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“When these difficult times return to normal, our family is interested in booking a yacht charter for late summer in Greece.
We’re worried if unforeseen coronna (sp) virus issues could arise we might be forced to cancel, and we don’t want to lose our deposits.
Is there anything we can do to protect ourselves?”
-Vanessa A, East Fallowfield, PA
“Hi, Vanessa. The short and simple answer is:
‘YES. There are things 1-800 Yacht Charters can do to protect you should you need to cancel your charter due to Covid-19 issues.’
There are insurance products available for trip cancellations, but they are not uniform in their coverage options. I have developed and implemented a 2-part strategy to protect our clients.
1. FREE Cancellation Policy (penalty-free Covid-19 refund policy)
2. Modified Charter Contracts with a Covid-19 protection addendum
You can stop reading here, and know we’ve got your back. Please read on, if you want a more in-depth explanation…”
As a general rule, yacht charter contracts are written to protect the yacht owner and his/her asset (the yacht). This is in the event of damages or cancellations. The rationale is simple. Specifically, the client may be paying thousands of dollars to enjoy a vacation on a yacht. However, the owner’s exposure is far greater. Moreover, many yachts are worth millions of dollars. Owners wisely use a well-crafted, legal charter agreement to protect themselves.
One example of how owners protect themselves is known as the “Force majeure provision.” This clause is inserted into most luxury yacht charter agreements. It gives the owner the right to cancel a charter due to “Acts of God.” These are acts/events that prohibit the yacht and crew from proceeding with the charter.
This relates to the Covid-19 virus situation. Under the force majeure provision, a yacht owner has to return the charter money to the customer. This is if the yacht cannot perform due to marina closures, virus-infected crew members etc. That’s good news for the charter customer. However…
IF the charterer is the one who cancels, things work differently. Even due to Covid-19 issues (for instance, due to a quarantine or flight cancellation), the Owner has the right to claim ALL of the installments paid and due from the Charterer. In other words, the Charterer forfeits any and all monies paid to date for the charter! The owner is not obligated to reschedule or to give the funds back.
We believe that the force majure provision is the main reason potential charterers withdrew their inquiries for spring and early summer. Some clients willingly canceled their trips. They know they would lose their initial deposits. They wanted to stop the bleeding now. Stop it before second and third deposits were due as the charter dates draw closer.
1-800 Yacht Charters now offers a penalty-free Covid-19 refund policy* on a large selection of luxury charter yachts. To insure the yacht owners comply, we prepare an addendum to the standard charter agreement. This addendum clearly states the owner of the yacht agrees to a full refund. This is if the charterer is forced to cancel due to Covid-19 issues.
Now charterers can protect their deposits in 2 ways. They can either reschedule their trip(s) to a future date or receive a complete refund.
Would you like to review the Covid-19 charter addendum? Send an email request to firstname.lastname@example.org today. Please include your full name and phone number in your email. In conclusion, we have your back. Our team at 1-800 Yacht Charters values your business and vacations. We protect you.
*This new policy does not apply to all yachts. It also may depend upon the charter destination and charter dates. Certain restrictions apply. Please check with your yacht charter consultant before proceeding with your reservation. More importantly, clarify this before making any deposits or payments.
This entry was posted in News Educational and tagged president of 1-800 Yacht Charters, trip cancellation insurance, Jana L. Sheeder, Covid-19, client protection, contract addendum, Force Majeure, contract clauses, luxury yacht charter agreements, owners rights, client rights, yacht charter client rights, yacht charter owner rights, Acts of God, strategy, yacht charter refunds, trip cancellation, how am i protected for yacht charter booking?, What if I cancel my yacht charter?, 1-800 Yacht Charters opinion, How does Force Majeure Provision work?Posted on