Charter Yacht Insurance
Charter yacht insurance covers a yacht that earns charter income. A standard pleasure-use policy excludes commercial use, so an owner chartering out needs a charter endorsement, higher passenger and crew liability, and optional loss-of-charter-hire cover. World Yacht Insurance arranges it at Lloyd's of London through London Marine Insurance Services Ltd.
This page is for the owner putting a yacht into charter. If you are renting a boat instead, our bareboat charter insurance page covers the charterer's side.
- Up to $5M
- Cover placed at Lloyd's
- 48 hours
- Typical quote turnaround
- €600/day
- Loss-of-charter-hire
- Worldwide
- Including the Caribbean
What Is Charter Yacht Insurance?
Charter yacht insurance is cover for a yacht that earns money from charter. A pleasure-use policy excludes commercial use, so the moment you take bookings you need a charter or commercial-use endorsement, higher liability, and, if you want it, loss-of-charter-hire cover.
The trigger is income, not the size of the boat. As soon as paying guests step aboard, your use changes from private to commercial. A standard policy is written for private use, and undisclosed charter can void it. The endorsement restores the cover a pleasure policy leaves out and sets the passenger and crew limits underwriters will accept.
This is the page for owners. That includes fishing and sightseeing charter operators, crewed-charter owners, and anyone running a yacht in a charter program. If you are the one renting the boat, you need charterer's cover instead, and our bareboat charter insurance page walks through that side.
World Yacht Insurance is a yacht-insurance introducer arranging hull and liability cover up to $5M for sail and motor yachts worldwide, including the Caribbean, placed at Lloyd's of London through London Marine Insurance Services Ltd, a Lloyd's-accredited broker.
What's Covered and What Isn't
The terms below come from the LMIS policy wording we hold, not a generic template. We publish the exclusions in full so you can see the edges before you buy.
Covered
- Agreed-value hull and machinery, paying 100% of the agreed value on a total loss
- Charter or commercial-use endorsement that adds cover a pleasure policy excludes
- Protection and indemnity: third-party injury and damage plus passenger liability
- Crew liability under the Jones Act, added as an endorsement and priced on crew count
- Pollution and environmental response
- Medical payments for guests aboard
- Optional loss-of-charter-hire at €600 per day, maximum 67 days
- Named-windstorm cover with a signed hurricane plan, at a 10% deductible
- Third-party liability up to our $5M in-house authority
- Worldwide navigation, including the Caribbean
Not covered or conditional
- Undisclosed commercial use, which can void the policy
- Passengers or crew beyond the number your policy schedule caps, so it must match your actual operation
- Older hulls without a current marine survey
- Named-windstorm losses without a signed hurricane plan in place
- Wear, tear, and mechanical breakdown
- The tender or dinghy unless listed on the schedule
- Removable electronics, which are commonly sub-limited
- Trimarans, ferro-cement hulls, and cigarette boats are not eligible
One coverage to get right is crew. Employed captain and crew can bring a civil action against you as owner for injury under the Jones Act (46 U.S.C. §30104), so crew liability is added as a separate endorsement priced on your crew count.
For a specific hull, see catamaran insurance, sailboat insurance, or motor yacht insurance.
We do not soften the exclusions. Reading them now saves a declined claim later.
How Much Does Charter Yacht Insurance Cost?
Charter hull cover is based on the yacht's agreed value. The pleasure-use band runs about 1% to 1.5% of that value per year, and charter use is loaded above it for crew, passenger numbers, and hurricane-zone cruising. The wider US market quotes roughly 1% to 5% of value depending on use.
| Agreed value | Indicative pleasure premium (1% to 1.5%) |
|---|---|
| $150,000 | $1,500 to $2,250 |
| $500,000 | $5,000 to $7,500 |
| $1,000,000 | $10,000 to $15,000 |
Those figures are the pleasure baseline. Charter use adds a loading on top, so treat the table as a starting point, not a charter quote. We do not publish a single charter-loading percentage because underwriters set it per risk.
Liability limits sit on top of hull pricing. If you are asking what a $1 million liability policy costs, the honest answer is that liability is priced separately and depends on your operation, so it is quote-specific.
Every figure here is indicative, not a quote, and none of it is financial advice. For your exact number, send us the yacht details and we will come back with a real quote.
Do You Need a Commercial Licence to Charter Out Your Yacht?
In US waters, a yacht carrying six or fewer passengers for hire is an uninspected passenger vessel, the "six-pack," run by an operator who holds an OUPV credential. Carry more than six and the boat becomes a small passenger vessel that needs USCG inspection and a Certificate of Inspection.
That line matters for your insurance. Underwriters price and condition cover around your passenger count, and your policy schedule states the maximum passengers and crew they will accept. The cover has to match what you actually do.
- Six or fewer passengers for hire: an uninspected six-pack vessel run by an OUPV operator (46 U.S.C. §2101(55))
- More than six passengers: a small passenger vessel needing USCG inspection and a Certificate of Inspection (46 U.S.C. §2101(49))
- A passenger for hire is defined at 46 U.S.C. §2101(32), and it is the count that sets the threshold
You can read the passenger-vessel definitions in full at 46 U.S.C. §2101 on the Cornell Legal Information Institute.
Underwriters also expect a current marine survey on a working charter yacht, because a boat that carries paying guests sees harder use than a private one.
Loss of Charter Hire: Protecting Your Charter Income
A chartered yacht that sits in the yard after a covered loss stops earning. Loss-of-charter-hire cover replaces that lost income while the boat is repaired. Under the LMIS wording it pays €600 per day, maximum 67 days. Those are the exact clause figures, not a rough guide.
The cover is triggered by a covered physical-damage claim, not by a cancelled booking or a slow season. So it answers the owner's real fear, which is a claim that takes the boat out of service during peak weeks and kills the income you had booked.
Pair it with agreed-value hull cover. On a total loss, an agreed-value policy pays 100% of the value written into the policy, with no argument about depreciation at claim time. Together they protect both the asset and the income it produces. No competitor page publishes these numbers, and we do.
Cruising Limits and the Hurricane Box
Your policy covers a declared navigation area, and one zone changes the terms: the Atlantic hurricane box.
Charter fleets in the Caribbean and along the US East Coast plan around the Atlantic hurricane season, which the National Hurricane Center puts from June 1 to November 30. Inside that box, named-windstorm cover only responds with a signed hurricane plan in place, and it carries a 10% deductible. That is the condition that unlocks the cover, and it applies wherever you charter in named-storm waters, from Florida to the Caribbean and the BVI.
A few grounds carry their own rules. Croatia doubles deductibles per claim, and Cuba, Haiti, and Venezuela are restricted. For the Mediterranean detail, see our Mediterranean yacht insurance page. Tell us where you charter and we will confirm the terms for that water before you commit.
Chartering Out vs Taking a Bareboat: Which Cover Do You Need?
Two different people search for charter insurance, and they need opposite policies. Here is the split.
You own the yacht and charter it out
You need a charter or commercial-use endorsement, passenger and crew liability, and loss-of-charter-hire. That is this page.
You rent or charter a bareboat
You need charterer's legal liability plus a damage deposit or deposit waiver. Read our bareboat charter insurance page for that.
Two things trip people up. A security deposit is not insurance, and a damage waiver is not third-party liability. If you are the renter, the owner's policy protects the boat, not you, so you still need your own cover. If you own the boat, none of the deposit-waiver machinery replaces a proper commercial endorsement.
How to Arrange Charter Yacht Insurance With World Yacht Insurance
Getting a charter quote is straightforward. We ask for the details underwriters need, then place the cover at Lloyd's.
London Marine Insurance Services Ltd is a Lloyd's-accredited broker authorised and regulated by the UK Financial Conduct Authority, firm reference 308599. World Yacht Insurance is an introducer, not an insurer, and does not carry risk. Read how it works for the full chain. None of this is financial advice.
- 1
Tell us about the operation
Give us the yacht, its agreed value, your cruising area, and how you charter it, including passenger count and whether it is part-time or full-time.
- 2
Send the paperwork
Provide a current marine survey, and for hurricane-zone cruising, a signed hurricane plan.
- 3
We place it at Lloyd's
We arrange cover at Lloyd's of London through London Marine Insurance Services Ltd and return quotes in about 48 hours.
Why World Yacht Insurance
We place charter cover at Lloyd's of London through London Marine Insurance Services Ltd, a Lloyd's-accredited broker regulated by the Financial Conduct Authority under firm reference 308599. That gives your charter yacht a Lloyd's-market home for its cover and its claims.
We hold the LMIS policy wording, so the terms on this page come from the primary source, not marketing copy. Our in-house authority runs up to $5M, with larger risks placed in the wider Lloyd's market, and we cover yachts worldwide, including the Caribbean. Most owners have a quote back within about 48 hours.
Charter Yacht Insurance FAQs
Does my standard yacht policy cover chartering out my boat?+
No. Pleasure-use policies exclude commercial charter income, and undisclosed charter can void the policy. To charter out legally you need a charter or commercial-use endorsement added to your cover. The safest move is to disclose the charter use before you take a single booking.
How much does it cost to insure a charter boat?+
Hull cover is based on agreed value, roughly 1% to 1.5% for pleasure use and loaded above that for charter. The wider market runs about 1% to 5% of value. Liability limits are priced separately, on top of the hull. Every figure is indicative, not a quote.
Do I need a licence to charter out my yacht in the US?+
Six or fewer passengers for hire makes your boat an uninspected "six-pack" vessel run by an OUPV operator. More than six makes it a small passenger vessel that needs USCG inspection and a Certificate of Inspection. Your policy has to match your passenger count.
Does charter yacht insurance cover my crew if they are injured?+
Employed crew can claim against you as owner under the Jones Act, 46 U.S.C. §30104. Crew liability is a separate endorsement, priced on the number of crew you carry. Do not hire crew for a charter without it in place, because the exposure is real.
What is loss of charter hire and how much does it pay?+
It is a daily benefit that replaces charter income while the yacht is repaired after a covered loss. Under the LMIS wording it pays €600 per day, maximum 67 days. It is triggered by physical-damage claims, not by cancellations or a soft booking season.
I'm renting a yacht, not chartering mine out. Is this the right page?+
No. You need charterer's cover and a deposit or deposit-waiver arrangement, not an owner's commercial endorsement. Read our bareboat charter insurance page instead. Remember that a security deposit is not insurance and does not cap your full liability.
Can World Yacht Insurance cover a yacht in a charter programme?+
Yes. We arrange a charter or commercial-use endorsement placed at Lloyd's through London Marine Insurance Services Ltd, with an optional loss-of-charter-hire add-on at €600 per day for up to 67 days. Trimarans, ferro-cement hulls, and cigarette boats are not eligible.
Reviewed by Costas Matheou, licensed insurance agent (Cyprus).
Coverage terms, premiums and deductibles on this page are indicative and not financial advice. Cover is subject to underwriting, survey and the policy wording.
Get Charter Yacht Cover Placed at Lloyd's
Tell us about your yacht and how you charter it, and we will arrange a quote from the Lloyd's market. Most owners hear back within about 48 hours.