Am I covered by insurance?
Trip Interruption or Cancellation Insurance
Charters can cancel or be interrupted for a number of reasons and charter contracts do not contain provisions for all possibilities. None of them make it easy to get a refund of any kind, and it gets more costly to cancel the closer to the charter date. Trip Interruption or Cancellation Insurance can provide reimbursement for cancellations or interruptions due to a number of different causes including weather, illness, business reasons, some medical emergencies and repatriation. Some policies can be purchased which will cover cancellation for ANY REASON. Typically, the coverage begins as soon as the policy is purchased, and generally costs less than 5% – 10% of the charter fee.
Liability insurance is a product that you can purchase that covers your third-party exposure during the entirety of the charter, and potentially for claims that arise after the charter contract expires. The charter contract does not limit your total financial obligation – it limits your obligation to the Owner. Liability Insurance can help mitigate his risk in the event of a loss.