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Skipper liability insurance: do you need it when you charter?
Short answer
The charter yacht is insured, but that policy is written for the owner and the boat, not for you as skipper. Skipper liability insurance fills the gap, including claims that go beyond the deposit.
When you charter a yacht you take charge of someone else’s boat and a crew for the length of the trip. The boat will normally carry third party and hull insurance, but those policies are written to protect the owner and the vessel. How far they protect you personally as skipper depends entirely on the charter company’s contract, and that is a document most charterers never see.
Three gaps come up again and again. Claims that exceed the limit of the yacht’s third party cover. Recovery action, where the hull insurer pays the charter company and then pursues the skipper beyond the deposit because the damage was caused by gross negligence. And claims from your own crew, for example after an injury during a manoeuvre. Skipper liability insurance is designed for these situations, often on an excess of loss basis, which means it pays once no other liability cover responds.
If you already insure your own boat with NAMMERT, your liability as the responsible skipper of a hired or chartered boat is part of the policy in every tier. Under clause A-1.2 of our watersports liability terms the charter agreement must be in your name and the hire may last up to 30 days. From Basis Plus, skipper liability applies in Europe and the whole Mediterranean. On Basis Plus the limit is 10 million euros per claim for yachts up to the size and engine power of your own boat. On Premium it is 20 million euros, with up to 15 million for any one injured person, whatever the size of the charter yacht. Damage to the chartered yacht itself is not covered, that is what the deposit and deposit insurance are for.
When comparing policies, look at four things. First, the limit of indemnity. Second, whether damage to the chartered yacht itself is included, because that is where recovery claims land. Third, whether claims between members of the crew are covered. Fourth, the cruising areas. Check too whether the policy applies to skippered as well as bareboat charters, and whether it asks for a particular licence such as the ICC or an RYA certificate.
Skipper liability insurance for a week or for the whole year
There are two ways to buy skipper liability cover. A single trip policy runs for one charter, typically a week or a fortnight, and is usually taken out when you book or shortly before you fly out. An annual policy covers every charter you skipper during the year. If you charter once a summer in Croatia or Greece, single trip cover is often enough. If you charter several times, it is worth pricing both.
An annual policy also helps when plans change at short notice: a friend asks you to take their boat across the Channel, a sailing club needs a skipper for a flotilla week, or you add an autumn trip in the Balearics. With annual cover you do not have to remember to arrange insurance before each trip. Check whether there is a maximum length per trip and which cruising areas the policy names.
How much does skipper insurance cost?
The price of skipper liability insurance depends mainly on three things: the limit of indemnity, the length of cover and any extras bundled into the policy, such as deposit insurance or cancellation cover. A policy for a single week costs less than an annual one, but two or three single trips in a year can end up more expensive than annual cover. When you compare quotes, compare the same limit, the same areas and the same period.
Before buying a separate policy, read the liability section of your own boat insurance if you own a yacht or motorboat. Some boat policies already extend to chartered vessels, often with conditions about the size of the charter yacht, the length of the trip and whose name is on the charter agreement. Ask your broker or insurer to confirm in writing what applies before you rely on it.
Comparing skipper liability policies: what to read in the wording
When comparing skipper liability insurance, the policy wording matters more than the brochure. Look at the limit of indemnity per claim and whether it is split between injury and property damage. Check whether claims from your own crew are covered, because friends and family on board are the people most likely to be hurt during a manoeuvre you ordered. Then check the cruising areas and any maximum trip length.
Two further points decide how useful the cover really is. Is recovery action by the charter company's hull insurer covered when damage was caused by gross negligence? That is where claims can go well beyond the deposit. And does the policy pay on an excess of loss basis, responding when no other liability cover does, and is there an excess you pay yourself? A cheap policy that leaves out these points can be expensive.
Professional skipper insurance for delivery and paid skippers
If you skipper for payment, as a delivery skipper, a hired skipper on a skippered charter, a sailing instructor or a flotilla lead, you need professional skipper insurance. Private skipper liability policies and the liability section of a private boat policy are written for leisure use and generally exclude skippering for reward. Many charter companies and agencies ask professional skippers to show their own cover before they take a job.
Professional cover has to answer different questions. Does it include financial loss, for example when a trip cannot go ahead because of your error? Does it cover liability towards paying guests and damage to the vessel you are in charge of? Agree in writing with the client or charter company which policies are in place for the boat and who pays the excess if something goes wrong. Your qualifications, such as a commercially endorsed RYA Yachtmaster, may also be a condition of cover.
ICC, RYA certificates and what the charter base checks
At check in the charter base will want to see a skipper qualification that suits the yacht and the area. In many Mediterranean countries that means the International Certificate of Competence or an RYA certificate such as Day Skipper or Coastal Skipper, plus a VHF operator's licence. Some bases also ask for a sailing CV and a crew list. Without the right papers you may be refused the boat or required to take a paid skipper.
Keep your skipper liability policy with those documents, printed or on your phone, so you can show it if the base asks. If something does happen, note the time, position, weather and who was involved, take photographs and ask the base for a signed damage report. Do not admit liability to a third party before you have spoken to your insurer. These steps protect you whichever policy you hold.
Worth remembering
The boat
is protected by the charter company’s policy
You
are protected by skipper liability cover
On a charter you are personally liable. The yacht’s policy was written for the owner, not for the skipper.
Questions
What owners ask us about this
Is skipper liability insurance compulsory?
In most charter areas the law does not require it, but some charter companies make it a condition of the contract. It is worth having either way, because the yacht’s own policy only protects you personally to a limited extent.
Does skipper liability insurance refund the deposit?
No. The deposit is your share of any hull damage, and that is what deposit insurance is for. Skipper liability responds to claims beyond the deposit and to damage caused to third parties.
Does my home liability insurance cover a charter yacht?
Usually not. Many personal liability policies exclude sailing and motor vessels, and damage to hired property is generally excluded as well. Read the wording before relying on it.
What is the limit for skipper liability with NAMMERT?
Liability as the responsible skipper is included in every tier, for hires of up to 30 days with the charter agreement in your name. On Basis Plus it is 10 million euros per claim, up to the size and power of your own boat; on Premium 20 million euros without a size limit, with up to 15 million for any one injured person. Both apply in Europe and the Mediterranean.
Can I buy skipper liability insurance for a single charter week?
Yes. Single trip policies are widely available and are usually taken out with the booking. If you charter more than once a year, compare the cost with an annual policy.
Does a private skipper policy cover paid skippering?
Usually not. Private policies are written for leisure use and generally exclude skippering for reward. Paid skippers need professional skipper insurance that includes this work.
Related
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