In addition to the standard insurance that should be covered by every person going abroad (third party liability, medical expenses, accidents, loss and theft of baggage, rescue and assistance costs) the skipper who runs the yacht should consider the insurance covering his actions on the yacht.
The Skipper shall be personally liable with his property for all damage caused to third parties while operating the yacht. Therefore he should have an appropriate additional insurance package. The insurance companies offer such packages to non-professional and professional skippers. A professional skipper is the one who is paid for his work – the fees for such are higher than for an amateur skipper.
A skipper usually buys insurance for a year.
What accidents are covered by skipper’s insurance?
Skipper’s third party liability – liability for damages caused to third parties in case the yacht’s insurance does not cover them. This insurance usually also covers accidents caused by obvious negligence of the skipper.
Legal expenses – if a lawyer is needed abroad, the insurance will cover considerable costs.
Loss of charter insurance – if a skipper damages a yacht so badly that it is unable to continue on the next charter, the owner of the yacht can claim compensation from the skipper. The insurance covers it.
Risk of seizure – the yacht may be arrested in the port in case of suspicion of committing a criminal act. In this case, the insurance will allow to pay a deposit for releasing the yacht from custody or to cover the owner’s losses resulting for example from the loss of successive charters.
Better safe than sorry. The safe is the one who takes care of his finances and safety. So before you get carried away by the adventure, complete the formalities to avoid unpleasant situations and stress during and after the cruise.