Charter Insurance: Your Protection at Sea
Insurance is one of the most important — and least discussed — aspects of yacht chartering. Understanding what is covered, what is not, and what additional protection you should consider ensures peace of mind throughout your charter.
Yacht Insurance (Owner's Responsibility)
Under the MYBA charter contract, the yacht owner is required to maintain comprehensive insurance covering:
Hull and Machinery (H&M): Covers physical damage to the yacht itself — collision, grounding, fire, storm damage, and other perils. The sum insured reflects the yacht's full market value.
Protection and Indemnity (P&I): Covers third-party liabilities — injury to crew or guests, damage to other vessels or property, pollution, and wreck removal. P&I coverage typically runs to tens of millions of dollars.
Charter Liability: Specific coverage for liabilities arising from charter operations, including guest injury and property damage.
Lloyd's of London: The Gold Standard
At Bluebnc Yachting, all charters are insured through Lloyd's of London via Freeboard Maritime. Lloyd's is the world's leading insurance market, with over 300 years of history and an unmatched reputation for claims payment. Lloyd's insurance provides:
- The highest financial security ratings in the insurance industry
- Global coverage with no geographical limitations
- Specialist maritime expertise
- Proven claims handling and payment track record
What Charterers Should Know
Security deposit: Most charter contracts include a security deposit (typically €10,000–€50,000 depending on yacht size) to cover any damage caused by the charterer during the charter. This is returned at the end of the charter if no damage has occurred.
Personal travel insurance: We strongly recommend that all charterers take out personal travel insurance covering:
- Trip cancellation (protecting your charter fee if you need to cancel)
- Medical expenses (including emergency evacuation)
- Personal belongings
- Personal liability
Charter cancellation insurance: Available from specialist providers, this covers the loss of your charter fee if you need to cancel for covered reasons (illness, injury, bereavement, etc.). Given the significant sums involved in yacht chartering, this is a prudent investment.
Bluebnc's Insurance Standards
Every yacht in the Bluebnc charter fleet meets our strict insurance requirements:
- Full Hull and Machinery coverage
- P&I coverage to a minimum of $10 million
- Charter liability coverage
- All policies placed with A-rated insurers (primarily Lloyd's of London)
- Annual verification of insurance documentation
Your safety and financial protection are our highest priorities. If you have questions about charter insurance, our team is always available to advise.
