Risk & Protection
Charter involves real risk — but every significant risk has a systematic solution. Here is the complete protection framework.
Quick diagnostic
How would you describe your yacht?
Insurance Requirements
Commercial charter requires insurance beyond standard pleasure craft cover. Mandatory: hull and machinery insurance with commercial operation cover (most pleasure craft policies exclude commercial use), P&I (Protection & Indemnity) with minimum €3M third-party liability for day charter and €5–10M for overnight crewed charter, and crew employer's liability. Recommended: guest personal accident cover, charter loss-of-income cover (replaces lost booking revenue during extended repair), and uninsured loss recovery. Review your policy annually — insurance gaps are the most financially catastrophic risk in charter operations.
Commercial use
Hull & machinery
€5–10M
P&I minimum
Required
Crew liability
Watch out
A pleasure craft policy that excludes commercial use will not pay out if a guest is injured during a paid charter. This is the most common and most costly insurance mistake charter owners make.
Damage Protection
Standard charter protection: a damage deposit of €3,000–€20,000 (depending on yacht value) is held in escrow throughout the charter. Any damage must be documented with photos and repair quotes within 5 days of charter end. For minor damage below the deposit threshold, the deposit covers the claim. For major damage, hull insurance and the guest's travel insurance are the mechanisms. MYBA standard contracts specify the process clearly. Platform-intermediated charters provide neutral third-party mediation — a significant advantage over direct bookings.
€3k–€20k
Damage deposit
5 days
Claim window
Pro tip
Photograph every space of the yacht before each charter with a timestamp. This documentation is your primary evidence in any damage dispute.
Contract Protection
The MYBA standard charter agreement provides symmetric protection for both parties, is enforceable across all Mediterranean jurisdictions, and covers: delivery and redelivery conditions, APA estimation and reconciliation, force majeure provisions, cancellation terms and refund matrix, damage claim process, and jurisdiction for dispute resolution. Never operate a paid charter on a verbal agreement or a non-standard contract drafted by one party.
Watch out
Verbal agreements and informal contracts are unenforceable in most Mediterranean jurisdictions. A €40,000 charter without a signed contract is a €40,000 gamble.
Fraud Prevention
Pattern 1: a 'guest' pays a partial deposit, requests a cancellation, then demands a refund to a different account (chargeback fraud). Pattern 2: a 'listing platform' charges upfront fees with no guaranteed bookings and no verifiable track record. Pattern 3: a broker transfers a booking but has not disclosed their commission to the guest, creating a dispute liability for the owner. Prevention: never refund to accounts other than the original payment source, never pay upfront listing fees, and confirm that any broker has disclosed fees to the guest.
Pro tip
Process all payments through traceable channels (bank transfer or Stripe) with clear reference identifiers. Never accept cash for charter fees.
Platform Guarantee
As a Sevendocks partner, you receive: full MYBA-standard contract generation for every booking, escrow management for deposits and damage funds, pre-screened guests with verified identity and confirmed budget, mediation support in guest disputes, a dedicated owner success contact, and platform insurance covering errors in our booking management process. Contractual commitment: if a platform-confirmed booking fails to generate payout due to an error on our side, we cover the shortfall.
Start Here
Use our owner optimization guides to understand your yacht's full earning potential before you take the next step.
