CharterXO

Charter Insurance

Commercial marine insurance covering a charter vessel, its passengers, crew, and third-party liabilities during paid trips.

Charter insurance is a commercial marine insurance policy covering a vessel, its crew, its passengers, and associated liabilities during paid chartering activity. Recreational ("pleasure use") boat insurance specifically excludes charter activity, so any listing on CharterXO or a comparable platform must be covered under a genuine commercial policy.

A commercial charter policy typically bundles Hull & Machinery (covering the vessel itself), Protection & Indemnity (covering third-party liability), and often adds Charterer's Liability. Passenger Legal Liability coverage of at least $1,000,000 is common for day charters and effectively a baseline requirement on reputable platforms.

Specialty marine brokers handle most charter insurance placements because the risk profile and required endorsements are materially different from pleasure boating.

Examples

  • A 45-foot yacht owner pays ~$7,500/year for a commercial charter policy with $1M P&I.
  • Switching from pleasure use to charter use requires notifying the insurer and usually re-underwriting.

On CharterXO

CharterXO requires every listing to carry a current commercial charter insurance policy with a minimum $1M passenger liability. Certificates of Insurance are uploaded at listing time.

Related Terms

Hull Insurance—Marine insurance covering physical damage to or total loss of the vessel itself.Liability Insurance—Marine insurance covering legal liability to third parties for bodily injury, property damage, or environmental harm.P&I Insurance—Protection & Indemnity insurance covering third-party liabilities arising from vessel operations.Bareboat Charter—A charter where the customer leases a yacht without crew or captain and assumes full operational responsibility for the voyage.

References

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