Bareboat Charter Regulations & Compliance Information
What is a Bareboat Charter?
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A bareboat charter, also called a demise charter, is a rental arrangement where the vessel is provided without any crew. During the charter period, the renter becomes the vessel’s temporary owner, taking full responsibility for its operation, navigation, and safety. The charterer must hire a qualified captain and any crew they need.
Legal Requirements Under U.S. Coast Guard Regulations
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Under U.S. Coast Guard (USCG) regulations, a bareboat charter must meet the following conditions:
- The vessel is leased without crew.
- The charterer has full possession and control of the vessel during the charter.
- The charterer selects and pays the captain and crew directly.
- The owner or charter company cannot dictate who operates the vessel or control its navigation.
- The charterer assumes full responsibility for the vessel and all persons aboard.
- The vessel cannot carry more than 12 passengers unless it is a USCG-inspected vessel.
Captain and Crew Selection
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No Contingencies Cruises offers guests a list of independent, qualified captains who are familiar with the vessel. Charterers may choose a captain from this list or hire any other licensed captain of their preference. All captains operating a bareboat charter must hold a valid U.S. Coast Guard Captain’s License (OUPV or higher). Captains and crew are not employees of No Contingencies Cruises and are paid directly by the charterer.
Florida State and FWC Compliance
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Florida law requires vessel operators and livery businesses to follow all Florida Fish and Wildlife Conservation Commission (FWC) standards. Every charter must include a completed FWC Livery Safety Checklist and Compliance Statement, signed by both the owner and the charterer before departure. This checklist verifies that safety equipment, float plans, and the vessel’s condition have all been reviewed and confirmed.
Insurance and Liability
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Palm Beach Sun Charters carries insurance for the vessel; however, once the boat is delivered to the charterer under a bareboat agreement, the charterer assumes full operational responsibility. Charterers are encouraged to confirm with their chosen captain or crew that they have adequate liability coverage for the services they provide.
Actions Prohibited to Maintain Regulatory Compliance
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- The owner designates or pays the captain or crew.
- The vessel operates as a ‘for-hire’ passenger service instead of a true lease.
- The charterer lacks control over the vessel’s operation or route.
- More than 12 passengers are carried on an uninspected vessel.
- The vessel fails to meet safety or documentation standards.