Any skipper in an emergency situation will naturally focus first on ensuring safety, not on salvage costs or legal consequences. But after the immediate danger has passed, yacht owners are often surprised by the potential expenses involved in salvage operations.

What Is yacht salvage?

Salvage refers to the assistance provided to a vessel in distress at sea. Anyone who successfully helps save another vessel or prevents environmental damage is generally entitled to a salvage fee.

How much can yacht salvage cost?

Salvage fees can be substantial—sometimes up to 100% of the yacht’s value. If a yacht owner cannot immediately pay, the vessel can even be impounded until a guarantee is made, typically through insurance. In many cases, these negotiations go through local courts and may take years to resolve.

How are salvage fees determined?

Fees are based on several factors, as defined by the International Convention on Salvage, including:

• The total value of the salvaged vessel and cargo

• The level of danger and difficulty of the operation

• Weather and sea conditions

• Environmental risks

How yacht insurance can help

If you’re insured with Pantaenius, salvage costs are fully covered under the Hull policy—with no limit and no excess—as long as there’s an immediate threat of damage. To protect this coverage:

• Do not negotiate salvage fees yourself

• Contact your insurer immediately

• Do not sign any agreements or disclose the yacht’s value

The Pantaenius claims team is available 24/7 and has vast experience handling these situations.

What if you must agree on the spot?

If a salvor insists on an immediate agreement, use the Lloyd’s Open Form (LOF). This internationally recognized contract follows a “no cure, no pay” principle and includes an arbitration clause that helps resolve disputes fairly and efficiently. The LOF can even be agreed to verbally in emergency situations.