Insurance & Liability Guide
Understanding yacht charter insurance — what's covered, what's not, and how to protect yourself and your investment.
Yacht Insurance (Owner's Responsibility)
Every charter yacht must carry comprehensive insurance. Your broker verifies all documentation before the charter.
Hull & Machinery (H&M)
Covers physical damage to the yacht itself — collision, grounding, fire, storm damage, and mechanical breakdown. The yacht owner is required to maintain comprehensive H&M insurance, typically through Lloyd's of London or a specialist marine insurer.
Responsibility: OwnerProtection & Indemnity (P&I)
Third-party liability insurance covering injury to crew and passengers, damage to other vessels or property, pollution liability, and wreck removal. P&I cover is provided through specialist P&I clubs — mutual insurance associations of shipowners.
Responsibility: OwnerCrew Insurance
Covers medical expenses, repatriation, and compensation for crew members injured or taken ill during the charter. This is the owner's responsibility and is typically included in the P&I policy or as a separate crew cover.
Responsibility: OwnerPassenger Liability
Specific cover for injury or death of charter guests. Standard P&I policies include passenger liability, but limits vary. For superyachts, minimum cover of $5 million per passenger is standard, with many policies offering $10–50 million.
Responsibility: OwnerInsurance for Charterers
While the yacht is insured by the owner, we recommend charterers take additional cover for their own protection.
Charter Cancellation Insurance
RECOMMENDEDCovers the financial loss if you need to cancel your charter due to illness, injury, bereavement, or other covered events. Typically covers 100% of the charter fee and APA. Policies should be taken out at the time of booking, not later.
Travel Insurance
RECOMMENDEDComprehensive travel insurance covering medical expenses, emergency evacuation, baggage loss, and trip interruption. Essential for international charters where your domestic health insurance may not provide cover.
Personal Effects Cover
RECOMMENDEDCovers loss or damage to personal belongings brought aboard — jewellery, electronics, luggage, and sporting equipment. Standard yacht insurance does not cover guests' personal property.
Security Deposit Waiver
Some charter contracts include a security deposit (typically €10,000–€50,000) against damage to the yacht. A deposit waiver insurance policy covers this liability for a small premium.
Lloyd's of London Insured
All Bluebnc Yachting charter operations are insured through Lloyd's of London — the world's leading specialist insurance and reinsurance market. Founded in 1688, Lloyd's has been insuring maritime risks for over 335 years. Our Lloyd's policy provides comprehensive professional indemnity, errors & omissions, and public liability cover for all charter brokerage activities.
Frequently Asked Questions
Is the yacht insured during my charter?
Yes. The yacht owner is legally required to maintain comprehensive insurance including hull & machinery, P&I, crew cover, and passenger liability. Your broker will verify all insurance documentation before the charter.
Do I need my own insurance as a charterer?
While not legally required, we strongly recommend charter cancellation insurance and comprehensive travel insurance. The yacht's insurance covers the vessel and crew, but does not cover your personal belongings, medical expenses, or the financial loss of cancellation.
What happens if I damage the yacht?
Minor wear and tear is expected and covered by the yacht's insurance. For significant damage caused by negligence, the charterer may be liable for the insurance excess (deductible), which is typically stated in the charter contract. This is where security deposit waiver insurance can be valuable.
What if the yacht breaks down during my charter?
The owner is responsible for maintaining the yacht in seaworthy condition. If a mechanical failure prevents the charter from continuing, the contract typically provides for a pro-rata refund of unused charter days or a substitute vessel.
Does insurance cover bad weather cancellations?
Standard charter cancellation insurance does not cover weather-related cancellations. However, if the captain determines it is unsafe to sail, the itinerary will be adjusted — not cancelled. The yacht can shelter in a marina during storms, and the charter continues.
What about medical emergencies at sea?
All charter yachts carry first aid equipment and the crew are trained in emergency response. The captain will arrange evacuation to the nearest hospital if needed. Your travel insurance should cover medical expenses and emergency evacuation.