Security Deposit - Two Completely Different Models
When you charter a yacht, you often leave a security deposit. If damage occurs, you may lose some or all of it. Most charter companies offer a Damage Waiver (a waiver or reduction of security). Sounds good, but beware: not all waivers are the same.
Key Difference: Damage Waiver no automatically means insurance.
Model 1: YACHT-POOL Charter Deposit Insurance - Real Insurance
This is what we mean when we talk about real insurance:
- No hidden clauses
- Cover skipper and crew
- Valid globally
- Single premium, 12-month protection (you charter in May, you're covered until May next year)
- Any guarantee amount
- Small excess: 5% of the guarantee (or of the value of the damage, if lower), minimum €50
- Yacht and all equipment are insured - exceptions are clearly defined
You can increase the sum insured at any time if you need a higher guarantee for a particular charter. The premium is recalculated pro-rata.
Model 2: Damage Waiver from Charter Companies - Usually an „Expensive Internal Solution”
Many charter companies have their own „damage waiver”, but beware - it's often not a stand-alone insurance, but a clause they write into the contract. Not always customer friendly.
Typical differences and risks:
- It's not a separate policy but a clause in the charter contract
- Terms often ill-defined
- Exceptions on a conveyor belt:
- Grounding
- Steering damage
- Dinghy damage
- Scratches and knocks
- Damage to auxiliary (dinghy) engine
- Loss of equipment
- Damage to sails, etc.
Practical Reality
Even with Damage Waiver, surrender surprises are a constant. You may end up paying a substantial excess or a breakage under the agreed terms.
The skipper or charter customer pays alone or together with the crew. This is where the frustration starts - for everyone:
You thought you were covered, but you end up with the bill, the arguments and the stress of handing over.
Important: Damage Waiver „Mandatory” - But Not Always
Many charter companies now include the Damage Waiver as a mandatory part of the contract - not as an option.
But we have an informal agreement with several serious companies: they are willing to waive this obligation if you submit a valid policy YACHT-POOL.
Clarify with us before you switch companies just because of the mandatory Damage Waiver. Say clearly: I want to book, but without the Damage Waiver.
In many cases, you get the contract without the mandatory Damage Waiver.
It's often just a standard clause that can be removed or adjusted on request.
At a glance
YACHT-POOL Charter Deposit Insurance:
- Real insurance with clear, customer-orientated terms
- Valid global, 12 months protection - one charter covers all of the following
- Transparent franchise, flexible amounts
- Yacht and equipment insured - no hidden exceptions
- Significantly cheaper
Damage Waiver from the Companies:
- It's often not insurance, but a unilateral internal arrangement
- Commonly includes exceptions, allowances and delivery surprises
- Presented as „compulsory” but not always - we can help clarify
If you have questions about warranty insurance for your charters, write to us
or call us on 004073 CAPETAN.
team Capetan Club / Sail Armada
