Navy ships are ships that server in the navy of their factions, the ships are acknowledged with a separate flag of those in their faction. It is obtained by becoming an officer+ in a Tradelands navy. The flag does nothing more then alert the enemy that there is official people here.
The Whitecrest flag is an anchor on the black side of it and a red line from top right corner to bottom left on the white side
The Verdantine flag is White and green. The green side is left alone whilst on the white side there is a gold sword in a 8 point star with 2 of the points as the sword like this