Avoid cost traps when planning your cruise!
Some of our customers do not have charter deposit insurance with YACHT-POOL, but rely solely on their skills or another provider. Because damage to the chartered ship is a calculable risk for experienced skippers – really?
A calculation that doesn’t always work out:
Additional income at the expense of charter customers
We are increasingly receiving reports from skippers who cannot explain the damage (which allegedly did not exist before they took over the ship). This ranges from scratches on the floorboards of the cabin, to malfunctions of the autopilot, anchor winches and engine, to leaking windows and the usual scratches.
YACHT-POOL knows that the vast majority of charter companies are serious and customer-oriented. However, it is a fact that the number of claims and claims costs are rising, as are customer complaints about unjustified and unjustifiably high claims bills.
Watch out for deceptive packaging!
Some charter companies offer their own “security deposit compensation”, which is often not real insurance but a self-calculation. There are often no reliable conditions and the exclusions – e.g. grounding, damage to the sails or rudder or the loss of parts! – often contradict realistic insurance cover. In any case, these agreements only apply to the one charter in question: you pay anew for each charter!
The biggest problem with this “insurance”, however, is that the charter company represents two opposing positions in one person: it makes a claim for damages and it itself (as the “insurer”) can decide whether it should pay this or not. If the charter company does not want to pay for the damage out of its own pocket and would rather keep your deposit and the premium for the “deposit compensation”, this is very simple: it accuses you of gross negligence. This is because the small print of the “deposit compensation” always states that the obligation to pay benefits no longer applies in this case. Of course, you can now sue the charter company for payment – if you have a lot of time and money to go through a trial with an uncertain outcome in a foreign court.
Is it all just theory? No! In a recent case, a skipper overestimated the water depth during a harbor maneuver and had a hard grounding. Both rudders were damaged. The skipper thought he was financially secure, as he had taken out “bonding insurance” with the ship’s large and well-known international charter company. The rude awakening came when the boat was returned: the base manager accused the charter customer of being drunk – and that was grossly negligent. This meant that there was no “insurance benefit” and the deposit had already been deducted from the credit card.
Charter deposit insurance – one name, many differences
Some “real” insurers offer charter deposit insurance similar to YACHT-POOL. But the devil is in the detail of the small print: we know policies with curious exclusions such as “damage to paintwork, scratches and scrapes”. Often only the damage is insured, but not the loss.
It’s a shame when the outboard motor lies at the bottom of the sea and is undoubtedly broken, but also lost.
An internationally active insurer requires “10% of the deposit” as a deductible in the event of damage, with YACHT-POOL it is “5% of the damage, maximum 5% of the deposit”. A small difference with a considerable effect: with a deposit of €3,000 and damage in excess of €1,000, the YACHT-POOL customer is reimbursed €950. However, 10% of the deposit is deducted from the customer of the other insurance company: that is €300. As a result, he will only be reimbursed €700.
The 2019/15 issue of the magazine “Yacht” warns of even more drastic cases: Some deposit insurers demand up to €800 excess for a €3,000 deposit! The yacht therefore rightly warns in ⏩ this article with “Beware of cost traps – prices and benefits of security deposit insurance vary greatly” and rightly points out the underestimated deductibles.
We know that the importance of this cost issue is underestimated by many skippers. Of course, the vast majority of skippers sail for years without any damage – but when it happens, the harmony of the crew is quickly severely disrupted: as united as the crew was before the charter started, they quickly disagree when everyone has to pay for the damage caused by just one person.
Only the right charter deposit insurance will protect you from all this – and won’t put more of a strain on your on-board funds than a good dinner: As a responsible skipper, relieve your crew and yourself of these worries and enjoy a carefree cruise!
YACHT-POOL recommends:
No cruise without real charter deposit insurance. With YACHT-POOL, the pioneer of charter deposit insurance, you are well protected at sea:
✔ Protection for skipper and crew
Valid worldwide
Charter as often as you like: Pay for a charter and be insured for free for every charter with the same deposit amount within the next12 months!
✔ Any deposit amount insurable
✔ Deductible only 5% of the deposit or the lower damage,
at least 50.-€
Before your next trip, be sure to close the ⏩Take out the right charter deposit insurance! ATTENTION LINK!!!
Dr. Friedrich Schöchl
CEO YACHT-POOL
