What is yacht charter cancellation insurance?
Yacht charter cancellation insurance is similar to trip cancellation insurance as in it is an insurance policy that protects your investment when it comes to a trip being cancelled, however it is focused on a yacht charter rather than another extravagant vacation. It also differs from Travel Insurance, which provides international medical insurance coverage for when you are traveling abroad, outside of your home country.
What is covered by yacht charter cancellation insurance?
A good yacht charter cancellation insurance plan should protect you from many issues that may come up causing you to cancel your plans. Examples of items typically covered by a good charter cancellation insurance policy include:
· Sickness, injury or death of insured, a family member, a travel companion, a business partner or a child caregiver
· Primary residence or destination being rendered uninhabitable
· Documented theft of passports/visas
· Involved in a merger, job loss or job relocation
· Documented traffic accident
· Inclement weather that causes cessation of services provided by your common carrier
· Mechanical breakdown of the common carrier
· Evacuations due to natural disasters
· Emergency military duty for national disaster
· A terrorist incident
· NOAA hurricane warning at destination
· Court order to appear as a witness
· Jury duty
According to CNBC, rates for private crewed yacht charters are generally thought to start around $10,000. Depending on the size of the yacht, the destinations, and other factors, that amount can increase tenfold. No one wants to lose that investment due to an unexpected event, which is why we say, plan for what is not on the itinerary.
Why focus on yacht charters and not other vacations?
Given what is currently going on in the world, we are seeing that many people are looking to use yacht charters instead of cruises. This is due to the social distancing implications and overall wellbeing concerns and being able to limit who they come into contact with, as well as the destinations they are going. With certain locations opening and getting ready for tourists, such as the Bahamas, it is clear to see why this is going to be an attractive alternative in the coming months.
Life is unpredictable and plans often change. One of the basic issues that insurance protects us against is the fact that life is unpredictable. So, while you may not be able to prevent a situation from happening, you can prevent an issue from becoming a worst-case scenario. For more information on the different types of coverage that trip cancellation insurance offers, contact us at +1 954 828 1819 or +44 (0) 1624 678668 or visit us online at mhginsurance.com.