Crew is ready, all the important things are packed and weather looks heavenly. Everybody is excited for the adventure on sea and no-one wants to think about possible accidents. How to shush that tiny voice in your head and cover every angle? Read more on how does yacht insurance work and how to choose the best option.
Insurance for boat is important. After all, you will be operating a mobile vehicle on sea waves. Imagine driving a car without an insurance – nonsense! When renting a boat, you will put down security deposit. In most cases, charter company will relieve you of the obligation to lodge the entire deposit or reduce it to a smaller ammount. Check ahead with the charter for the final sum of deposit, so you can have the necessary cash or card allowance.
Basics of deposit insurance
Here’s an example: Standard refundable security deposit for a recreational sailing yacht is 2000 EUR. However, the charter company can offer a deposit insurance of 300 EUR that you will pay ahead of your trip. If an accident occurs, the charter company will not return the deposti insurance to you. (Silver lining being – it is only 300 EUR instead of 2000 EUR.) Depending on the severity of the accident and on terms and conditions of insurance, charter company will resolve the issue on its own and you don’t have to do anything else.
Watch out: Some charter companies require payment of deposit insurance in advance, at least one day before the boat pick-up.
If you sail more than once a year, it is reasonable to purchase yearly deposit insurance, e.g. via Yacht-Pool. Insurance for 12 months tends to equal the one-time deposit insurance at the charter company. The insurance applies to multiple sailing holidays throughout the year. You still have to pay the refundable security deposit at the boat pick-up, but in case of accident, you solve the claim directly with the insurance company.
Word to the wise: It’s best to ask about the coinsurance policy when you pay insurance. Standard is about 5-10%.
Accidents deposit insurance doesn’t cover
Most insurance policies have exceptions – for example, toilet clogging and loss of either fender or dinghy. In rare cases, generator or sails are excluded. If these items are not included in your insurance, you need to check them thoroughly at the boat pick-up.
Gross negligence and steering of the vessel without a necessary authorization or under the influence of alcohol do not fall under the insurance benefit, meaning that insurance company will not refund such events. It’s also good to know that an accident that happened during good weather will be investigated. Some insurance companies look at the details of the claim and in case of suspicion of negligence you won’t be refunded for the insured event.
You can insure for gross negligence damages with year-long skipper insurance. Yearly subscribtion of 100 EUR should be enough for recreational sailing yachts. Skipper insurance applies not only to the captain, but also to all people officially on board and registered in the crew list. But beware! If you have a license that isn’t valid for your boat or the location of the trip, insurance claim won’t go through.
Who provides the insurance?
In some cases, charter company offers a third-party insurance. You still have to pay the refundable security deposit for renting a boat, but in event of claim, you are also obliged to resolve the claim directly with the insurance company.
Are you charging the refundable security deposit to your card? We recommend checking your charge and withdrawal limits with the bank prior to the trip.
If you book a boat through an agency, they should have access to this information and provide you with it. Boataround verifies all insurance options with partners and assists clients with their choice.