MYBA (Mediterranean Yacht Brokers Association) has standardized international yacht charter contracts since 1989. The agreement specifies responsibilities of yacht owners and charterers, cancellation terms, insurance coverage, and damage liability resolution. For the international charterer, understanding MYBA protects your investment and clarifies your rights. This guide is current as of January 2026.
Table of Contents
- What is MYBA and why it exists
- Five main sections of MYBA
- Cancellation: your protection and risks
- Insurance: what is covered
- Damage liability
- Jurisdiction and applicable law
- FAQ
What is MYBA and why it exists
MYBA is a standard contract created in 1989 by the Mediterranean Yacht Brokers Association (now with members in 20+ countries beyond the Mediterranean). It solved a historical problem: without standards, every charter had different terms, confusing clients and generating disputes.
The MYBA agreement defines:
- Owner's rights: receive payment, retain the yacht, hold charterer liable for damage
- Charterer's rights: use the yacht as agreed, depart safely, receive refund for failures
- Captain's responsibilities: navigate safely, maintain the yacht, protect guests
- Insurance coverage: who pays if total loss, lost revenue, third-party liability
For the international charterer, MYBA = predictable legal protection, no end-of-charter surprises.
Five main sections of MYBA
1. Party identification - Owner (typically represented by broker) - Charterer (you, the client) - Yacht (technical description: size, year, flag, registration) - Departure and return dates/locations - Duration (e.g., 7 days) - Price (charter + APA + fuel)
2. Owner's obligations - Deliver the yacht in "charter-ready" condition (clean, fueled, fresh water, crew prepared) - Maintain liability insurance (EUR 1–5 million depending on yacht size) - Maintain hull insurance (covers damage to the yacht) - Guarantee certified crew
3. Charterer's obligations (you) - Pay 50% deposit when signing - Pay remaining 50% thirty days before departure - Use the yacht "as a prudent mariner" - Not take the yacht to war zones, illegal cargo, or unauthorized persons - Pay for damage caused by your negligence (not normal wear) - Return the yacht on time in reasonable condition
4. Cancellation, refunds, travel insurance - Cancellation 60+ days before: full refund - Cancellation 30–60 days: lose deposit (50%) - Cancellation less than 30 days: lose 100% - Trip cancellation insurance (optional, EUR 200–500): protects your deposit if you cancel due to illness, family death, natural disaster
5. Damage liability, deductibles, limits - Minor damage (scratches, broken glass): you pay up to EUR 2,500–5,000 deductible - Major damage (collision, grounding): you pay deductible; insurance covers above - Catastrophic loss (yacht sunk): insurance covers full yacht value - You are not liable for mechanical failure or normal wear
Cancellation: your protection and risks
This is the most critical item for international charterers.
Scenario 1: You cancel by choice - 60+ days before: full refund - 30–60 days: lose deposit (50%) - 0–30 days: lose 100%
Scenario 2: You cancel for emergency (illness, death in family) - Standard MYBA: you still lose the deposit - Protection: trip cancellation insurance (EUR 200–500) refunds your deposit for proven illness/death - Always buy trip insurance if you: - Travel long-distance (visa risk, long flight) - Have pre-existing health conditions - Plan to bring small children (illness risk) - Fear "Act of God" cancellations (hurricane, pandemic)
Scenario 3: Owner cancels or yacht fails - Owner delays 7+ days: you receive full refund - Owner offers substitute yacht same category: you decide to accept or forfeit - Yacht taken out of service (grounding, damage): full refund
MYBA actually protects charterers better than owners on owner-side cancellations. Read the "Force Majeure" clause carefully—rules change by country and year (especially post-2020 pandemic contract disputes).
Insurance: what is covered
MYBA specifies two types of insurance:
1. Yacht insurance (owner's) - Covers catastrophic damage to yacht (total loss, fire) - Covers loss of yacht's charter income - Deductible: EUR 2,500–10,000 depending on size - You do NOT pay premium; included in charter price
2. Third-party liability insurance - Covers damage caused by the yacht to others (hitting another boat, damaging dock) - Coverage: EUR 1–5 million - You do NOT pay; included in charter price - If you cause damage to third party (tender accident), insurance covers up to limit
Trip cancellation insurance (OPTIONAL) - You purchase separately (EUR 200–500) - Covers your loss if you cancel due to illness/death/disaster - Buy from travel insurance company, not the owner
Damage liability
This is where charterers face real risk.
You are liable for: - Negligent damage (grounding because you navigated in forbidden zone) - Damage from excessive speed in protected zone - Damage caused by a guest the yacht rejected beforehand - Failure to refuel (you must return yacht at same fuel level)
You are NOT liable for: - Mechanical failure (burned engine, leak) - Normal wear (light hull scratches) - Weather damage (sudden storm) - Defects the captain didn't disclose (broken AC)
The deductible: - Small yachts (40m): EUR 2,500 deductible - Mid-size (50m): EUR 3,500–5,000 - Superyachts (70m+): EUR 5,000–10,000 - You pay deductible; insurance covers above
International charterers often underestimate risk. If you cause significant damage (EUR 50,000 dock impact), you pay deductible (EUR 3,500) plus any residual liability.
Jurisdiction and applicable law
MYBA specifies:
- Applicable law: English law (common law), except VAT (local law)
- Arbitration: disputes go to arbitral tribunal, not state court
- Language: contract written in English; you may request certified Portuguese translation
For international charterers: you sign an English contract. If disputes arise, arbitration occurs in London (high legal costs). Therefore, NEVER sign MYBA without legal review by a maritime attorney—in your language.
FAQ
Is MYBA mandatory for all yacht charters?
Yes. Every professional charter operator uses MYBA or its variant. If an owner offers a homemade contract (non-MYBA), red flag—they don't respect international standards.
Can I renegotiate MYBA terms?
Rarely. MYBA is standard for both owner and charterer. You can negotiate: - Damage deductible (sometimes) - Cancellation waiver (occasionally) - Additional insurance (always)
Everything else is fixed by MYBA standard.
How much does trip cancellation insurance cost?
EUR 200–500 depending on charter price. For a EUR 150k charter, insurance costs EUR 3–5k (2–3%). Recommended always.
If I don't pay the deposit by the deadline, is the contract void?
Yes. MYBA specifies deposit due date (typically 7 days after signing). Non-payment voids contract and owner keeps deposit.
Can the captain refuse a navigation zone for safety?
Yes. MYBA permits the captain to prohibit navigation in risky zones (war, storm, protected marine area). You cannot object; safety rules apply.
What if the yacht has a defect mid-charter?
You notify the captain immediately. If defect prevents safe navigation, captain goes to nearest port, repairs (at owner's cost), and resumes. If unrepairable within 48 hours, you receive compensation (typically pro-rata price reduction).
Am I liable if a guest is injured onboard?
No. Owner's liability insurance covers guest injury. You are not personally liable (liability is owner's/captain's responsibility). However, owner may have right of recourse if you violated rules (e.g., excessive alcohol consumption leading to fall).
If the yacht is damaged and taken out of service, do I pay for idle days?
No. MYBA states: if yacht is taken out of service due to damage, you receive a refund. Owner cannot charge for idle days.
CTA — Review MYBA with a lawyer before signing
Before signing MYBA, send a copy to an attorney specializing in maritime or international contract law. Cost: EUR 200–500 for consultation, but worth the protection. Voguer Yachts can recommend trusted firms.
Continue exploring: APA Explained: What the Advance Provisioning Allowance Really Covers · How Much Does It Cost to Charter a Yacht in the Mediterranean in 2026 · Charter VAT Compared: France, Italy, Spain, Greece and Croatia
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