Indeed. When I chartered a Beneteau 33 from them earlier this year, there was a $2700 damage deposit on the boat. While thats more than 1% of the 33's value, they probably have a formula that keeps them whole. Probably including lost charter revenue or lost use to the owner.
From my last charter contract re: insurance coverage.
"Next Charter: Client pays for subsequent lost charter fees while a repair is undertaken, necessitated by actions on the clients charter." Also: "Damage & Repair or loss due to: operation outside authorized boundaries, illegal activity, willful damage,
gross negligence." I take it, if the damage exceeds the 1% (or by whatever formula used), charterer gets to pay the full ticket.
Now that you mention, I think there was a formula--perhaps not a strict, straight-line percentage. However, on this last charter of mine they swiped me card for $3,750 deposit (4-year-old Hanse 495), and I had the additional charter protect coverage which buys down the deductible liability to 50% of full deductible for hull and machinery. The full deductible was $7,500 which at 1% would suggest a hull value near $750K for that yacht
.
But, I typically do not sail near battleships, submarines, or aircraft carriers!!