Mr Sansum, 43, said: "The Princess was on board the Fayed family's yacht, the Jonikel, and on July 15, the morning the news broke about Versace, I was heading towards my cabin and bumped into her standing on one of the glass fronted viewing decks.
"She was wearing a swimsuit with shorts and a thin blouse over the top and was looking out towards the sea. I said, 'Good morning Ma'am'. It was obvious she had been crying.
"She said to me, 'Have you heard the news about Versace?' I said I had. She was really upset.
"She was crying and I couldn't stop myself, so I put my arms out to comfort her and I gave her a hug. It was weird and I suddenly thought, 'Lee what are you doing?' and stepped back.
"She said to me, 'What do you think has happened? Do you think Gianni Versace was assassinated? Who do you think has killed him? Do you think they could kill me?'
"I had got to know her quite well during the holiday and by then I took that to mean someone official killing her. She didn't say, 'Do you think anyone could kill me?' She said 'they'. I think she meant government agencies.
"I told her she was perfectly safe with us just to calm her down. It was all I could do.
"I felt she was very troubled, not just by Versace's death, but for her own safety."