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4 Purchase Insurance

 

Property/Hull Insurance
 
The yacht owner is required to carry this before being listed with any reputable Central Agent. Likewise, the policy must be endorsed for charter, or any claim made for damages occurred during the charter would not be paid.
   
Liability Insurance
 
While the owner’s insurance will protect the yacht and crew, the charter principal could still be held responsible for damage caused by the yacht while undercharter, such as medical bills of a guest, damage to a dock or reef, etc, especially if chartering on the FYBA contract. Charterer’s Liability Insurance will cover this type of claim, up to the owner’s property/hull insurance deductible.
   
Trip Cancellation / Interruption Insurance  
Most of the contracts don’t make it easy to get a refund of any kind, and it gets more costly to cancel the closer to the charter date. For less than 5% of the charter fee, you can obtain full coverage in case of hurricane, illness, etc.
   
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