Yacht hire insurance
Yacht hire insurance would generally be of two types. One is the insurance for the vessel and the passenger/s when bareboat hiring is arranged.
The other type of insurance would cover the passengers, the vessel, and the crew members, when a crewed yacht is chartered. In general, yachts below the length of 20 meters would be self-owned and without any crew. As such, it is up to the owners to insure the yacht and themselves. However, yachts and boats above 20 meters length would usually be owned by yacht hiring or chartering companies, with their own crew. In such cases, the yacht charterer would be required to provide the crew with comprehensive health insurance and liability insurance.
The crew insurance would depend on the type of the yacht and its usage. If the yachts are used for one or two days chartering, then the crew insurance costs would be lower. On the other hand, if the yacht charterer hires the yachts for long-term cruising, the insurance costs would be significantly higher, since the yachts would be on sea for several days on each occasion, thus increasing the risk. Further, if the yacht cruising charter arrangements include visits to several foreign countries, then the insurance company might insist on a worldwide insurance coverage. This would be needed to meet the costs of repatriation of the crew member/s in case of serious illness or death.
Normally, the following items would be covered in yacht hire insurance in most of the countries.
Apart from this, the yacht charterer would also be required to bear the yacht hire insurance for any damage or loss of the yacht in the sea or while on a port. This insurance coverage would depend on the type and size of the yacht or the boat. Moreover, the yacht chartering company could opt for additional coverages for the crew to extend the cover to life insurance of the crew and their family members, temporary or permanent disability benefits, sick pay, loss of wages, etc. However, the yacht chartering companies would pass on these yacht hire insurance costs proportionately to the people who charter the yachts on an even basis that the costs are fully recovered by the charter agreements every year.
- Hospital and medical expenses of the crew members while on board and the traveling period to and from the yacht
- Repatriation coverage for injured or ill crew members
- Transportation coverage costs for relief or replacement of the crew members
- Vaccination costs that would be required before the sailing period
- Travel costs of the crew members who could be forced to return home due to serious personal problems
- Coverage costs for death, loss of equipment, and loss of goods
When the yacht is chartered on a bareboat basis, then the insurance of the yacht, the passengers, and the crew, if any, would normally vest with the person chartering the yacht. Since any sailing always bears an element of risk, it would not be wise to venture into the sea without adequate yacht hire insurance. Trying to save on this minor cost could result in a major financial loss later.
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