Most of us will never have to worry about insuring a mega or superyacht, those sea-going crafts ranging in price from $50 million to well over $100 million with hulls measuring anywhere from 80 to several hundred feet long. But for those fortunate enough to own such a vessel, the insurance risks are very real and very unique.

According to Damon Hostetter, senior vice president at ACE Recreational Marine (part of ACE Private Risk Services), the difference between a yacht and a "super" or "mega" yacht centers around the size and value of the vessel. Luxury yachts are usually longer than 78 feet and have a hull value over $5 million. A mega or super yacht generally runs a minimum of 148 feet (about half a football field and that can be considered “small” as mega yachts go) and are valued at $50 million and higher. For example the Octopus, which was built for multi-billionaire Paul Allen, is 414 feet long (almost one-and-a-half football fields) and cost $200 million to build.

Mega and superyachts are like luxury mansions on the water and many of the same risks found in large homes apply to them, albeit with some significant differences. Among the amenities frequently found on mega yachts are private theaters, sauna and steam rooms, beauty salons, helipads, mini submarines, gyms or exercise rooms, multiple deck levels above and below the water line, conference rooms, a medical area of some type, and cabins for guests and staff.