Insurance & Risk guides

Who insures what on a charter

Three insurance layers meet on every charter: the yacht's owner maintains hull and liability cover; you carry a charter-specific policy for cancellation and personal medical; and bareboat charters otherwise demand a refundable security deposit (typically $5,000–$15,000) that covers the hull deductible. Trading the deposit for a damage-waiver or excess-reduction fee ($300–$700/week) caps your exposure.

None of the three replaces another. The owner's policy protects the owner. The waiver protects you against the hull excess only. Your travel or charter policy covers the risks neither of them touches: cancellation, medical, evacuation, and the personal liability that follows an accident ashore.

The line items

Cover	Typical cost	What it actually does
Charter cancellation policy	3–5% of charter cost	Illness, weather disruption, airline failure
Damage waiver (bareboat)	$300–$700/week	Caps hull excess; skip it and you hold the deposit
Excess insurance (charter)	~7–10% of the deductible	Covers the gap a deposit leaves exposed
Yachtsmen's travel insurance	Premium varies by age and itinerary	Medical, evacuation, watersports rider
Owner-side hull policy	Not your cost	Ask which watersports it excludes

Read exclusions before paying. Owner policies frequently exclude personal watercraft (e-tenders, e-foils, dinghies over a certain length) and organised yacht racing. Travel policies vary on "watersports" — jet skiing may need a rider, and scuba diving below a stated depth is commonly excluded.

The three policies a charterer can actually buy

Cancellation cover. Bought at booking, priced at 3–5% of the charter fee. It pays when you cannot travel, not when you decide not to. Pre-existing medical conditions need declaring, and named-storm clauses in the charter contract usually run parallel to, not inside, this cover.

Damage waiver or excess reduction. Sold by the fleet, not an insurer. It reduces your liability for hull damage to a smaller excess — commonly $500–$3,000 instead of the full deposit — but it almost never covers the tender, outboard, sails or rig. On a $6,000 week, a $500 waiver is just over 8% of the hire.

Travel and medical cover with a watersports rider. The one policy that follows you off the boat. Check the evacuation limit, the repatriation terms and whether the insurer treats a chartered yacht as "commercial transport" — some exclude sailing altogether unless the skipper is licensed.

Exclusions that void claims

• An undeclared pre-existing condition on cancellation cover.
• Sailing outside the cruising area named in the contract — insurers price the itinerary, not the boat.
• Single-handed sailing or night passages when the policy requires two crew.
• Damage from racing, commercial use or towing another vessel.
• Alcohol-related incidents, which most marine policies exclude outright.
• Equipment the owner excluded: e-foils, jet skis, and tenders above the stated length.

After an incident, in order

1. Make the vessel and people safe first; call the coastguard if there is any doubt.
2. Notify the base or captain the same day — most contracts require immediate notice.
3. Photograph damage before anything is repaired or moved.
4. Record names, insurance details and contact information for any third party.
5. Get the repair estimate in writing before the deposit is reconciled.
6. File the claim with your own insurer inside the window stated in the policy.

The charter insurance guide breaks the deposit and waiver mechanics down line by line, the insurance hub collects the related guides, and the logistics hub covers where the certificate sits in the contract pack.

Is the security deposit refundable?

Yes, minus damage attributable to your group. The base reconciles it after the return inspection, typically within 7–14 days. Ask for the inspection checklist at handover, not at return.

Does travel insurance cover a yacht charter?

Standard policies often carry watersports exclusions or depth limits. A yachtsmen-specific policy is the safer buy at the trip-planning stage, before the balance is due.

Is the damage waiver worth it?

On a bareboat with a $10,000 deposit, yes for most charterers: $300–$700 buys down an exposure you would otherwise carry in full. Read what it excludes before you decide — the tender and sails are the usual gaps.

What the certificate should say

Ask for the certificate, not a summary. It should name the insured party, the vessel, the cruising area, the deductible, and the third-party liability limit. On a crewed charter the certificate is the owner's; on a bareboat it is the fleet's policy, and your damage waiver sits alongside it rather than replacing it.

Check three fields against your itinerary: the cruising area must include every country you plan to touch, the liability limit should be at least a few million euros or dollars, and the deductible should match the deposit you are being asked to leave. A certificate that lists a narrower cruising area than the route is the most common reason a claim is refused.