Insuring a British-flagged boat since Brexit

Are you sailing under a British flag in French territorial waters and/or do you want to take out pleasure craft insurance? With the changes in legislation linked to Brexit, it is likely that you will encounter difficulties in insuring your pleasure boat. To clarify the situation, we will take stock of the insurance options for a pleasure boat flying the British flag.

Taking out pleasure craft insurance for your boat is essential. Indeed, damage, an engine problem, or a claim can occur. Without insurance, you will not receive any compensation, and the consequences can be dramatic if you cause damage to a third party.

If you have just bought a boat flying a British flag, you will need to insure it, just like any other flag. However, you may encounter difficulties with conventional insurers.

Since Brexit, many insurers have stopped covering vessels registered under the British flag.

Here are the two options available to you.

At first glance, the most logical option is to shop around for boat insurance and find one that will agree to establish your contract. Indeed, insurance rules require insurance companies to be extra vigilant as soon as legislation becomes more complex, especially because you are sailing under a British flag. Administrative structures must be clearly identified, particularly if they are linked to British overseas territories (British Virgin Islands, Cayman Islands, etc.), whether you are an individual or a company.

Furthermore, by leaving the European Union, the United Kingdom is no longer subject to CE marking, which since 1998 has proven the conformity of pleasure craft, particularly regarding safety. While this may be about freeing itself from restrictive regulations for its citizens, it also creates a new difficulty for boaters and the beginning of a complex recognition procedure.

However, provided you have all the vessel's ownership documents and can prove its CE conformity, some insurers may offer you suitable boat insurance policies.

The second solution is to change flag.

This solution may seem more administratively cumbersome but should be part of a broader reflection on vessel ownership. Especially since we can handle the entire procedure, from the removal of the British flag to registration in France.

We can change your boat's country of registration by leveraging our network and expertise with Customs, Maritime Affairs, and tax services. We are able to offer you various registration solutions in France due to our location, but also abroad depending on your situation.

If you have already sailed under a third-country flag (non-EU), you know how laborious administrative formalities can be and how complicated they can get, particularly with Customs. Do not forget that most "exotic" solutions require the opening of a company and involve an annual manager.

The first question during a customs check is to provide proof of VAT payment for your boat. This question does not arise under a French flag, for example. However, the number of boats that took advantage of the customs ambiguity following Brexit is quite considerable. Add to that trade tensions between Great Britain and the European Union, and you have boaters in the crosshairs of the authorities, rightly or wrongly, I'll let you interpret.

While up until now you could insure your pleasure boat flying the English flag without any notable difficulty, it is likely that things have changed with Brexit.

You can therefore undertake a change of flag and opt for the French flag or for another nationality (Polish flag, Dutch flag, Belgian flag, San Marino, etc.). These flags are accessible under certain conditions: European nationality (except Poland), residence in the country (except France and Poland), compulsory boat license (depending on national regulations), conformity of the pleasure craft, etc.

By leaving the European Union, the United Kingdom has disrupted the world of yachting and has become a third country. Thus, if you wish to change flags and if your boat was built after June 16, 1998, you will generally have to provide a written declaration of conformity or resort to a PCA (post construction assessment: type of conformity assessment according to current European standards). This is mandatory, unless it is an amateur construction and if the plans or the technical sheet of the vessel are available.

Another constraint related to the UK's third-country status: you will have to prove that **VAT** has been paid and that the vessel has never left Community waters, or that the vessel has been imported.

Importing a British pleasure boat into EU waters requires payment of EU VAT. If the owner of your future pleasure boat has not paid this, you will be obliged to do so upon acquisition to enter the territory. This is therefore an essential point to check.

You will also need to ensure that the vessel meets the requirements of European regulations, mainly regarding CE marking (safety equipment, etc.), otherwise authorization to navigate may be refused. Finally, this is essential for insuring your boat because insurance is linked to its compliance with CE standards, and without insurance, it's best to avoid any travel on land or sea.