Charter & Commercial Cover
Purpose-built insurance for vessels operating commercially in Asian waters
Operating a vessel for commercial charter — whether bareboat, skippered, or liveaboard — requires commercial marine insurance that differs fundamentally from private yacht cover. Asian authorities are increasingly enforcing the distinction, with significant penalties for vessels operating commercially under private policies.
What's Covered
- ✓Commercial hull & machinery at commercial rates
- ✓Commercial P&I covering passengers and crew
- ✓Charterer liability
- ✓Loss of hire coverage (revenue during repair period)
- ✓Passenger liability under local maritime law
- ✓Commercial wreck removal
What's Not Covered
- ✗Private use claims under a commercial-only policy (requires combined cover)
- ✗Non-disclosed commercial activity under a private policy (voids claim)
Typical Cost
2.0%–4.0% of vessel value per annum for commercial coverage in Asian waters
Ideal For
Yacht owners operating bareboat, skippered, or liveaboard charters in Asian destinations
Commercial Operations and Insurance Compliance in Asia
Asian maritime authorities are tightening enforcement of the boundary between private yacht and commercial charter operations. Thailand, Indonesia, Malaysia, and the Philippines all have regulatory frameworks that distinguish between private pleasure vessel operations and commercial charter services — and the insurance requirements differ significantly.
A vessel operating commercially (taking paying passengers or guests who contribute to vessel operating costs) under a private yacht policy is likely uninsured in the event of a claim. Private policies typically contain a commercial exclusion clause that voids coverage when the vessel is used for commercial purposes, including informal "cost-sharing" arrangements that regulators may classify as commercial operations.
Commercial charter insurance in Asian waters typically includes:
Commercial Hull & Machinery: Rated at commercial (higher) rates reflecting the increased use intensity and higher risk profile of charter operations.
Commercial P&I: Covers passenger liability under the Athens Convention and local maritime law. Minimum limits required by Asian port authorities for commercial vessels typically range from USD 250,000 to USD 1,000,000 per passenger incident.
Loss of Hire: Covers loss of charter income during the period a vessel is out of service for covered repairs. For vessels whose owners depend on charter income, loss of hire coverage converts an insurance event from a financial catastrophe to a manageable interruption.
Frequently Asked Questions
Can I take paying guests on my privately-insured yacht in Asia?
No — commercial operations including taking paying guests require commercial marine insurance. Operating under a private policy when carrying paying passengers typically voids your insurance and may violate local maritime law. Submit a quote request to discuss commercial coverage options.
What is loss of hire cover and do I need it?
Loss of hire covers your lost charter revenue while your vessel is being repaired after a covered event. If your charter income is significant, loss of hire protection is essential to maintain cash flow during the repair period.
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Including Charter & Commercial Cover