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Covid-19 UPDATE. Yacht Charter Maven Policy

QUESTION

“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

 

Photograph of Jana Sheeder, President of 1-800 Yacht Charters

ANSWER

“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…”

Jana L Sheeder, President, 1-800 Yacht Charters

 

 

CHARTER CANCELLATIONS – THE PROBLEM

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.

Understanding Force Majeure in Yacht Charter Agreements

 

 

HOW DOES FORCE MAJEURE PROVISION WORK?

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 CANCELS

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.

 

OUR OPINION

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.

 

CHARTER CANCELLATIONS – THE SOLUTION

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.

 

WANT MORE INFO?

Would you like to review the Covid-19 charter addendum? Send an email request to info@1800yachtcharters.com 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.

 

 

TO WHAT DOES THE * (ABOVE) APPLY?

*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.

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About Jana Sheeder

1-800 Yacht Charters. Providing The Superyacht Experience since 1976. Luxury yacht charter vacations in the Mediterranean, Caribbean, Bahamas, South Pacific, South Florida, Miami and the Keys, Italian Rivera, Belize. Megayacht charter company focused on generosity, Pay it Forward, Random Acts of Kindness, giftivism, giving back to the ocean, to the needy, and the environment with every superyachting charter. Providing eco-friendly alternatives while on yacht charters and known for 6 star customer service, experience, and generosity.

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