Insuring a boat under the British flag since Brexit

British flag and boat insurance

Do you sail under the British flag in French territorial waters and/or do you want to take out a pleasure craft insurance policy? With the legislative changes linked to Brexit, you are likely to run into difficulties getting your pleasure boat insured. To shed some light on the matter, we review the insurance options available for a pleasure boat flying the British flag.

I have bought a boat with a British flag: how do I insure it?

Taking out pleasure craft insurance for your boat is essential. Indeed, damage, an engine problem or an accident can occur. Without insurance, you will receive no compensation and the consequences can be dramatic if you cause damage to a third party.

If you have just bought a boat flying the British flag, you will need to insure it, as with any 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 one is to shop around the boat insurers and find the one willing to draw up your policy. Indeed, insurance rules require insurance companies to exercise increased vigilance as soon as the legislation becomes more complex, in particular because you sail under the British flag. The administrative structures must be clearly identified, especially if they are linked to the British Overseas Territories (British Virgin Islands, Cayman Islands, etc.), whether you are a private individual or a company.

Furthermore, by leaving the European Union, the United Kingdom is no longer subject to CE marking, which since 1998 has proved the conformity of pleasure craft, particularly with regard to safety. While this means freedom from a binding regulation for its nationals, it is also a new difficulty for boaters and the start of a complex recognition procedure.

However, as long as you have all the vessel's ownership documents and can prove its CE conformity, some insurers will be able to offer you suitable boat insurance policies.

The second solution is to change flag.

This solution may seem administratively heavier, but it should be part of a broader reflection on the ownership of a vessel. All the more so as we can take charge of the entire procedure, from deregistration from the British flag to registration in France.

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

If you have already sailed under a third-country (non-EU) flag, you know how laborious administrative formalities can be and how much complication they bring, particularly with regard to Customs. Do not forget that most exotic solutions require setting up a company and involve an annual manager.

The first question during a customs inspection is to provide proof of payment of VAT on your boat. This question does not arise under the French flag, for example. Yet the number of boats that have taken advantage of the customs grey area following Brexit is quite considerable. Add to that the trade tensions between Great Britain and the European Union and you get boaters in the authorities' sights, rightly or wrongly, I leave you to judge.

I own a boat flying the British flag and I want to change it because my insurer no longer covers me

If until now you were able to insure your pleasure boat flying the British flag without any notable difficulty, things have probably 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 boating licence (depending on national regulations), conformity of the pleasure craft, etc.

By leaving the European Union, the United Kingdom has shaken up the world of yachting and becomes a third country. Thus, if you wish to change flag and your boat was built after 16 June 1998, you will generally have to provide a written declaration of conformity or resort to a PCA (post construction assessment: a type of compliance procedure according to the European standards in force). This is compulsory, unless it is an amateur build and the vessel's plans or technical data sheet are available.

Another constraint linked to the United Kingdom's third-country status: you will have to prove that VAT has indeed been paid and that the vessel has never left EU waters, or else have imported the vessel.

I want to buy a boat under the British flag: what checks should I carry out?

Learn more about the British flag

VAT

Importing a British pleasure boat into EU waters requires payment of EU VAT. If the owner of your future pleasure boat is not up to date, you will be obliged to do so upon purchase in order to enter the territory. It is therefore an essential point to check.

Conformity

You will also need to make sure that the craft meets the requirements of European regulations, mainly with regard to CE marking (safety equipment, etc.), otherwise authorisation to sail may be refused. Finally, it is essential for getting your boat insured, since insurance is linked to its conformity with CE standards, and without insurance it is best to avoid any movement on land or at sea.

I want to insure my boat