Navigators & General, part of Zurich, has increased its third-party and passenger indemnity cover for both the yacht and motor boat policy and small craft policy from £2m to £3m.

The move is prompted by the rise in both the number and size of third-party claims caused by both higher compensation awards and the new level of damages for personal injury set by the Court of Appeal.

Although current maritime laws limit most third-party claims to below the cover generally provided by UK pleasure craft policies, these laws are also under review with the limits set to be increased to much higher levels by international agreement in the near future.