Insurance question re. private charters

[Fenderr]

More of Fenderr's thinking about his new (soon to be) 38 footer, which may well end up (thanks to the advice on this forum) being parked somewhere in the Algarve. Anyone know what the insurance position is if I let a few well tested, properly qualified friends have use of her for a small consideration (not necessarily in hard currency - help with equipment or mooring fees, etc). And apart from the risk of damage (no greater than mine I guess) are there any other considerations?

Anyone done it / doing it?

 

[duncan99210]

There have been threads on here before on a closely related topic of taking money to allow folks to use your boat, albeit not making a profit. As soon as you accept anything beyond contributions to the costs of that particular trip (eg fuel, berthing at a distant marina, food) you are effectively operating for hire or reward and thus chartering. Your boat needs to be coded and the insurers informed.

However, how anyone will find out that your mates have slipped you a few quid towards overall running costs is difficult to see........

As to insurance, you'll need to talk to your broker and find out what the position is as regards letting others use your boat. I would suggest not mentioning any money changing hands.

 

[JumbleDuck]

There have been threads on here before on a closely related topic of taking money to allow folks to use your boat, albeit not making a profit. As soon as you accept anything beyond contributions to the costs of that particular trip (eg fuel, berthing at a distant marina, food) you are effectively operating for hire or reward and thus chartering. Your boat needs to be coded and the insurers informed.

Does it make a difference if he's in Portugal?

 

[prv]

If I was doing this I would check more carefully, but I believe my insurance wording allows anyone with the policyholder's permission to use the boat.

Unlike car insurance, which is more or less standardised, marine insurance does vary. So it's no good asking general questions here - you need to read your policy terms.

Pete

 

[Sailfree]

Comply with Portugal local charter rules.

Someone (a competitor) will inform the authorities.

Never underestimate the handover briefing and checking boat back in. Even honest people forget to report breakages as they feel they paid enough for the charter.

Relevant to the beneteau that lost its keel the charters will tell you if they ground the yacht or hit something won't they?

Are you going to be there to do this?

 

[Tranona]

More of Fenderr's thinking about his new (soon to be) 38 footer, which may well end up (thanks to the advice on this forum) being parked somewhere in the Algarve. Anyone know what the insurance position is if I let a few well tested, properly qualified friends have use of her for a small consideration (not necessarily in hard currency - help with equipment or mooring fees, etc). And apart from the risk of damage (no greater than mine I guess) are there any other considerations?

Anyone done it / doing it?

Forget it. You will need to comply with local requirements to operate as a charter boat, which pretty sure you will find far too onerous to justify unless you are doing it commercially. If your boat is UK registered it will also need to be coded to UK requirements to be legal. Insurance is the least of your problems, operating within the law is the challenge - and penalties for operating outside the law potentially severe.

 

[Barnacle Bill]

'Charter' is probably a non-starter for all the reasons mentioned above.

But if you allow the boat to be used by a group of friends, who arrive from the UK and carry written permission from the owners in case they are challenged by the authorities, that's not commercial is it?

Re insurance, ask the company - I had a few queries like this and Pantaenius were flexible and helpful.

 

[maby]

Advertising it will definitely be out. If they are genuine friends and it all goes smoothly, then nobody is going to know about it other than you and them. If something goes wrong and someone gets injured or loses property, how well do you trust them to keep quiet about the nature of the arrangements?

 

[GrahamM376]

Does it make a difference if he's in Portugal?

Doing it in Portugal is far more risky than in the UK due to possible policia maritima spot checks. Not sure how people get on if ownership papers don't match passports but it could be a problem if there's no formal agreement or letter of authorisation. Also, as already said, except for cost sharing any charge is illegal without coding and insurance. Don't believe any payment will be kept quiet, people soon drop you in it when things go wrong and genuine charterers will shop you.