Can I Charter My Yacht? What to Know About Coverage and Risk

Chartering your yacht can sound appealing—offsetting ownership costs, keeping the boat active, or even generating income. But before listing your vessel or accepting paying guests, there’s an important question to answer:

Does your insurance allow it?

In many cases, the answer is no—not without changes to your coverage. Chartering introduces commercial exposure, and standard yacht or boat insurance policies are typically designed for private recreational use only.

Here’s what yacht owners should understand before chartering a vessel.

Disclaimer: Boat and yacht insurance coverage varies by company and policy. The information below is general and may not reflect the exact features or limitations of your policy. Always review your policy documents or speak with a licensed agent before chartering your vessel.

What Counts as “Chartering” a Yacht?

Chartering generally means receiving compensation in exchange for use of your vessel. This can include:

• Bareboat charters
• Crewed charters
• Day charters
• Overnight or multi-day charters
• Any arrangement where money, goods, or services are exchanged

Even informal situations—such as “splitting costs” or accepting payment through a platform—can be considered chartering by an insurer.

Once money changes hands, your boat is typically no longer considered personal-use only.

Why Standard Yacht Insurance Often Doesn’t Allow Charters

Most personal yacht policies are written with the assumption that:

• The owner or approved operators are in control
• The vessel is used recreationally
• Liability exposure is limited to non-commercial use

Chartering changes the risk profile significantly. More people onboard, unfamiliar operators, and frequent use increase the likelihood of accidents, injuries, and claims.

Because of this, chartering is often excluded under standard yacht insurance policies unless specifically endorsed or rewritten.

What Coverage May Be Required to Charter a Yacht

If chartering is allowed, coverage may need to be adjusted to account for commercial exposure. Depending on the situation, this can include:

• A commercial or charter yacht policy
• Higher liability limits
• Crew coverage (if crewed charters are offered)
• Passenger injury liability
• Different navigation or usage limits

In some cases, a policy may allow limited charter use, while others require a fully commercial marine policy.

Risks of Chartering Without Proper Coverage

Chartering a yacht without the right insurance can expose you to serious financial risk.

Potential consequences may include:

• Denied claims following an accident
• No liability protection for passenger injuries
• Out-of-pocket repairs to the vessel
• Policy cancellation after a loss
• Legal exposure if someone is hurt

Even a single charter trip can trigger coverage issues if the insurer determines the vessel was being used commercially.

Example Scenario

You decide to charter your yacht for weekend trips.

During one outing, a guest slips on deck and is injured. They file a claim for medical costs.

If your policy excludes chartering:

• Liability coverage may not apply
• Legal defense may not be provided
• You could be personally responsible for damages

With the correct charter-appropriate coverage in place, the outcome may be very different.

Is Occasional Chartering Ever Allowed?

Some insurers may allow limited charter use, but this varies widely. Factors that often matter include:

• How often the yacht is chartered
• Whether a licensed captain is required
• Number of passengers
• Type and size of the vessel
• Where and how the yacht operates

Because rules differ by carrier, assumptions can be costly.

Bottom Line

You can charter your yacht—but only if your insurance allows it.

Chartering changes your exposure from personal recreation to commercial operation, and that distinction matters. Before offering your yacht for hire, reviewing your coverage is essential to avoid gaps, denied claims, and unexpected liability.

Thinking about chartering your yacht?

Get a free yacht insurance review or quote from Sun Coast General Insurance Agency to understand your coverage options before you set sail.