Chartering a bareboat sailing or motor yacht is a wonderful experience, but potential damages can become very expensive. A private liability insurance most likely doesn´t include claims arising from charter holidays. To protect yourself from major financial risks, it's wise to consider e.g. a charter skipper liability and/or a deposit insurance. These insurances cover repair costs, trip cancellations, and liability issues, ensuring a worry-free sailing adventure. In this article, we'll guide you through the top insurance options for skippers and crews, helping you choose the best coverage for your yacht charter journey.
What are the most crucial risks a charter skipper should insure against?
These are the three most important risks boat rental skippers and their crews are facing when renting a yacht for several days or weeks.
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Damage to the Boat: Covers repair costs if the yacht is damaged during your trip.
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Liability Issues: Protects against legal costs if someone gets injured or property is damaged.
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Trip Cancellation: Reimburses you if you have to cancel your trip due to illness.
Ensuring coverage for these risks provides peace of mind and financial protection during your yachting adventure.
Which are the typical yacht charter insurance packages?
(Professional) Skipper Liability Insurance: This covers liabilities not included in the boat's liability and hull insurance, such as claims from bodily injuries, property damage, and financial loss. For example, if the rented yacht hits a rock and the owner's insurance refuses the claim due to unpaid premiums, the skipper liability insurance steps in. It typically offers high coverage limits (up to €5 million), worldwide coverage, and can include regatta participation and commercial activities. Coverage for gross negligence, like improper navigation or drunkenness, is also crucial. Providers like Sealogy (former EIS), Schomacker, Yacht-Pool, and Pantaenius offer packages with varying coverage amounts, benefits, and insured periods, ranging from weekend rentals to 12 months. Please note that the coverage for comercial skippers (the ones that are getting paid) has a higher premium and is offered from some insurances only on request.
Deposit Insurance: Rental boat owners usually take a security deposit, to cover not insured damages the charterer might be doing. A Deposit Insurance protects the charterer from losing their security deposit in case of damage to the yacht. It generally covers partial damages, theft, and sometimes even loss due to negligence. Coverage amounts range up to €25,000, with providers like Sealogy (former EIS), Schomacker, Yacht-Pool, and Pantaenius offering competitive rates (typically 2-15% of the deposit amount) and varying conditions regarding excess and deductible.
Travel Cancellation Insurance: Travel Cancellation Insurance reimburses non-refundable charter costs if the trip is canceled due to unforeseen circumstances, such as severe illness or injuries. Coverage usually includes up to 100% of the booked travel costs. Some insurances even include unforseen events like termination of employment or a break-in or fire in your home which make a cancellation of the trip unavoidable. It includes all assigned members of the travel group. Costs range from 3-7% of the trip cost, and this insurance is offered by Sealogy, Schomacker, Yacht-Pool, and Pantaenius, each with specific terms regarding deductible and included events.
Charter Price Contingency Insurance: This insurance covers the loss of charter fees due to insolvency of the intermediary charter agency or in case the rented boat nor a replacement was provided by the charter base. Coverage amounts include rental fee and can also be extenden to flight costs, with premiums ranging from 2% until 9% of booked price. Sealogy, Schomacker and Pantaenius provide this insurance, with each offering slightly different terms and conditions tailored to common charter disruptions.
Which insurance companies offer what type of packages for bareboat yacht charter?
When you contract an insurance for your sailing or motorboat holiday it is important to compare conditions. There are different rental boat insurance packages that include varying benefits.
Here is a summary of the packages of yacht charter insurance providers:
| Insurance Package | Sealogy (former EIS Insurance) | Schomacker | Yacht-Pool | Pantaenius |
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| Skipper Third-Party Liability Insurance | Insures damages to the yacht not covered by the boats hull insurance and under gross negligence, claims among the crew, security deposit due to boat seizure of the yacht and charter loss claims. Premium starts from €65 up to €130 increasing with boat size, type and insured sum. Duration per trip. | Similar coverage like Sealogy with other limits. Restricted for EU residents + Norway (excl. Italians). Premium starts from €180 yearly. Also weekend rentals and 6 week durations available. | Insured liability risks similar as Sealogy and Schomaker. Regattas and comercial skippers/crew only on request. Yearly coverage of €5 Millions starts with premiums of €100 (sailboats) and €170 (motorboats). | Only for skippers which are residents in the EU or Switzerland. Starts with pure skippers liability from €21 per charter week for sailboats up to 15 meter length. Isured risks can be individually chosen on application form. Additional risks can be individually added on application form. Options for comercial skippers and regattas online available. |
| Deposit Insurance | It covers situations where the charter deposit is partially or fully withheld by the owner. 7-8% of deposit amount for single trips and 13-15% for fullyear durations. Regatta risks + 15%. The deductible is 10% of the deposit, at least 100 EUR. | Premium between 15% and 8.6% decreasing with rising deposit amount. Duration: trip-specific. Excluding following citizens: US, CA, RU or UA. | Protection for skipper and crew. Premiums, which cover a whole year start with 15.5% and lower down to 10.8% with rising deposit amounts. Excess of 5%, at least €50 of the deposit or the lower damage. | Deposits up to €20,000 online contractable. Insurance period: trip-specific. Premiums start with 10% of deposit amount and go down to 5% with rising deposit amounts. |
| Travel Cancellation Insurance | Covers up to 100% of travel costs, no deductible. Premium: 3-5% of booked travel costs. Duration: trip-specific or fullyear coverage selectable. | Deductible applicable. Premium: 5-8% of booked travel cost. Duration: trip-specific. For EU citizens except CY, SK and MT. | Deductible of 20% - also possible without deductible on request Premium: 4.7% of booked trip cost. Duration: trip-specific. Worldwide coverage. | Covers upt o 100% of charter, flight, transfer and hotel costs also pro-rata. Premium: 4-6% of booked trip cost when excluding deductible. Duration: trip-specific. |
| Charter Price Contingency | Covers loss of charter fee due to insolvency of charter company. Premium 2.1% of booked charter fee + €15 tax. Maximum insured charter fee is €5,000/week or €15,000 per trip. | Covers loss of charter fee due to insolvency of charter company. Premium 6-9% of booked charter fee. | Not offered. YachtPool offers a similar coverage through a so called "Sicherungschein" via acreditated charter companies. | Not offered. |
| Professional Skipper Liability | Covers also comercial skippers and crew members! Insures damages to the yacht not covered by the boats hull insurance and under gross negligence, claims among the crew, security deposit due to boat seizure of the yacht and charter loss claims. Premium from €230 per year increasing with boat size. | On request. | On request. | The liability package for comercial skippers starts from €248 up to €1,240 for the whole year. The premium rises with boat size and insured sum (€3,000,000-10,000,000) |
All information without liability. You can get more details directly from those companies:
Notes:
- Costs: Approximate and subject to change. Verify with the provider for precise rates.
- Duration: Annual coverage typically renews every year; trip-specific coverage is for the duration of the charter trip.
- Conditions: Coverage details, such as exclusions and specific terms, vary by provider and should be reviewed carefully on their respective websites.
Book your charter boat insurance online!
Only short time left before your charter starts? No problem, just book the desired bareboat charter insurance online. After payment, you will receive the policy directly to the specified email address, even shortly before the charter.
FAQ: Frequently asked questions regarding watercraft rental insurances
What is the difference between deposit insurance and skipper liability insurance?
The deposit insurance covers damages to the yacht caused by the charterer usually to the amount of the charter provider´s excess of the comprehensive insurance. Anything exceeding that might be covered by the owner´s insurance or not. A skipper liability insurance covers the potential blanks in the insurance of the charter yacht´s owner. It also includes damages to crew members and other boats that aren´t covered by the owner´s insurance.
What is the typical duration of these insurance policies?
Annual policies renew every year, while trip-specific policies cover the duration of the charter trip. Check with providers for precise terms.
What is a secured payment certificate?
The
secured payment certificate (in German called: "Sicherungsschein") is a guarantee that in case of insolvency of the charter provider the insurance company is able to refund your lost down payment. Some insurance companies offer separate insolvency or charter price contingency insurances.
What is Skipper Liability Insurance?
Skipper Liability Insurance covers legal liabilities arising from incidents caused by the skipper, such as bodily injury or property damage. It often includes worldwide coverage and participation in regattas. Coverage limits vary by provider but can reach up to €10 million.
What does Deposit Insurance cover?
Deposit Insurance protects against the loss of a security deposit due to damage, theft, or partial loss of the yacht. Coverage amounts range from €1,000 to €20,000 with costs typically around 7-15% of the deposit amount.
How does Travel Cancellation Insurance work?
Travel Cancellation Insurance reimburses non-refundable charter costs if the trip is canceled due to unforeseen circumstances, such as illness or severe weather. Coverage can go up to 100% of charter costs, and some providers include COVID-19 coverage.
What is Charter Price Contingency Insurance?
Charter Price Contingency Insurance covers the loss of charter fees due to insolvency of the charter company. Coverage typically goes up to €15,000.
Who needs Professional Skipper Liability Insurance?
Professional Skipper Liability Insurance is designed for skippers who operate yachts commercially. It covers legal liabilities arising from professional activities and incidents involving crew members, with coverage limits up to €10 million.
What is a Third-Party Liability Insurance?
A Third-Party Liability Insurance offers additional coverage beyond standard liability insurance. It includes protection for rental boats, water sports equipment, and might even include regatta participation (on request, with higher premiums).
How much does Skipper Liability Insurance cost?
The cost of Skipper Liability Insurance varies by provider and ranges from €21 to €65 per trip or €84 to €150 per year, depending on boat size, type and coverage limits.
Are there any deductibles for Deposit Insurance?
Some providers may have deductibles for Deposit Insurance, while others offer coverage with no excess. It's important to review the terms and conditions of each provider.
What factors affect the cost of Travel Cancellation Insurance?
The cost of Travel Cancellation Insurance range from 3% to 8% of the trip cost. Factors affecting the cost include the total trip cost, the provider's terms, and whether COVID-19 coverage is included.
Can I get coverage for regattas with Skipper Liability Insurance?
Yes, many providers offer Skipper Liability Insurance that includes coverage for participation in regattas. It is important to verify this specific inclusion with the chosen provider.
What happens if my yacht is damaged during the charter?
If your yacht is damaged, Deposit Insurance can cover the cost up to the insured amount. This helps you avoid losing your security deposit due to accidental damage.
Can I get insurance for my crew members?
Yes, Professional Skipper Liability Insurance often includes coverage for crew members, protecting against liabilities arising from professional activities.
Are there any exclusions in these insurance packages?
Exclusions vary by provider but may include pre-existing conditions, deliberate damage, or misuse of the yacht. Review each policy for specific exclusions.
Can I cancel my insurance policy if my trip gets canceled?
Most providers allow policy cancellation with a refund if the trip is canceled before the insurance start date. Check cancellation terms with your provider.
Do these insurances cover international charters?
Yes, many policies offer worldwide coverage, but it's essential to verify specific regions and conditions with your insurance provider.
Is there a difference between personal and professional skipper insurance?
Yes, personal insurance covers recreational activities, while professional insurance covers commercial operations and includes crew liability.
How do I file a claim if needed?
Claims can usually be filed online or through customer service. Required documents often include the charter contract, proof of damage, and any relevant receipts.
Are there any additional benefits with these insurance packages?
Additional benefits may include legal assistance, emergency services, and coverage for personal belongings. These vary by provider.
How do I choose the right insurance package for my needs?
Consider factors such as the type of yacht, sailing region, trip duration, and specific needs like regatta participation or professional use. Comparing providers and their offerings will help you select the best package.
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