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Demise Charter Insurance provides specialized protection for yacht owners who lease their vessel under a demise (or bareboat) charter agreement, where full possession, control, and responsibility are temporarily transferred to the charterer. Under a demise charter, the charterer acts as the vessel’s owner for the duration of the agreement—taking on operational, financial, and legal responsibility.
This policy safeguards both parties by covering hull damage, third-party liability, pollution, salvage, and personal injury claims that occur during the charter. For owners, it ensures the vessel remains financially protected while in another party’s care. For charterers, it provides the necessary insurance to legally operate and manage the yacht without assuming unprotected risk.
Because the charterer becomes the “owner pro tempore,” Demise Charter Insurance is structured to protect against the heightened exposures that come with that level of control and responsibility.
We design policies that balance both parties’ interests — protecting the yacht’s value while providing full liability coverage for the charterer’s operations.
Our policies meet the requirements of flag states, marinas, lenders, and port authorities, ensuring charters run smoothly and legally.
Whether for a single week or an entire season, we tailor your coverage period and geographic limits to match your specific charter terms.
We work directly with insurers experienced in commercial and private yacht charters, ensuring fair terms and seamless claims support for all parties.
It protects against damage, liability, and total loss during a demise charter, when vessel ownership remains with the owner but operational control transfers to the charterer for a specific period.
The charterer assumes full control over the vessel’s operation, crewing, and maintenance, while the owner retains ownership and a financial interest protected by the insurance policy.
Because the vessel changes hands operationally, both the owner and charterer face unique risks. This coverage ensures financial protection and liability clarity during the charter period.
Coverage may include Hull & Machinery, third-party liability, and pollution or wreck removal protection. Both the owner and charterer are usually listed as joint insured parties.
Yes. Insurers often require vessel surveys, maintenance logs, and navigational experience documentation before approving coverage. These verify the vessel’s condition and operational readiness.
Common exclusions include breach of charter conditions, negligent operation, unapproved navigation, or mechanical breakdown due to poor maintenance. Compliance with all contractual terms is required.
Unlike time or voyage charters—where the owner maintains control—Demise Charter Insurance applies only when operational command and possession transfer to the charterer, creating distinct liability and insurance obligations.
