Charter contracts are deliberately rigid on cancellation, and that rigidity catches clients off guard more often than any other clause in the paperwork. Knowing the shape of it in advance — what's covered, what isn't, and where insurance fits — is one of the more useful things an advisor can walk a client through before signing.
What force majeure actually covers
Force majeure in a charter contract means unforeseeable circumstances outside either party's control: natural disasters, war, significant government action, pandemics, and similar large-scale events. It's a narrower definition than clients sometimes expect — a change of personal circumstances, a scheduling conflict, or simply changing one's mind doesn't qualify, however inconvenient the timing.
If the owner cancels for force majeure
Only the owner holds the right to cancel for force majeure reasons. Where that happens, the charterer is generally entitled to the return of any fees already paid, but typically can't claim additional damages on top — the same event that stops the charter from going ahead is, by definition, outside the owner's control too.
If the owner cancels for any other reason
This is a different situation entirely. A non-force-majeure cancellation by the owner generally entitles the charterer to a full refund plus damages, with the damages typically scaled based on proximity to the charter's start date — the closer to departure, the stronger the charterer's position. It's worth an advisor being clear with clients that these are two very different outcomes depending on the reason for cancellation, not one blanket "cancellation policy."
Notification windows matter
Under the current MYBA framework, a force majeure cancellation generally needs to be notified within 48 hours and supported with documentary proof within seven days, or the protection can be forfeited. These aren't generous windows, and it's a detail worth flagging to a client rather than assuming it'll be handled automatically.
Where travel insurance fits
None of the above covers a client needing to cancel for their own reasons — illness, a change of plans, anything on the charterer's side rather than the owner's. That's what travel insurance is for, and it's standard practice for advisors to provide a quote alongside the booking rather than treating it as optional paperwork. Given how rigid charter contract language tends to be on the client-cancellation side, insurance is often the only real flexibility a client has.
Where this fits with the rest of a booking
This sits alongside the APA and security deposit, crew gratuity and VAT conversations as one more thing worth covering early rather than leaving to be discovered in the contract — see our travel advisors guide for the wider picture.
Details on how the referral relationship works are on our partner page, and day-to-day logistics are covered on our concierge page.