The person who operates a charter boat or yacht carrying people for rent has special legal and secure concerns.
There are particular requirements for this kind of business as license, necessary safety equipment, health check-ups of the crew etc. Therefore types of insurance the one may need are special as of high burdens of responsibility for the property and passengers on board.
The following types of Boat Insurance are available for the boat operators:
• Agreed-value policy
This type of policy goes for expensive boats and all boats that of length over 27 feet. Agreed-value term means that both insurer and boat operator agree on the assessment of the vessel and exactly this amount to be mentioned in the policy. In case of total loss the insurance company will return money due to the agreement. The policy also covers replacement of some parts or equipment in case of partial damage or loss. However, some policies are not supposed to provide separate amount in salvage, wreck removal, fuel spill but pay out only the agreed value of the vessel.
• Actual cash policy
It works on depreciation of the vessel and its equipment related to the date of a claim. The price here is much less than the above mentioned policy and does not do for newly purchased boats.
• All-risks policy
It covers all possible risks on board as total and partial loss, repairs, stolen effects, medical costs, incidents, storm haul out assistance etc.
• A named-danger policy
This type names what exactly will be covered in the case of claim. Here are lots of exceptions: freezing loss or damage, navigation, self injuries and so on.
Mind that yacht insurance does not cover people in water and sport divers.
Some tips for the Charter Boat/Yacht operator
• Each crew member on board should be specially protected with insurance
• Passenger medical coverage should be included in Charter Boat policy.
• Boat policy protects passengers while on-board but as soon as they go ashore they come to be off the policy unless covered with shore excursion insurance.
• Personal effects policy is regarded as a bonus from a boat operator to make his passengers happy and totally protected.
It is rather easy to get the right Charter Board Insurance if to know what to be cleared out when talking to the agent and what to expect from the insurance bought.
Good advice: buy insurance policy based on the worst plot, but hope never to claim.