A damage waiver is a fee you pay the charter company to lower your security deposit. It works like insurance: if the yacht is damaged during your charter, you risk losing a much smaller amount than the full deposit.
Why a damage waiver can be worth it
The security deposit protects the owner if the yacht is damaged. Accidents happen, even to careful crews, and without a waiver you can lose a large part of the deposit over one bad moment in a harbor. With a waiver, the amount at stake is smaller.
How a damage waiver works
You pay the waiver fee, and the charter company reduces the deposit it holds. What the waiver covers depends on the charter company and its terms. Some waivers exclude certain kinds of damage or have limits, so read the conditions before you pay and check what you would still be liable for.
Is a damage waiver mandatory?
That depends on the charter company and your rental agreement. Some charter companies require a damage waiver on every booking, others offer it as an optional extra. If it is optional, it is still worth considering.
Damage waiver or deposit insurance?
A damage waiver is not the only way to protect your deposit. You can also insure the deposit itself with our partner Sealogy. We compare the two in What additional insurance should I purchase for my boat rental or yacht charter?
