top of page

Lloyd's Of London. What is It?, and Why Are Americans Switching To Lloyd's?

Many have heard the name “Lloyd’s Insurance” or “Lloyd’s of London”, but it seems that there is some confusion as to what “Lloyd’s of London” Insurance is.

Lloyd's Market. The Worlds Leading Yacht Insurance.

Lloyd’s Of London is a physical insurance market in the city of London, UK where Insurance Brokers (agents) meet face-to-face with Insurance Underwriters (Carriers/Syndicates) to negotiate insurance coverage for their clients. Lloyd’s Market is the oldest insurance market in the world and is renowned for it’s insurance flexibility and innovation. All Lloyd’s Carriers must maintain an A financial rating, and must adhere to strict claims payment regulations.

The Lloyd’s broking process hasn’t changed in 200 years and is as follows:

The Broker will speak to the client and discuss his/her yacht and what their particular insurance needs are. The broker will then tailor a policy to fit their exact needs. The broker will then walk into Lloyd’s market and will sit down at the underwriter’s desk (Traditionally referred to as the “box”. See photo below). There, the underwriter and the broker will discuss and will negotiate the best rate and premium for the client. These negotiations can sometimes take hours. If the client is happy with the rate and coverage, the broker will give the “firm order to bind” to the underwriter and the underwriter will physically but his stamp and signature (traditionally referred to as his “Scratch”) on the policy documents, therefore making it an effective policy. Throughout the policy period, if any amendments need to be made, the broker will physically take the policy over to the underwriter and will get the changes endorsed in writing.

As U.S. insurance premiums have increased, recently Lloyd’s syndicates have been competing with American insurance carriers on coverage, price, cruising flexibility, and claims payment. This being said, the insurance broker negotiating Lloyd’s coverage for American yachts must be experienced with the process and available coverage, and must be approved by the U.S. director of insurance.

Our director, Hugo, worked in London as a Lloyd’s broker and successfully negotiated coverage and premiums for some of the largest superyachts in the world before starting Hanham Insurance Agency. He holds his Lloyd’s/London Market certification as well is approved by the U.S. director of insurance to negotiate Lloyd’s cover for American clients.

To find out if Lloyd’s Insurance is suitable for you, please contact Hugo by email at or phone +1 843 410 2990.

bottom of page