As with many other travel cancellation insurances, a yacht charter cancellation plan is not mandatory. It differs from Travel Insurance, which provides international medical insurance coverage for when you are traveling abroad, outside of your home country.
If you’re planning to go on a yacht charter trip, it’s crucial to protect yourself financially in the event of a cancellation. One way to do this is by purchasing yacht charter cancellation insurance. However, it’s essential to understand what costs are included in your policy.
What is yacht charter cancellation insurance?
Yacht charter cancellation insurance is a type of insurance policy that provides financial protection in the event that you need to cancel your yacht charter due to unforeseen circumstances. This type of insurance is designed to cover the costs of the charter, including any deposits or prepayments that you may have made.
By choosing a comprehensive yacht charter cancellation insurance policy, you can have up to 100% of your trip value covered including charter fee, VAT and APA. This means that if you’re unable to go on your trip due to an unforeseen event, you can receive a full refund. It’s important to read the policy carefully to ensure that you fully understand the coverage and conditions before making a purchase.
Why is yacht charter cancellation insurance important?
Yacht charter cancellation insurance is important because it provides financial protection in the event that you need to cancel your charter due to unforeseen circumstances. For example, if you become ill or injured before your charter, or if there is a natural disaster that prevents you from traveling to your destination, your yacht charter cancellation insurance policy can help to cover the costs of the charter.
What kind of events are usually excluded?
When purchasing yacht charter cancellation insurance, it’s important to carefully read and understand the policy’s conditions, including the exclusions.
Excluded events for trip cancellation insurances can vary from one contract to another.
Force Majeure Events:
Most yacht charter cancellation insurance policies exclude certain events classified as force majeure. These events include war and warlike events such as political unrest or terrorist acts. Policies usually also exclude strikes, lockouts, and events resulting from acts of governments. Other exlusions includes: cancellation due to radioactivity, biochemicals, or pandemics. It’s crucial to understand these exclusions to avoid any misunderstandings or disputes later on.
Exclusions Due to Gross Negligence or Behaviors of the Policyholder
It’s also important to note that policies can exclude or partially exclude any event that results from the gross negligence of the policyholder or behaviors that caused the occurrence of an insured event. This means that if the policyholder’s actions or lack of action led to the cancellation of the trip, the insurance company may not cover the expenses.
Yacht charter insurance provides protection against damage to the vessel, equipment, and personal property. It also covers injuries, accidents, and liability claims.
Additional coverage like medical insurance or protection for extreme sports can be added. However, pre-existing conditions, intoxication, illegal acts, and improper operation may not be covered.
Cancel for any reason (CFAR) policies allow you to cancel a charter and receive reimbursement regardless of the reason. This comes in handy for cancellations due to weather, family emergencies, or simply changing your mind. CFAR helps recoup prepaid charter fees that would otherwise be lost.
How does yacht charter cancellation insurance work?
Yacht charter cancellation insurance works by providing coverage for the costs of the charter in the event that you need to cancel due to unforeseen circumstances. When you purchase a yacht charter cancellation insurance policy, you will typically pay a premium based on the total cost of the charter.
If you need to cancel your charter, you will need to file a claim with your insurance provider. The insurance provider will then review your claim and determine whether or not it is covered under your policy. If your claim is approved, the insurance provider will reimburse you for the costs of the charter, up to the limits of your policy.
How much does it cost ?
The fee is usually from 6% to 20% of the total value of your trip.
Choosing the best yacht charter cancellation insurance policy
When choosing a yacht charter cancellation insurance policy, there are several factors that you should consider. These include:
Coverage Limits: Make sure that the policy provides sufficient coverage to cover the costs of your charter.
Exclusions: Check the policy for any exclusions or limitations that may prevent you from making a claim.
Premiums: Compare the premiums of different policies to find one that fits within your budget.
Reputation: Choose an insurance provider with a good reputation for customer service and claims processing.
Purchasing yacht charter cancellation insurance as soon as you book your trip ensures that you’re covered immediately. This means that if something unexpected happens that leads to the cancellation of your trip, you can file a claim and receive reimbursement for your expenses.
Some insurance companies may have a time limit (up to 15 days) between your booking date and the confirmation of the insurance policy. This means that if you wait too long to purchase insurance, you may not be eligible for coverage. It’s crucial to check the terms and conditions of the policy to ensure that you meet all the requirements and time limits.