Everything You Need To Know About Yacht Charter Insurance
As you imagine relaxing into a sun lounger while sipping champagne against an idyllic ocean backdrop of a luxury yacht charter, it can be easy to overlook the practicalities associated with the booking process. At IYC, we understand that your peace of mind is as crucial as the yacht choice. This is why we have partnered with Yonder Travel Insurance. As the premier comparison tool for all types of travel insurance, including yacht charters, Yonder Travel Insurance ensures that you are fully protected when it comes to your yachting vacation. It compares, sorts, and filters a wide range of insurance policies from all the major, trusted providers.
A luxury yacht charter - while an unmatched vacation - also comes with multiple moving parts and may be susceptible to unexpected changes. While you count down the days of your trip, there could be unforeseen issues that threaten to jeopardize your vacation - perhaps a family emergency or an unplanned work obligation. While unpleasant, these scenarios are exactly why we recommend you take out a comprehensive yacht charter insurance policy. Insurance policies act as your valuable safety net, protecting your substantial investment and offering help if and when you may need it most.
Here we outline some of the frequently asked questions when it comes to the yacht charter insurance process:
What Does A Yacht Charter Insurance Policy Typically Cover?
Most policies offered through our partnership with Yonder are built on three fundamental pillars of coverage. The first is ‘Trip Cancellation and Interruption,’ this is your buffer against the unexpected. Whether it’s an illness in the family, a work emergency, or a severe weather event at your home or destination, this coverage will protect you if you need to cancel or cut your charter short. ‘Medical Expenses and Evacuation’ is second; if you fall ill or suffer an injury during your yacht charter, this coverage ensures you receive care without medical bills. In severe cases, it can cover the cost of medical evacuation, potentially a life-saving benefit while cruising.
Many policies offer a waiver for certain pre-existing conditions but typically require purchasing the insurance shortly after the trip deposit (1-21 days). Finally, the policies will also cover ‘Travel Loss and Delay,’ from missed flight connections to lost luggage; this coverage reimburses you for any unforeseen travel issues and expenses.
How Much Does Yacht Charter Insurance Cost?
Coverage is more affordable than you may initially think. On average, you will likely pay between 4-8% of the total charter cost. This investment is a simple decision considering the potential larger financial implications of a medical emergency or last-minute cancellation.
Similar to the charter cost, the prices can vary; this will depend on the exact policies and providers. Various factors, such as the age of the charter client, the number of people in a charter group, whether there are children, the total charter cost, and any additional coverage options you may select, will influence the premium.
When Should I Purchase Yacht Charter Insurance?
The earlier, the better. We recommend securing your coverage through us and Yonder as soon as you make non-refundable payments towards your charter booking. This approach provides immediate protection and also opens access to other time-sensitive benefits. For example, the ‘Cancel For Any Reason’ (CFAR) upgrade is a flexible option allowing you to recoup up to 75% of trip expenses if you decide to cancel for any reason not covered by standard policies. However, this must be purchased within 1-21 days of the initial trip deposit.
What Is The ‘Cancel For Any Reason’ (CFAR) Coverage?
CFAR is an optional upgrade that gives you the ultimate flexibility. While standard policies cover a wide range of scenarios, they do not account for every possibility. CFAR bridges this gap and allows you to cancel for any reason up to 48 hours before the intended departure. However, this does come at a premium, typically increasing your insurance cost to 8-15% of the charter value. For those seeking maximum flexibility, it is an option worth considering.
Is There A Limit To The Charter Cost I Can Insure?
While some policies impose per-person limits, Yonder Travel Insurance facilitates ones that allow you to benefit from specialized charter policies without such restrictions. They have previously covered charters valued at over $1 million, ensuring that these large investments receive the best coverage.
Do I Need Extra Coverage For Luggage?
If you are traveling with expensive or unique items, such as jewelry, baggage insurance can provide additional coverage for these items. Many standard policies have limitations on high-value items, so outline these while arranging your specific policy to ensure you have adequate coverage for your specific luggage needs. Your consultant and the team at Yonder can make the policy limits and exclusions clear to you before purchasing so you understand exactly what is covered.
Will The Yacht Charter Insurance Cover Watersports And Activities?
Many standard policies cover basic water activities, but coverage for more adventurous activities like scuba diving may require supplementary coverage. When discussing your charter plans with your consultant, be sure to mention any specific activities you're planning so the selected policy provides appropriate coverage for these.
Does The Yacht Charter Insurance Cover Damage To the Yacht?
Generally, yacht charter insurance is designed to protect your charter investment rather than the yacht itself. However, accidents may happen, so an additional product, namely ‘Charter Liability’ insurance, will cover situations where charter guests may be liable for any damage caused to the charter yacht. As guests, you may be covered under the yacht owner’s liability policy, but this extra coverage allows you to relax completely. To learn more about these policies, contact your consultant.
What Kind Of Support Can I Expect?
All insurance plans through Yonder Travel Insurance come with 24/7 emergency assistance services. Expert support is always available if you have a question or need guidance on filing a claim. In addition to Yonder’s service, our consultants at IYC are always on hand to guide you through any concerns you may have throughout the entire charter process.
While these points provide a general overview, each insurance policy and provider is unique and tailored to specific needs and circumstances - just like the yacht charter itself. We recommend discussing your specific needs with your IYC consultant, who can guide you through the process of selecting the perfect coverage and arranging an insurance quote for your luxury yacht charter.