This article is part of a charter special. The contents:
A common misconception is that personal liability insurance also covers personal injury or property damage caused by a skipper. This is not the case. There is boat liability insurance for your own boat. But what do you do if you want to charter a yacht for a holiday cruise? Then skipper's liability insurance can help.
Skipper liability
As a rule, the chartered yacht should have its own liability and hull insurance. In the event of liability, this means that damage to third parties caused by use of the boat is first reported to the yacht's liability insurance.
However, especially when chartering abroad, it is not always possible to determine whether the charter company has taken out a boat liability or hull insurance policy for the rented boat, how high the cover is and whether the premiums have been paid on time. In short, the skipper sometimes does not know whether there is sufficient insurance cover.
If not, he is liable with his private assets in the event of damage. The skipper's liability insurance also protects him against this. It covers claims made against the skipper by injured crew members and third parties.
In the case of liability towards third parties, however, there is only so-called subsidiary cover. This means that the insurer will only pay benefits if there is no other insurer who is liable to cover the damage. When selecting an insurance policy, it is important to check whether the insurance cover also applies to crew members under the respective insurance conditions.
Under certain circumstances, skipper liability may also apply in the event of damage to the chartered ship if the skipper or crew is accused of gross negligence.
Gross negligence" refers to damage to the chartered ship, not to third parties. Damage to the chartered vessel is initially excluded under the skipper's liability insurance. This is covered by the yacht's hull insurance or the deposit paid by the skipper (usually the excess of the hull insurance). The skipper can insure the deposit with the deposit insurance. If the hull insurance refuses due to "gross negligence", then the skipper's liability insurance takes effect if no other insurance takes effect.
By the way: Owners who take out a liability policy for their boat can benefit from free skipper liability cover with many insurance companies.
Receivables and charter default cover, confiscation
If the ship is not available for the next crew after the cruise due to damage for which the sailors are responsible, the charter company will demand compensation. Claims or charter cancellation cover protects against this. It is sometimes included in the skipper's liability insurance, sometimes only available for an additional premium. The same applies to confiscation insurance.
Bond insurance
It is not uncommon for a dispute to arise during a holiday cruise if a fellow sailor damages the boat or equipment. Then everyone's deposit is lost. To prevent this, the crew can take out appropriate deposit insurance before the start of the trip.
Security deposit insurance is available from various providers. It is often limited to a specific cruise. If you charter more frequently, it may be cheaper to take out an annual contract.
Insurer or fleet operator: who has the better offer?
Bond insurance policies from established insurance brokers and intermediaries are often cheaper than those offered by fleet operators. This is particularly true for cruises lasting two weeks or more. The reason: insurers work with flat rates. Some fleet operators, on the other hand, charge per charter day or week. So compare prices! The other way round: with an insurer's policy, the full deposit must be paid to the charter company on site; in the event of a claim, it will then be refunded, usually a few weeks after the trip. With the fleet operator's offer, on the other hand, the deposit to be paid is reduced to the amount of a lower excess.
Deductible: Caution, trap!
In addition to the premium for the security deposit cover, the customer also has to pay the excess in the event of a claim. With insurers, this is usually between zero and around 150 euros or five per cent of the deposit amount. For fleet operators, it is often up to 500 euros or more!
Pay attention to exclusions
In some cases, the dinghy, outboard motor or even "all mobile equipment" such as binoculars or handheld radios are not insured. Therefore, read the terms and conditions. A defective or stolen dinghy including outboard motor (e.g. in the Caribbean) can quickly cost the crew up to 2,000 euros!
Compare terms
Most deposit insurance policies only cover the booked trip. However, there are some that are valid for a whole year - attractive for anyone who charters frequently. However, such an annual policy must be cancelled, otherwise it is automatically renewed.
Stay incognito
If you have taken out bonding insurance, do not tell the base crew. Otherwise, sometimes minor damage is billed at a high price - the crew is insured.
Travel cancellation insurance
You need a travel cancellation policy if you book well in advance or want to go on a trip with a large crew. In the charter sector, it particularly protects against the skipper cancelling and not being able to be replaced, so that the entire trip has to be cancelled, whether before the start or during the trip. If an individual crew member cancels, the insurance covers their share of the travel costs. Some providers also cover the insolvency of the provider.
Travel health insurance
Finally, charter sailors who are covered by statutory health insurance should also take out health insurance when travelling abroad. Private health insurance policies often already include cover abroad.
In the EU, charter sailors can also use their health insurance card; the EU insurance card is on the back of the German card. This card can be used to go to the doctor abroad, and the health insurance fund will cover services in an emergency; however, this does not usually include services that are subject to co-payment or repatriation in the event of serious illness!
Some sailors also have other travel health insurance policies, even with repatriation via an ADAC membership or credit cards. Everyone should check this for themselves.
In general, it is important to determine your own needs very precisely and then compare prices. Some insurers offer various charter insurance policies as complete packages, while other providers offer each policy individually.
Accident insurance
If you want to take out accident insurance, you should enquire beforehand whether your family already has appropriate cover. Otherwise, it may be advisable to take out accident insurance specifically for the charter cruise.
