Yacht Insurance Basics
Start your yacht charter well-protected without concern!
Is my yacht insured?
Every yacht listed has full insurance. Charter agencies have comprehensive insurance with an excess. The deposit that the charterer has to pay usually amounts to that excess. A deposit insurance protects you from the loss of the deposit. Ensure that the dinghy and the outboard motor are included as well.
You have to pay a deposit before a yacht charter (which is refundable in case there is no damage upon return) against damages that may arise. In case of an accident or damage, the cost of this damage is kept and paid by the deposit.
What are the deposit and deposit insurance?
The Refundable Security Deposit guarantees the coverage of any potential damage done to the boat, and it will be pre-authorised on your credit card. Check your credit card limits before the charter if you will use your card for your insurance payments. Whether it’s a sail breaking, the yacht gets a few scratches, or the slightest damage after your return from the dream vacation, the owner will partly or wholly retain this deposit. In this case, you are protected by Deposit Insurance.
The Refundable Security Deposit for a recreational sailing yacht is typically around Eur 2000. However, you may be offered Deposit Insurance of around Eur 300 payable before your charter (sometimes at least one day). If an accident happens, the charter company will not return your Deposit Insurance. Depending on the severity of the accident and the insurance terms, the charter company will resolve the issue, and you don’t have to do anything else.
Accidents that Deposit Insurance may not cover:
Most insurance policies have exceptions – for example, toilet clogging or the loss of a dinghy or fender. In rare cases, generators or sails are excluded. If these items are not included in your insurance, you must check them thoroughly before charter. The insurance company will not cover gross negligence, steering of the vessel without authorization or being under the influence of alcohol or drugs. Accidents during good weather will be investigated.
You can insure for gross negligence damages with a year-long skipper insurance. Ensure that your skipper’s license is valid for your charter yacht and the charter location.
It is advisable to cover the financial risks of a yacht charter with a deposit insurance and a charter skipper liability insurance.