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Bail bond loan

Boat insurance term, area: Liability

After a collision in foreign waters, a harbour authority or a court can hold the boat and demand security before it is released and the skipper is free to travel home. Local law sets the figure, the owner does not, and it falls due at once. A bail bond loan is money an insurer advances for that purpose. It stays a debt and goes back once the proceedings end or a third party reimburses it. Marine wordings differ widely on whether such an advance exists at all.

What to check: Two questions for your own wording: is security advanced abroad, and up to what figure, capped by the value of the boat or by a yearly limit? And on what terms does the money go back, interest free, or with interest once a repayment deadline has passed?

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