What Is Charter Boat Insurance?
What do you call a vessel that can be rented? That boat is called a charter boat. You can use the boat for fishing or for a particular short voyage. Law requires that there be charter boat insurance. These vessels should be insured whether they are engage in chartering full-time or occasionally.
A charter party not a person but it is a contract between the owner of the boat and another person. There are many variations between the contract that the owner and the third party can choose to enter into. The most common is that the owner of the vessel can rent out the whole boat itself without the crew members and leave the boat under the total command of the third person for a specified period of time. The third person will be the one to look and hire for his own crew. Or in another scenario, the owner of the vessel can opt to rent the boat and the crew remains in the boat. The crew will be under the command of the third party during the voyage or for a specified time. But as long as you are engaged in a charter party no matter what your contract provides, you should insure your charter boat.
As discussed above, there are many types of charter parties. Charter boats are required to be insured basing from the belief that owners of the vessel will not take full responsibility to other people’s actions in case damages and accidents would occur. Vessel owners do not wish to escape charter boat insurance. Control and usage of the boat will fall into different the hands of the person that the owner of the vessel entered into contract with, a charter boat insurance is a necessity in this field of business!
The nature of charter boats makes their insurance rates higher than the standard boat insurance rate. This is understandable on the part of the insurance company. But with a second look charter boat insurance are more extensive than the standard insurance. This spells double advantage for the owner of the vessel.
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