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Yacht charter insurance: which covers do you need as a charterer?
Short answer
Yacht charter insurance is not one policy but a set of separate covers for the skipper and crew.
The charter yacht is normally insured, but for the charter company.
The deposit, your personal liability and the cost of the trip stay with you as the charterer.
Most charter contracts say the yacht is fully insured, and normally it is: the charter company carries third party and usually hull cover on its boat. Both policies are there to protect the company and the vessel. The hull excess is passed on to you through the deposit, and your personal liability as skipper, the cost of the holiday and the crew's belongings are not what that policy is for. So yacht charter insurance is not a single product but the name for the covers a skipper and crew buy to fill those gaps, whether you sail from the Solent, the Ionian or the Caribbean.
Six covers come up again and again. Skipper liability insurance responds when you, as the person in charge, cause damage or injury to others. Deposit insurance refunds the amount the base keeps after damage to the yacht. Loss of hire cover applies when the charter company also claims for the next charter it could not run. Cancellation cover pays the charter cost if you have to pull out for an insured reason. Personal accident cover pays an agreed sum after an accident on board, regardless of fault. And the crew's own belongings usually belong under home contents or travel insurance, not the yacht's policy. Each cover has its own page with the detail.
Before comparing, look at what you already hold. Read the charter agreement, note the deposit and check existing policies: many home insurance liability sections exclude boats, while a policy on a boat you own may include skipper liability for chartered yachts. With NAMMERT it is included in every tier, for up to 30 days with the charter agreement in your name; from Basis Plus up to the size of your own boat, in Premium without a size limit. Then compare like with like: the limit of indemnity, whether the deposit cover matches the full deposit, the cruising area, the longest trip allowed, and whether the cover runs for one charter or a full year. Some bases also ask for an ICC or RYA certificate, which has nothing to do with insurance but belongs on the same checklist.
Worth remembering
The charter yacht
is insured by the charter company for itself
Skipper and crew
insure the deposit, liability and trip themselves
An insured charter yacht does not mean you are insured. Charter insurance is a set of covers you choose.
Questions
What owners ask us about this
What is yacht charter insurance?
A collective name for the covers a skipper and crew take out themselves for a charter: skipper liability, deposit insurance, loss of hire, cancellation, personal accident and cover for personal belongings. They are sold separately or as a bundle.
Isn't the charter yacht already insured?
Normally yes, with third party and usually hull cover held by the charter company. Those policies protect the owner and the boat. The deposit, your personal liability as skipper and the cost of the trip remain your responsibility.
How do I compare charter insurance quotes?
Put the same covers with the same limits side by side: does the deposit cover match the full deposit, what is the skipper liability limit, which cruising area and how many days are included. A cheap bundle helps little if a cover you need is missing.
Related
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Whether it is “Yacht charter insurance: which covers do you need as a charterer?” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
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