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Tag Archives: trip cancellation insurance

10 Reasons for Luxury Yacht Charter Customers to Purchase Travel Insurance

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Anyone who has booked a Benetti yacht charter or a Feadship yacht charter vacation knows that charter agents heavily promote trip cancellation insurance.For mega yacht charter agents, trip cancellation insurance is a substantial profit point.  Commissions of 20% of the insurance cost for selling this product for a Feadship yacht charter or a Benetti yacht charter are common.

Charter brokers often offer this coverage to their Caribbean yacht charter customers who fear trip delays due to summer tropical weather disturbances.   Mediterranean yacht charter customers also hear the pitch to purchase this coverage, as concerns for lost baggage are common with long, international flights.

Putting aside the fact that someone “profits” from the sale of these policies, a luxury yacht charter customer should give serious consideration to this coverage option.  Whether you rent a private yacht, a megayacht, or a superyacht, for a Caribbean yacht charter or elsewhere, or whether you plan crewed catamaran charters or sail boat charters – the facts remain the same: you are spending a lot of money and you may wish to protect your investment!

There are hundreds of circumstances that could cause you to cancel your trip, return home early, or force you to seek emergency medical treatment while traveling.  What if you booked a MIPIM yacht or a Monaco Grand Prix yacht for the yearly event in Cannes and Monte Carlo, and suddenly you could not attend?

To demonstrate the importance of purchasing travel insurance, and emergency travel services, here are 10 common examples of what could go wrong.

  1. CANCELED FLIGHTS — It’s 10 p.m. and you and your immediate family arrive at the airport for a connecting flight, only to find that your flight has been cancelled. Who can assist you with finding new flights to get everyone home?
  2. INSULIN IN LOST LUGGAGE — Your bag is lost with your insulin inside. You need help to locate your bag as soon as possible and have your emergency prescription filled. Who do you call?
  3. PASSPORT AND WALLET STOLEN — It’s your first visit to Europe, and your passport and wallet are stolen before you board your Monaco Grand Prix yacht. Where do you turn for emergency cash, and how will you get your passport replaced?
  4. MEDICAL EVACUATION NEEDED — You’re involved in an accident during your Benetti yacht charter, and adequate medical treatment is not available. Who will help arrange and pay for a medical evacuation?
  5. ILL CHARTER PARTY MEMBERS — Your sister-in-law becomes seriously ill and you must cancel your MIPIM yacht trip. What happens to your non-refundable deposits or pre-payments?
Marina of yachts
6.  LOST LUGGAGE — You arrive for your Feadship yacht charter in Jamaica, and your luggage doesn’t. If it’s lost, who will help you find it? If it’s delayed, who will pay for your necessities? If it’s stolen, who will pay to replace it?
Woman sitting on an empty baggage carrousel holding head - lost luggage

7.  BANKRUPTCY OF TOUR OPERATOR — Your luxury sailing charter tour operator goes bankrupt. Who will pay for your non-refundable expenses? Who will help get you to your destination?

8.  MEDICAL HELP NEEDED — You’re walking down a street in Rio and twist your ankle. Who can help you find an English-speaking physician?

9.  TERRORISM — Three weeks before your scheduled arrival for your Croatia yacht charter, a terrorist incident occurs in the city that you are planning to visit. Who will pay if you want to cancel your trip?
10. HURRICANE — You are at a beach resort in the Florida Keys during your luxury sailing charter vacation, and you are forced to evacuate due to an approaching hurricane. Who will help you evacuate and who will reimburse your lost vacation investment?
There are so many circumstances where your vacation may be interrupted.  It’s important to understand your options to safeguard your holiday investment.  Remember travel insurance is optional and should be analyzed before each vacation begins.

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Travel Insurance – Should You Buy It?

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Photo of a young woman sitting on a baggage claim carousel. She has her head in her hands. There is no luggage on the carousel.

Should you purchase travel insurance to protect the money you have spent on a luxury yacht charter?  The answer seems to vary, depending upon who you ask.  Many travel agents and consumer advocates advise travelers to buy it, while many others say to skip it.

Adding to the dilemma is the difficulty for consumers to understand the components of the insurance.

Typically, there are three components of most travel protection plans – trip cancellation/interruption, personal effects coverage, and emergency medical insurance. Let’s review each of these.

1.  Cancellation Insurance – Coverage can cost anywhere from 5 to 8% of the total cost of travel. For example, travel insurance for a $10,000 Virgin Islands yacht charter vacation would cost between $500 and $800. Before purchasing this insurance, consider the fact you might already be covered under insurance you already have.

If you paid for your trip with a credit card, look into the trip cancellation benefits provided by your credit card company.  Many card companies include some coverage.

2.  Personal Effects – The protection  for personal effects offered in travel insurance plans may also be redundant. Your homeowner’s plan may cover the loss of personal effects when traveling. (REMEMBER – you are probably responsible to pay any loss amount up to the deductible).

What about lost luggage?  Again, you may already be covered, as most airlines reimburse up to $3,300 for lost bags on domestic travel and $1500 for international travel.

If your purchased your flights with a credit card, some credit cards provide lost baggage coverage as well as protection for car rental losses.

3.  Emergency Medical –  This gets tricky.  It is advisable to consider additional travel medical insurance to cover medical emergencies, particularly IF you plan to participate in higher risk activities such as water skiing, scuba diving, and riding personal watercraft, such as waverunners, when traveling abroad.

Let’s say you are on a crewed catamaran charter in the Caribbean.  If you need emergency medivac and treatment, these costs may not be covered by your existing medical insurance.

Jana Sheeder, a yacht charter industry maven and President of 1-800 Yacht Charters and SailAway Yacht Charter Consultants, encourages travelers to check with their existing health insurance provider to determine what is covered when they travel.  It takes only a few minutes to contact them, and it could potentially save you thousands of dollars (and headache).  Says Sheeder,

If your plan does not offer coverage when you are abroad, give serious consideration to purchasing additional medical coverage.”

For more information, visit the website InsureMyTrip.  They represent over 20 insurers with various plans and prices.

So what’s the bottom line?  The financial loss incurred by a cancelled charter is a risk many people can accept, so trip cancellation insurance probably IS NOT necessary;  however, the consideration of medical coverage requires more thought and research.  Major items not covered in your family’s medical plan may necessitate the purchase of travel medical insurance.

How do you feel about travel insurance?  Would you purchase it for your yacht charter vacation or not?  Please share your opinion with us at https://www.1800yachtcharters.com/book-now-contact-us/

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