Charter Agreement?

[Andrew Kiteley]

Hello Viper Community,  after a few searches on the forums I wasn't able to find a sample 'Charter Agreement' document. Maybe I am looking in the wrong spot. Thanks in advance for your direction and guidance. Andrew Kiteley #58 ([email protected])

[Peter Beardsley]

Before you go through the trouble of a charter agreement, check your insurance policy to see whether charters are covered.  Most of the time you'll be covered for loaning your boat to an authorized user (free of charge), but will need separate endorsements to cover charter liability.  If you're not getting any money from the "boat charter" (aka, likely boat loan to friend), it's usually not worth the trouble of formally documenting a charter arrangement.  You should set some basic ground-rules though on expectations of who covers damage, whether they'll agree to cover your deductible, etc.  That can be done in an email handshake agreement though.**

**not official legal advice, freelancing during my day job right now, no attorney-client relationship is formed by this post

[Andrew Kiteley]

Good stuff Peter, thank you!

[Drew Harper]

I run a charter company (38 years now).  Be UBER careful here. If you have deep pockets in the slightest, don't do it. If they hurt or kill someone on the race course you are mucked up in the middle of it all and they WILL try to get your assets. No two ways around this. If you must charter, invest in sufficient umbrella to cover your ass. The umbrella will cost more than your charter fee...FYI.

If you take $.01 for anything to do with it, it's a charter and you're exposed.

[Justin Scott]

The Viper is a One Design Class affiliated with US Sailing and we are part of the US Sailing One Design Insurance program with Gowrie insurance.

Gowrie and USS have designed a tried and tested insurance policy to cover charters. It is reasonably bullet proof (meaning they have already met claims under this policy and it was designed to meet all the eventualities that have occurred so far).  If you are already insured with Gowrie USS one design, then adding charter coverage is reasonably inexpensive.

The agreement is important.  You should insist that the charter party obtain coverage (preferably through Gowrie or whoever is your insurer) and add charter coverage yourself. If both charter party and owner are insured with the same underwriter, it is going to make life a lot easier (they are meeting the claim either way).

There are some fairly standard charter agreement forms around. Its not rocket science and many events have charter boats. I dont have one to hand.