Yacht Insurance
Marinablu International Ltd
                           
All your boat, yacht and marine finance solutions in one place

 Yacht Charter Insurance

yacht insurance for luxury yachtsI'm sure you don't need me to tell you that owning and running a large yacht is an extremely expensive business, with yacht charter insurance probably a relatively small part of the overall annual running costs.

In much the same way as many of us aspire to owning a Ferrari or an Aston Martin, whilst we might struggle to buy one, the real cost is in keeping it on the road, or in our case, on the water. Many new yacht owners realise shortly after taking delivery of their new yacht, that the costs have only just started, and with most owners only using their boats for an average of 30 days a year, the thought of chartering comes to mind as an excellent way to generate some additional revenue to pay the maintenance costs and even to make a profit. In addition there's even the prospect of reclaiming some VAT, while we enjoy our yacht, so it seems like a great idea - or is it?

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Charter Yacht Insurance

Having purchased your yacht and decided that you would like to charter her out, then the first issue you will need to consider is that of your existing yacht insurance policy, which will certainly not cover you under the standard terms. The Maritime and Coastguard Agency which is responsible for UK legislation covering the registration and use of all UK vessels states the following :

" all UK vessels used for commercial gain such as charter yachts up to 24 metres load line length, which go to sea and carry no more than 12 passengers are required by law to comply with the Maritime and Coastguard Agency Small Commercial Vessel and Pilot Boat code and be issued with Certificates by an authorised Certifying authority.

The key point in the above is in operating your vessel for gain, your yacht is now considered a commercial boat, and therefore your insurance policy will almost certainly have been issued on a pleasure use basis only, and not for commercial use which will be excluded, and as such you will need charter yacht insurance. The above code covers a variety of types of yachts and boats including sailing charter, both skippered and bareboat, commercial charter including angling and dive boats, RIB's, workboats and pilot boats. As you would expect the code has been developed in order to provide protection to both crew and passengers alike.

So how will a yacht charter insurance policy differ from your existing luxury yacht insurance? - the answer is not a  great deal - the underwriters will still require much the same information as before, however in addition they will require much greater detail about the proposed crew and their experience, details of key safety equipment such as fire extinguishers etc, and most importantly they will require sight of the MCA coding for your yacht - what's that? Well in addition to specialist yacht insurance you will have to prepare your yacht so that is has the relevant licence to work commercially. 

Let's look at MCA coding and the procedure and process in order to prepare your yacht for chartering.

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Marinablu International Ltd is an Introducer Appointed Representative of  Pantaenius UK Ltd who are authorised and regulated by the Financial Services Authority (FSA)  - pantaenius yacht insurance