Introduction
In recent years, maritime regions traditionally traversed by merchant vessels have witnessed a noticeable increase in luxury yachts venturing into new and uncharted territories. While these areas present unique cruising opportunities, they simultaneously expose yachts to significant security risks. The relatively smaller size and confined structure of yachts render them particularly vulnerable to acts of piracy and other maritime threats. This development has prompted yacht owners to explore whether security measures analogous to those implemented on commercial vessels should be adopted to ensure the safety of both their vessels and passengers.
Armed Guards and Chase Boats
Historically, merchant vessels navigating high-risk areas, such as piracy-prone waters, initially faced significant resistance to carrying armed guards. This reluctance stemmed largely from flag state restrictions, concerns about escalation of violence, and legal ambiguities surrounding the carriage and use of weapons. However, as piracy levels surged dramatically in the Western Indian Ocean and the Gulf of Aden between 2005 and 2009, the maritime industry faced escalating threats. In response, privately contracted armed security personnel began to be employed on certain merchant vessels operating in or transiting through these high-risk regions.
Permission from the vessel's flag state to engage armed guards on their vessels often entails a meticulous application process. For example, Malta necessitates the submission of detailed documentation, including voyage plans and crew lists, as part of the approval process. In such cases, yacht owners must ensure that their vessel's security plan is updated to reflect operations within high-risk areas. Compliance with safety and accommodation standards is imperative, particularly when additional personnel are embarked. Upon disembarkation of the armed guard, all firearms and ammunition must be removed, and any national regulations pertaining to firearms within coastal or port states must be adhered to.1
An illustrative example is the case ofGolden Compass, where Captain Luis Nunez de Castro employed armed guards during a two-and-a-half-year circumnavigation involving transit through high-risk areas such as the Gulf of Aden. Following a near-encounter with Somali pirates, this decision underscored the necessity of enhanced security measures. The crew underwent coordinated drills with security personnel, and the yacht's security plan was synchronized with international naval forces, including the European Union Naval Force Somalia. The vessel's movements were duly registered with the UK Maritime Trade Operations and the Maritime Security Centre Horn of Africa, ensuring compliance with prevailing best practices for piracy-prone regions.2
Today, the key question is whether the use of armed security personnel offers a practical and effective solution for safeguarding passengers aboard yachts operating in these high-risk areas. Unlike commercial ships, private yachts, especially smaller ones, often lack the additional space required to accommodate armed personnel. In the case of larger yachts crossing long distances, the presence of security staff may be more common but still presents unique logistical considerations. Additionally, the presence of armed personnel aboard private yachts may be perceived as intrusive when compared to commercial vessels where such measures are more customary.
Given these factors, the use of chase boats may be considered a more pragmatic alternative. Moreover, since chase boats operate as separate, auxiliary vessels, their use typically does not necessitate prior approval from the flag state, as the service is considered extraneous to the yacht itself. These chase boats serve a dual function: acting as a visible deterrent to potential threats and facilitating swift responses during emergencies. Additionally, chase boats enhance situational awareness by enabling early threat detection. Effective communication and coordination between yacht crew members and chase boat personnel is also critical to ensure a cohesive response to potential incidents.
Insurance Implications
Insurance considerations play a pivotal role in yacht operations within high-risk areas. Many insurance policies exclude coverage for war zones or incidents related to piracy. Yacht owners are advised to thoroughly examine their policies to ascertain the extent of coverage available, especially since hull and machinery insurance typically covers physical damage to the yacht but may not cover incidents involving the use of "weapons of war". Whilst P&I insurance generally covers liabilities such as crew injuries and environmental damage, engagement of armed guards or chase boats must be disclosed to ensure that these activities are covered.
As mentioned above, the engagement of armed guards does not, in itself, negate P&I coverage, nevertheless, certain liabilities may be excluded depending on the contractual terms negotiated with the Private Maritime Security Company ("PMSC"). In accordance with prevailing industry standards, yacht owners are advised to notify their P&I club at least seven days prior to the intended embarkation of armed personnel.
The notification should be accompanied by comprehensive documentation, including official authorization from the vessel's flag state, a draft of the security contract – preferably structured in accordance with the BIMCO3 GUARDCON45 – along with the PMSC's documented rules on the use of force, and evidence of the PMSC's insurance provisions. These provisions should encompass comprehensive general liability, professional indemnity, and personal accident coverage, with appropriate minimum thresholds.
Moreover, compliance with all relevant licensing regimes governing the possession and use of firearms is essential. Yacht owners must ensure that all weapons are duly licensed not only under the laws of the flag state but also in accordance with the regulatory frameworks of any jurisdictions transited, including ports of embarkation and disembarkation.6
Engaging in proactive consultations with insurers is recommended to tailor coverage comprehensively to the yacht's operational requirements.7 This dialogue should precede the execution of any contractual agreements with PMSCs and serve to confirm that all proposed security measures are compatible with the vessel's insurance profile, legal obligations. Such due diligence is essential to safeguarding not only the physical integrity of the vessel and its crew but also the financial and legal interests of all parties involved.
Conclusion
The evolving nature of maritime threats necessitates a proactive and comprehensive approach to yacht security. Apart from engaging the services of professionals to assist them, yacht owners must ensure proper adherence to procedures, including obtaining necessary flag state permissions for armed guards and ensuring security contracts with reputable private maritime security companies comply with international standards. Additionally, they must address practical and logistical considerations such as the deployment of chase boats and coordination among security personnel. Equally important is ensuring adequate insurance coverage for the yacht, crew, and guests, particularly when operating in high-risk areas. By carefully managing these factors and adhering to applicable international and National regulations, yacht owners can effectively mitigate risks and maintain compliance within this challenging security environment.
This article was also co-authored by Matteo Fugazza.
Footnotes
1.T ransport Malta, Merchant Shipping Directorate – Carriage of Privately Contracted Armed Security Personnel on Board Maltese Ships, 2012.
2. SuperyachtNews.com – Operations – The golden ticket for 'Golden Compass'
3. The Baltic and International Maritime Council is one of the largest of the international shipping associations representing shipowners. BIMCO states that its membership represents approximately 60 percent of the world's merchant shipping tonnage and that it has members in more than 130 countries, including managers, brokers and agents.
4. An agreement for the hire of the services of private maritime security guards on ships – either armed or unarmed.
5. Section 6, Paragraph 12 of GUARDCO
6. USE OF ARMED GUARDS AND YOUR P&I CLUB – The American Club
7. Gard P&I Club,Piracy – Insurance implications and contractual considerations for yachts and commercial vessels, 2019.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
