Yacht charter cancellation insurance costs 4–6% of charter value. Buy at signing — not after. Covers cancellation, curtailment, and medical evacuation. Standard travel insurance is insufficient for charters above €30,000.
Yacht Charter Cancellation Insurance — What It Covers
A yacht charter cancellation carries severe penalties: lose 50% of the base charter rate if you cancel more than 90 days before departure, or the full fee within 90 days. For a €80,000/week charter, that's up to €80,000 at risk. Cancellation insurance removes that risk for a premium of €4,000–€6,000. This guide covers exactly what charter insurance covers, what it excludes, and how to buy it correctly.
4–6%
Typical premium
of charter value
14 days
Buy within
of contract signing
>90 days
MYBA cancellation
deposit forfeited
100%
Within 90 days
full fee forfeited
What charter cancellation insurance covers
Pre-departure cancellation
Full refund of non-recoverable charter fees if you cancel due to illness, injury, bereavement, redundancy, jury duty, or other specified events.
Curtailment
Reimbursement for the unused portion of the charter if you must leave early due to the same covered reasons.
Owner cancellation
Consequential losses if the owner cancels or the vessel becomes unavailable — losses beyond the basic contract refund (e.g. flights, hotels).
Medical evacuation at sea
Helicopter or vessel-based medical evacuation. Critical for remote destinations (Norway, Caribbean, Pacific).
Medical expenses
Treatment costs incurred during the charter, including hospitalisation in a foreign country.
Embarkation delay
Additional expenses if you cannot board on schedule due to transport disruption, strike, or natural disaster.
Pre-existing conditions
Conditions known before policy purchase — excluded unless declared and accepted at additional premium. The most common claim rejection reason.
Change of mind
Deciding not to travel, family disputes, preference changes — not covered under any standard policy.
Damage to the vessel
Charterer-caused damage is covered by the security deposit, not by cancellation insurance. Hull insurance covers the owner.
Bad weather during charter
Poor weather conditions during an active charter are not covered — only a named storm preventing embarkation may qualify under select policies.
Premium examples by charter value
Insure the full amount — base charter rate + APA. Losing both is the worst-case scenario. Premium range reflects specialist vs standard travel insurer.
| Charter (base rate) | APA (30%) | Total insured | Premium 4% | Premium 6% | Risk if uninsured |
|---|---|---|---|---|---|
| €30,000 | €9,000 | €39,000 | €1,560 | €2,340 | Up to €30,000 |
| €60,000 | €18,000 | €78,000 | €3,120 | €4,680 | Up to €60,000 |
| €80,000 | €24,000 | €104,000 | €4,160 | €6,240 | Up to €80,000 |
| €120,000 | €36,000 | €156,000 | €6,240 | €9,360 | Up to €120,000 |
| €200,000 | €60,000 | €260,000 | €10,400 | €15,600 | Up to €200,000 |
Specialist yacht charter insurance providers
Pantaenius
Germany / UK / USLeading specialist for superyacht and charter insurance. Comprehensive charter-specific policies including owner cancellation and consequential loss. Marine-only insurer — understands the risk.
Best for: Premium, full-coverage charters above €50,000
Markel (Alterra Marine)
UK / USSpecialist marine and yacht insurer. Strong track record for high-value charters. Covers charter party liability, personal effects, and medical evacuation. Available through marine brokers.
Best for: Mid-to-large charters; good for US-based charterers
Blue Water Insurance
UKYacht charter-specific policies including curtailment, owner default, and emergency medical. Frequently recommended by MYBA brokers. Simple online quote for charters up to £150,000.
Best for: UK-based charterers; easy online purchase
Yachtsman (Arthur J. Gallagher)
UKCovers charter cancellation, curtailment, travel delay, and personal liability. Part of Gallagher's specialist marine division. Competitive premiums for Mediterranean charters.
Best for: Mediterranean charters; mid-market pricing
How to buy charter insurance correctly
Buy at signing
Purchase within 48 hours of signing the charter contract — no later than 14 days. Events occurring after policy purchase but before departure are covered; events before purchase are pre-existing.
Insure the full amount
Insure base rate + APA + any other pre-paid costs. Do not insure only the base rate to save premium — you will lose the APA if you cancel.
Declare medical conditions
Any pre-existing conditions known at purchase must be declared. Failure to declare invalidates the claim. Acceptance at additional premium is preferable to rejected claims.
Use a specialist
Standard travel insurance typically excludes owner cancellation, charter-specific delays, and marine medical evacuation. A specialist marine insurer covers all of these.
Check the excess
Policy excess (deductible) of €500–€2,000 is standard. Ensure you are comfortable with the excess relative to the claim scenario — small curtailments may not exceed the excess.
Keep documentation
In the event of a claim: medical certificates, cancellation correspondence with the broker, receipts for all pre-paid costs. Claims without documentation are routinely rejected.
Charter insurance — FAQ
Is yacht charter cancellation insurance required?
It is not legally required by the MYBA contract, but virtually every reputable broker strongly recommends it — and some central agents require it before releasing the balance payment. For any charter above €30,000 (or $32,000), the premium is small relative to the cancellation risk: forfeiting the 50% deposit if you cancel more than 90 days before departure, or the full charter fee if you cancel within 90 days.
How much does yacht charter cancellation insurance cost?
Yacht charter cancellation insurance typically costs 4–6% of the total insured charter value (base rate + APA). On a €80,000/week charter with €24,000 APA, the total insurable value is €104,000 — the insurance premium would be €4,160–€6,240. Some policies allow you to insure only the base charter rate (excluding APA); others insure the full amount. Always insure the full amount — you lose the APA too if the trip is cancelled.
What does yacht charter cancellation insurance cover?
A comprehensive yacht charter policy covers: cancellation before departure (illness, injury, bereavement, job loss, jury duty), curtailment (cutting the trip short due to the same reasons), medical expenses and evacuation at sea, personal liability, loss of personal possessions, and in some policies, delay due to adverse weather preventing embarkation. Charter-specific policies also cover owner cancellation — if the owner cancels or the vessel becomes unavailable, you are covered for consequential losses beyond the bare contract refund.
What does yacht charter insurance NOT cover?
Standard exclusions: pre-existing medical conditions (unless declared and accepted at additional premium), change of mind / disinclination to travel, financial failure of the broker (unless specifically endorsed — check for ATOL/ABTA equivalents), damage you cause to the vessel (that's the security deposit's purpose), and weather-related cancellation once the charter has begun (curtailment due to a named storm is covered; bad weather during a trip is not). Read the exclusions carefully — most disputes involve pre-existing conditions and weather.
When should I buy charter cancellation insurance?
At the time of, or immediately after, signing the charter contract — never later. The policy must be in place before any insured event occurs. If you delay and then a family member is diagnosed with an illness, that illness becomes a pre-existing condition and cancellation related to it will not be covered. The premium is due within 14 days of signing in most MYBA protocols. Treat it as part of the deposit payment process.
Who provides yacht charter cancellation insurance?
Specialist marine insurers and yacht charter insurance brokers. Well-known providers include Pantaenius, Markel (formerly Alterra), Yachtsman (part of Arthur J. Gallagher), and Blue Water Insurance. Standard travel insurers (Allianz, AXA, etc.) often have charter or 'high-value holiday' endorsements, but these rarely cover owner cancellation, yacht-specific delays, or charter-specific consequential losses. Use a specialist. Your charter broker can recommend a provider.
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