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YACHT CHARTER CONTRACT

Read the fine lines!

Everything is in place for a fabulous yacht charter experience. You have decided on your destination, picked your boat and have a comfortable relationship with your broker or charter company representative. Flights and hotels are reserved accordingly. Now that you are ready to sign the bottom line, take a moment and read the contract reserving your charter carefully. Although a private yacht charter may be the ultimate vacation, so much can go wrong. It is absolutely crucial that you are aware of the consequences.

When you read your contract, be sure to ask questions if something is not clear. This legally binding document may hold you responsible for more than you may have imagined. When something does go wrong, we have found most charter companies and brokers will do their best to work with you. But it is best to be informed about the following issues highlighted here.
   

YACHT DELIVERY
Charter companies will leave some wiggle room in the contract for a possible delay in providing the chartered yacht. There may have been problems created by the previous charter that need some extra time to be resolved. Or the boat may for some reason not be available at all. You want to be sure that your needs are covered if the delay is more than several hours. You also want to be sure that the boat “delivered” to you is in good condition and that it is indeed the boat you have reserved. If you have been promised a new boat – it is often a good idea to have the name of the boat and its year in writing from the representative.

If there is a significant delay you want to be sure that everything will be done to provide a replacement of similar or higher value. Money back will be not cut it for most sailors who have non-reimbursable airline tickets, often times for large groups. Cancellations at the last minute to popular destinations will leave you stranded as most yachts will be reserved and even the onshore options will be booked. If you use an independent boat owner and the boat becomes laid up, chances are your vacation is over before it happens. The independent owner will not have a fleet of other options to propose to you. Sure the owner may reimburse you for the charter, but not any of the other expenses associated with travel.

INSURANCE
The owner of the yacht provides general insurance on the yacht and you, as charterer will be responsible for the deductible. The deductible can run several thousand dollars. The larger charter companies make this insurance on the deductible a requirement. This additional Yacht Damage Insurance is also known as a Hull Damage Waiver. Many smaller charter companies do not insist on the Yacht Damage Insurance. However, the security deposit required can be in excess of $2500. If you are on a crewed charter the Yacht Damage Insurance is usually included. You as the charterer are responsible for deductibles, even if the hired skipper causes damage to the hull. When you have the choice, it is up to you as to whether or not you want to pay the couple hundred dollars to protect a couple thousand dollars. Insurance usually does not cover the dinghy and the outboard motor.

DAMAGE
Before you embark, inspect your boat very carefully. Once you sail away from the dock, she is all yours. You have confirmed that you have not found any significant problems and have fully accepted the charter. It will be too late to complain later. Document in writing any concerns that you may have with the charter company. In case the worse happens, and you do damage the yacht, be forewarned that some contracts make you responsible for more than the actual damage. Some contracts will hold you responsible for future contracts that they will not be able to complete as the yacht may be out of commission.

RUNNING EXPENSES
All contracts will have a clause requiring that the water and fuel tanks be refilled upon the return of the charter. If you have not planned ahead, you may get stuck paying top dollar for these fees. This may also include any fees incurred to return the boat to its original port of call. Some larger charter companies will charge you a fee before the charter, so be sure to check this point carefully with your representative.

NAVIGATION LIMITS
 The hours during which you may operate the yacht are often limited in the contract. For example, sailing may not be allowed after nightfall. Some companies have navigation restrictions. You can only sail within their designated home waters. Any breach in respecting these rules may result in the negation of the insurance coverage.

RESTRICTED USAGE
You will be giving the charter company a list of your crew/passengers who will be on board. If you exceed the number of passengers listed, you may forfeit your insurance and you may be breaking laws in certain countries. Significant fines may be involved.


AUTHORITY
With a bareboat charter, the person taking on the role of skipper agrees that he will be physically present aboard the yacht at all times, with at least one other competent crew member present, when the boat is underway. With the crewed charter, as the Captain is responsible, the client may not override any of his/her decisions with regard to safety concerns.

NON-ASSIGNMENT
As many charters are planned in advance, and last minute cancellation are difficult, your best bet may be to let someone else use your charter. Most charter companies are happy to oblige, with a written consent.

SEVERE WEATHER
Be sure to check the hurricane policies of the charter company as well as reimbursement policies in case of severe weather. Many companies do not offer these. So know what you are getting yourself into if you choose to take these risks.

CANCELLATION POLICY
As the yacht charter industry is so particular, refunds are often not given for charters that are cancelled with a ninety-day period. Be sure to check the time frame of the contract that you sign; it may be 60 or 30-day period from more generous companies. At the same time, there may be a clause allowing the charter company to terminate the charter with less notice. The contract may also release the charter company from responsibility for weather conditions, which may arise or occur before or during the charter.

BROKER CONTRACTS
If you are working with a broker, they may have you sign a contract with them or send you the charter company or owner contract directly. In any case, the Charter Agreement with the owner or charter company will govern the final relationship between the charterer and actual owner of the yacht.

Be careful with what you sign. Remember if it is too long and detailed, it probably does not cover you.

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The information provided in Sailing-Advisor.com is based on the opinion of the writers and is presented in good faith. All information is subject to change.