer does not have to prove an alternative cause. Where the cause cannot be established, the claim can fail [3]. By statute, unless the policy says otherwise, marine insurers are not liable for ordinary wear and tear, or for machinery damage not proximately caused by maritime perils [4].
• Wear-and-tear and latent-defect wording matters. Many yacht policies exclude wear and tear, gradual deterioration, corrosion and lack of maintenance. Some exclude mechanical breakdown or latent defects altogether [5]. Where latent defects are covered, the usual Institute wording covers resulting damage but not the cost of repairing or replacing the defective part itself, and it depends on the owner having exercised due diligence [1][6]. A latent defect is a hidden flaw in materials, design or workmanship that reasonable inspection would not reveal. Gradual wear is not a latent defect [6].
• What the surveyor is for. An underwriters' surveyor is generally appointed to act impartially, to assess the cause, nature and extent of the damage and the most effective repair, and to report to underwriters [7]. Some insurers describe the role more narrowly, as assessing nature, extent and reasonable repair cost rather than diagnosing cause on the owner's behalf. Ask early, in writing, what the surveyor will cover.
• Repair, not replacement, is the usual measure. Indemnity is normally the reasonable cost of repair. Owners are commonly asked for repair quotations, sometimes at least two, and for paid invoices [1][7][8].
• Timelines. One specialist broker describes 4–8 weeks from incident to settlement for straightforward claims, with complex claims taking longer [9]. Machinery claims that need technical investigation often take months.
• Interim payments. Insurers generally have no obligation to pay in advance. Some will make a payment on account for a large approved item, usually less the deductible and a safety margin [7][10].
• Discharge forms. Settlement is often finalised with a signed discharge or release in the insurer's format [11]. In a UK ombudsman decision, a "full and final settlement" signature was not held binding because its implications had not been explained [12]. Read any discharge carefully, and take advice before signing.
• Fair handling rules (UK-regulated insurers). Insurers must handle claims promptly and fairly, give reasonable guidance and progress information, not unreasonably reject a claim, and settle promptly once terms are agreed [13].
• How many emails should I expect? We found no public source that gives a typical number of emails or exchanges for a claim like this. Our figures above are one real example, not a benchmark.

C. Practical checklist for owners

1. Read the policy's machinery, latent-defect, wear-and-tear and corrosion clauses before anything fails. Know who has to establish the cause.
2. Notify the insurer in writing as soon as a failure could lead to a claim, and before any survey, repair or removal of parts.
3. Describe what you observe (fault codes, readings, visible damage) and avoid guessing at causes on claim forms.
4. Ask the insurer in writing what the surveyor will and will not cover, who pays, and whether they will attend in person.
5. Keep the failed parts, label them, and give every party notice before anything is dismantled, shipped or tested destructively.
6. Arrange one jointly witnessed inspection with the builder, the manufacturer, the installer and the insurer's surveyor where you can.
7. Get repair estimates as well as replacement quotes, ideally from two contractors, with lead times.
8. Keep a dated log of every email, call and request, and keep track of anything still outstanding.
9. Pursue the warranty and the insurance claim in parallel, and ask each party in writing what it needs from you.
10. Ask about interim payments and lay-up or cover conditions early.
11. Do not sign a discharge or release until the full amount is agreed, and take advice first.
12. If you have legal-costs cover, check its notice and consent requirements before you instruct lawyers or experts.

Frequently asked questions