Basically, all charter bases insure the yachts of their fleets with both third-party liability insurance and hull insurance. The liability insurance covers damages to other boats, port facilities or strangers. The hull comprehensive insurance covers damages of the chartered yacht, and there is always a deductible. For this amount of deductible that is not covered by the hull insurance, the charterer is requested to pay a security deposit which will be retained until the end of the charter and refunded if no damages occurred. In some cases, the charter companies offer their own insurance with a “damage waiver”: Buying the non-refundable damage waiver, the charterer pays less refundable deposit. But with most charter bases, deposit insurance with an insurance company is recommended.
Charter deposit insurance is covered in the partial or total withholding of the charter deposit by the owner/charterer due to loss or damage caused by the private policyholder or the crew.
