Yacht Charter Insurance

A Complete Guide to Stress-Free Sailing

Sailing is one of the most exciting and rewarding ways to explore the world—but it also comes with certain risks. The sea is unpredictable, charter boats are valuable, and unforeseen events can quickly disrupt your plans. To safeguard your trip and finances, specialized yacht charter insurance is a must. This guide outlines the key types of insurance every sailor should consider before setting sail. But first, let’s cover the most important policy of all:

1. Personal Travel & Medical Insurance (Your Safety Net)

Before diving into yacht-specific policies, make sure your travel and medical insurance includes coverage for water-based activities. Sailing isn’t classified as an extreme sport, but insurers may still exclude “marine activities” unless specifically listed. Ensure your policy includes:

• Emergency medical treatment and evacuation
• Adventure or water sports coverage, if required

2. Travel Cancellation Insurance (When Plans Go Overboard)

Why it’s essential:

Most charter companies have strict cancellation terms—your deposit is often non-refundable. While some may allow rescheduling with additional fees, this is rarely possible for last-minute cancellations. That’s why Travel Cancellation Insurance is highly recommended. It may reimburse you for non-refundable expenses such as:

• Boat rental fees
• Flights
• Accommodation

🕒 Important: This insurance must be purchased before your final charter payment is made. Cost estimate: ~10% of your total trip expenses.

👉 For available options, visit our Insurance Page

3. Damage Deposit Insurance (Protecting Your Security Deposit)

What it covers:

Most charter companies require a refundable security deposit, typically held on your credit card or in cash (especially in Greece). This protects the operator in case of:

• Minor damages (e.g., scratches, torn sails, dinghy)
• Loss or breakage of equipment (e.g., anchor, outboard engine)

Why you might need it:

• Avoid disputes over liability (e.g., was the damage pre-existing?)
• Prevent large out-of-pocket expenses (some deposits exceed $5,000)

Ways to minimize risk:

1. Perform a detailed check-in/check-out inspection. Check our step by step boat handover procedure recommendations.
2. Purchase a Collision Damage Waiver (CDW) to reduce your liability. This option is available for the most charters in Croatia and Mallorca.
3. Insure your damage deposit—usually ~10% of the deposit value. Note: Most policies do not cover damage caused by negligence, intoxication, torn sails, or dinghy loss.

👉 Check recommended providers here: 12 Knots Insurance options

4. Skipper Liability Insurance (Avoiding Financial Ruin)

The issue:

The yacht's third-party liability insurance (usually $1M–$3M) protects the owner, not you. If you cause damage or injury, you could be held personally responsible.

What could go wrong?

• Damaging a high-value vessel (e.g., $10M superyacht)
• Causing environmental harm (e.g., fuel spills)
• Injuring someone onboard or nearby

The solution:

Extended Skipper Liability Insurance provides:

• Legal defense and assistance
• Pollution fines coverage
• Protection even if the yacht’s main policy lapses

Cost: From $100/week—a small price for peace of mind.

Final Advice: Sail Smart, Sail Safe

While insurance greatly reduces your risk, responsible sailing is your best defense:

• Thoroughly inspect the yacht and document pre-existing damage
• Never sail under the influence—coverage may be void
• Monitor weather conditions and avoid dangerous routes

For more information or to explore tailored insurance packages, visit: 12Knots Insurance Options

Fair winds and smooth sailing! ⛵