The most common type of insurance taken out on a yacht charter is the Excess Waiver. What is it? What’s the difference with the boat deposit? Is it compulsory? GlobeSailor gives you all the information you need on this not-always-easy-to-understand insurance…
How does the Excess Waiver work?
The Excess Waiver for a boat rental works in the same way as for a car rental.
The boat’s deductible is the amount below which the boat’s insurer will not pay. The rental company (and the yachtsman) are responsible for covering this amount in the event of a claim. The rental company passes on this amount in the boat’s security deposit. It’s important to understand that the amount of the boat’s deductible is often equal to the amount of the deposit, but not necessarily. A rental company may well ask for a deposit higher than the boat’s insurance deductible…
For example, a customer rents a boat for 3,500 euros, with an insurer’s estimated value of 200,000 euros and a deductible of 4,000 euros. The rental company may ask for a security deposit of 1,000 euros (for minor damage such as the loss of a winch crank, broken crockery, a lost fender, etc.) + 4,000 euros deductible, i.e. a total security deposit of 5,000 euros. In this case, your guarantee will only cover the €4,000 deductible, without the €1,000 for minor damage caused by the crew and not covered by insurance.
It’s important to note that a residual deductible is often applied in the event of a claim. In fact, to raise awareness and encourage responsibility among charterers, even if the insurance reimburses the deductible in the event of damage, an amount of between €350 and €500 remains payable by the charterer.
Many rental companies still prefer to collect the security deposit together with the excess, even if you have taken out the excess waiver. In the event of a claim, the rental company will collect your deposit and your insurance will reimburse you for the excess. The maximum reimbursement amount is generally capped at 8,000 euros.
How much does the Excess Waiver cost?
The price varies depending on the insurance company and broker you choose. For more than 15 years, GlobeSailor has been working with Ouest Assurances, which offers a competitive Excess Waiver service that reimburses quickly and efficiently in the event of a claim.
The Excess Waiver costs between 4% and 8% of the rental amount. The price varies according to the sailing area (Europe or World) and the amount of the boat security deposit.
Insurance policy fees are often added by the insurance broker (usually between €20 and €30).
What damages are covered in the event of a claim?
The Excess Waiver covers damage caused to the boat in case of a “sea event”, but in no way allows you to clear yourself of damage resulting from “minor breakage” for which you may be responsible and which remains your responsibility. The notion of ” sea event ” is important and must be clearly understood. A “sea event” is defined as a characterized accident resulting either from external impact of the ship, with a fixed or moving body, or from fire or explosion or natural force of exceptional and unforeseeable intensity, affecting the ship.
Why is the Excess Waiver sometimes mandatory?
Some charter companies require you to take out an Excess Waiver, particularly when chartering a boat with a professional skipper. In this case, the customer must also pay a reduced security deposit (between €500 and €1,000) to make him/her more responsible. It is the skipper and the rental company, not the customer, who bear the vessel’s excess.
We hope these details have helped you understand what a yacht charter Excess Waiver is. We strongly advise you to take out this insurance, which will enable you to sail with peace of mind, because even the most seasoned sailors can always be affected by an event at sea!
For more information, click here to download the insurance contract of our partner Ouest Assurances.