Insurance and your charter

IS TRAVEL INSURANCE RIGHT FOR YOU?

 Although some people feel insurance is a matter of temperament, there are a few things to consider about a yacht charter and insurance. Depending on the charter contract you sign (did you read it?), you may be responsible for just the deposit you paid to reserve the yacht or the amount of the entire charter fee (although not any expenses unless you cancel so close to your charter date that the yacht has already repositioned and provisioned for your arrival).

 Your charter contract is for a specific period of time so if you have transportation delays reaching your yacht, insurance coverage steps in – this might matter during the winter months if you are traveling from a snowy climate. The same is true if you need to postpone or end your trip early if you book a charter during hurricane season ( July through October in the Caribbean). In charter agreements where you are in control of the yacht, you may feel that you wish to purchase charterer’s liability insurance to make sure that you have absolutely no exposure if you are a High Net Worth Individual.

 Some commonplace issues can be: your parents are elderly and not in good health – you could be called home unexpectedly due to severe illness or death of a family member. The same is true if you have young children or you could have a health problem while traveling on your vacation.

 Keep in mind that most policies will waive pre-existing conditions if you purchase coverage within 48 hours of confirming your charter. All of these types of insurance coverage is provided by independent insurance carriers and you should compare the costs and coverage of different policies.

 Trip Cancellation Insurance:

 Protection if unable to travel due to illness or trip is cut short because of it. In many cases the full cost of the trip would be refundable by the insurance company, consider insurance any non-refundable airline ticket amount as well.

 Trip Interruption:

 Protects you once the trip is underway. Example: When changing flights and the first flight is late meaning a missed connection and a night in a hotel is needed. Additional costs to reach your destination are reimbursed up to the policy amount.

 Medical Coverage:

 Provides cover or assistance if you get sick or are injured while out of the country and can cover your medical expenses in hospitals or clinics overseas.

 Yacht Charter Cancellation Insurance:

This policy is designed to indemnify the charterer for the ascertained net loss (irrecoverable deposits or charges) should a pre-arranged charter be cancelled or abandoned prior to the completion of the charter.

Charterers Liability Insurance:

A policy designed to protect the charterer for his/her legal liability during the period of the charter.  It covers third party liability and physical damage for losses or damages, including injury, for which the charterer is held legally liable.  Some yacht policies do not extend to include the liability of the charterer.  Even if they do, we find that most charter clients do not want to rely solely on the yacht owner’s policy to defend them and want broader protection by also having their own policy. 

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