The Impact of Membership Growth on Yacht Club Insurance Needs

When a yacht club expands its membership, schedules more events, or adds new services, it’s an exciting and hopefully profitable time. But it’s also risky, particularly if the yacht club is underinsured and lacks updated yacht club insurance.

After all, when a club grows, its exposure profile changes almost immediately. More people on the property, more vessel activity, and more varied programming all introduce new risks that a standard policy may not cover. For insurance agents, understanding how these expanded operations affect a yacht club’s insurance policy is essential for delivering accurate guidance as clubs prepare for next season.

Membership Growth & Expanded Club Operations

Growth is exactly what every club wants; it means they’re doing something right, and yacht clubs are an excellent market for insurance agents to pursue. In the next 10 years, it’s expected that the global yacht market will grow by 4.4%.

But as a club grows, so do their operations. Increased membership often leads to more regattas, social gatherings, training programs, youth events, and guest traffic. Clubs may expand dock space, add rental offerings, or allow members to borrow club-owned vessels more frequently. Each of these shifts adds layers of exposure that extend well beyond basic facility liability.

More activity on the grounds generally means more property concerns — from wear on docks and dry storage areas to increased demands on safety equipment and greater potential for bodily injury claims. Pollution can be a concern, too. No marina wants to foul waters and thus run afoul of the law.

In short, your clients need a more comprehensive approach to evaluating both property and liability protections as they grow.

Evolving Risks With Member-Driven Activities

Member-driven activities can particularly court danger. Regattas and sailing races introduce heightened liability, environmental exposures, and responsibility for visiting boats. Formal training programs place instructors, volunteers, and participants in positions that may require additional coverage. Private events hosted by members — everything from weddings to fundraisers — also expand exposure beyond day-to-day operations.

These activities often demand more robust yacht club insurance programs that incorporate general liability, participant accident coverage, event liability, hull protection for club-owned vessels, and endorsements for racing or regatta management. Environmental and pollution coverage becomes increasingly important as clubs handle more vessels, fuel transfers, or visiting fleets.

Clubs seeking to attract the next generation of members are also adding new amenities, events, and social programming, all of which increase operational complexity.

Common Coverage Gaps as Clubs Grow

Growth often exposes yacht club insurance gaps that standard club policies do not automatically address. Common trouble spots that clients may find with standard club policies include:

• Exclusions for racing or regatta activities
• Limited event liability for private functions or guest-hosted gatherings
• Insufficient protection for borrowed or guest vessels
• Missing endorsements for environmental or pollution exposures
• Underinsured docks, piers, or water structures
• Cyber vulnerabilities tied to reservation or payment systems

These gaps highlight how easily clubs can outgrow their existing programs. Agents should review these areas with clients annually to ensure policies reflect the evolving operations.

How Agents Can Leverage Merrimac’s Yacht Club Insurance Programs

You can partner with Merrimac Marine to structure tailored yacht club insurance programs that fill gaps and align with the club’s growth trajectory.

In fact, you can add substantial value to yacht clubs by educating management on how membership growth affects their insurance needs. Practical steps include:

• Reviewing the club’s current program with attention to new activities or amenities
• Asking targeted questions about the upcoming season’s event calendar, racing schedule, and member-hosted functions
• Evaluating vessel usage policies, including borrowing, guest operations, and expanded training fleets
• Encouraging safety and inspection protocols that improve underwriting outcomes

Help Your Yacht Club Clients Leverage Growth Opportunities

The bottom line: Membership growth signals a healthy and vibrant yacht club, but with that growth comes expanded responsibility. Insurance agents who proactively adjust coverage recommendations and partner with a specialist provider can help their clients prepare for a stronger, safer season ahead.

To review your clients’ yacht club insurance programs or identify potential gaps and opportunities, contact Merrimac Marine Insurance.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.