Do you recommend travel insurance to your charter clients?
We have always offered travel insurance and recommended that our charterers consider
it carefully. While we don’t feel it is essential in all cases, every guest should
review their personal situation and make an informed decision. A yacht charter represents
a notable investment and, once booked, charter fees paid are largely non-refundable
in the event of cancellation.
Additionally there are certain situations in which we would strongly advise getting
insurance. If anyone in the group has any health concerns, either for immediate
family members or themselves, they should purchase insurance. Most good travel insurance
policies offer pre-existing condition waivers. Anyone chartering in the Caribbean
from July through October should buy travel insurance that covers named storms,
but be sure to read the fine print carefully—many policies have loopholes. Some
yachts require the purchase of insurance if chartering during hurricane season.
In general, we always suggest trip insurance to our clients. The charter fee is
non-refundable unless the exact dates are rebooked (or prorated for any portion
rebooked). There are a few different scenarios where insurance can be very useful.
One might be that you live in the Northeast United States, a major snowstorm cancels
flights for two days, and you cannot get to the boat until Day 3. Clients usually
can't just stay longer if they need to be back to work, so being refunded for the
unused days is a big relief.
Clients with medical conditions are aware of how important insurance can be in terms
of reasons to cancel, or in case of medical evacuation. But insurance does not have
to be for your own health. If your parents are in frail health and you could be
called home unexpectedly, insurance really helps ease their minds. The same applies
for clients with young children being left at home.
In the case where a group of friends charter together, each couple may have a different
concern. So you can buy for your portion of the trip and know you are not leaving
your friends short on the charter fee or causing hard feelings over the payment
if one couple needs to cancel for a covered reason.
Of course we do have clients who have never had an issue and see the insurance as
a needless expense. Although we point out the risks so they understand, the insurance
is an individual's choice.
Travel insurance has improved dramatically in the last few years. There are now
policies specifically tailored to yacht charter clients, and they offer some very
impressive benefits that include:
• Protection against illnesses or death in the immediate family. The full charter
fee is covered.
• Medical evacuation up to $500,000 per person. This is a huge benefit when you
are cruising in exotic destinations and have a medical emergency. A young, healthy
client had an attack of appendicitis in the South Pacific and needed air evacuation.
Another with no history of medical problems recently had a stroke and needed immediate
evacuation. Travel insurance covered these expenses.
• Primary medical coverage of $25,000 per person is also provided. Even if you have
insurance, when you are in another country it is a great benefit to have insurance
that authorizes immediate treatment and pays directly for the service needed.
• Cancellations due to hurricanes and other natural disasters—like the recent volcano
eruptions in Iceland.
• Terrorism at the charter destination as defined by the U.S. State Department.
There is a link on my website where clients can review options and levels of coverage
and decide if this is something they want. The combination of medical benefits and
coverage for non-refundable charter fees in the event of family emergencies make
travel insurance something every client should at least consider.