Charter Boat Insurance UK: Bareboat and Skippered Cover

Bareboat versus skippered: two different risks

On a bareboat charter the customer takes command, so the underwriter is rating an unknown skipper each week. Expect minimum experience or qualification requirements, a written charter agreement, a documented handover and a substantial damage deposit.

On a skippered charter your own skipper stays aboard, which reduces handling risk but adds passenger liability and, if the skipper is employed, employers' liability. Many owners find skippered terms more affordable per week for that reason.

Damage deposits, excess and who pays what

Charter policies normally carry an excess set at or near the damage deposit you hold, so routine berthing scrapes and lost equipment are settled from the deposit rather than through a claim. Getting those two figures aligned is one of the most useful things you can do at renewal.

Charterers frequently buy their own damage deposit insurance to reclaim the deposit. That protects them, not you, so your own policy still needs to respond fully above the excess and must not rely on the charterer having bought anything.

• Match the policy excess to the damage deposit you actually hold.
• Record a signed inventory and condition report at every handover.
• State clearly in the agreement who bears the excess.
• Photograph the boat before and after each charter.

Management agreements, ownership and fleet placement

Many charter boats are owned privately and operated by a charter company under a management agreement. The policy has to reflect that split: who is the insured, who has an interest in the hull, and whether the operator's own liability cover extends to your boat.

Where a boat sits in a fleet, cover is often placed by the operator across the whole fleet. That can be efficient, but read what happens on owner use weeks, during off-season lay-up, and if you take the boat out of the fleet mid-season.

Cruising area, season and owner use

Charter policies are written to a defined cruising area and season. Mediterranean and Croatian programmes attract different terms from Solent or west Scotland operations, and delivery passages between charter bases usually need declaring separately.

Owner use weeks are normally covered but must be declared, and lay-up periods often carry reduced premium alongside conditions about ashore storage and de-rigging. If you also live aboard between charters, see our liveaboard boat insurance guide.

What tends to affect the cost

Cover will depend on the insurer, the policy and your circumstances. Operators with tight handover documentation and consistent charterer vetting tend to see materially better renewal terms.

• Bareboat or skippered operation, and number of charter weeks.
• Insured value, age, type and equipment level of the boat.
• Cruising area, base port and season length.
• Damage deposit, excess level and claims history.
• Charterer qualification requirements and handover procedure.
• Whether cover is placed individually or across a fleet.

Frequently asked questions

Does my private boat policy cover chartering?

Almost never. Private policies exclude hire and reward, so chartering without commercial cover in place can leave a claim declined even if the damage happens outside a charter week.

Who pays the excess after charter damage?

That is set by your charter agreement, and it is usually taken from the charterer's damage deposit. The insurer looks to you as the policyholder, so the agreement needs to be explicit.

What qualifications must charterers hold?

Insurers commonly require documented experience and, for bareboat charter abroad, an ICC or equivalent. The exact requirement is a policy condition, so record what you check at handover.

Am I covered during owner use weeks?

Usually yes, provided owner use is declared. Confirm whether the excess differs and whether any restrictions on cruising area apply outside charter periods.