So what is the Security Deposit?
All charter yachts are fully insured against damage to hull, gear and equipment as well as for third party liability ( that yacht’s insurance does not cover your personal belongings and injuries). The security deposit is to cover in the unforeseen event any possibility of any damages which are not covered by the insurance of the yacht.
When do you need to pay the security deposit?
The yacht security deposit is a security payment made to the yachting company at check-in of the yacht. It can be paid in cash or using 1 or multiple credit cards. It may be used against any damages caused by you to the yacht during the week. If there is no damage to the yacht at check-out the amount will be fully refunded.
It is exactly how you do when you rent a car or a house.
The security deposit serves as a form of insurance for the yacht owner or charter company. It ensures that they are financially protected in the event of any damage caused by the charterer or any other unforeseen circumstances. The deposit acts as a guarantee that the charterer will fulfill their obligations and take good care of the yacht during their time on board.
The amount of the security deposit varies depending on the size and value of the yacht, as well as the duration and location of the charter. It is important for charterers to carefully read and understand the terms and conditions of the charter agreement, including the security deposit clause, to avoid any surprises or misunderstandings.
How to minimize the deposit losses?
To ensure a smooth and hassle-free process, it is advisable for charterers to document the condition of the yacht before and after the charter period. This includes taking photos or videos of the yacht’s interior, exterior, and equipment. This evidence can be used as proof in case of any disputes regarding the security deposit. Additionally, charterers should communicate any damages or issues to the yacht owner or charter company as soon as they are noticed, to avoid any misunderstandings or further complications.
If you have an internal skipper (from your crew), then you need to discuss with him all options regarding the security deposit. He can be responsible for damages occurred during anchoring or docking, unless he gets no help from the rest of the crew. You need to clarify from the beginning how the cost of the damage will be split, if he covers or all the crew splits the possible costs.
If you have an external skipper that is paid for his work, either a skipper from the charter company or recommended by us, they will be responsible for such damages in most cases. Make sure you discuss this matter with at the check in of the yacht, when you are requested to pay for the security deposit.
Many charter companies offer a deposit waiver. This can be a fixed amount between 3-600 eur which are non refundable. The deposit will go down to 1000 eur or even to 0, being a deal that the charter companies offer directly to the client. Once you book your vacation with us, we will make sure we will discuss with the charter company in order to accept an offer from you for the waiver, if available.
The skipper, professional or from your own crew, can apply for a deposit insurance with one of the specialized insurance companies. We have worked in many occasions with Pantaenius. You will pay the deposit to the charter company, but in case anything will happen, with the damage report from the charter company you will apply to the insurance company and recover the payments you made. Depending on the deposit amount, the cost for a deposit insurance is between 150-350 eur per week.