Yachts can serve various purposes, but from an insurer’s perspective, the safest usage in terms of potential risk is for private, recreational purposes. In these cases, the lower frequency of use, limited time spent at sea, heightened awareness of the yacht's condition, and the personal attachment owners often have for their boats typically result in lower risks. However, the scenario changes when yachts become income-generating assets. Prolonged periods of sailing—particularly during peak seasons—reduced time for maintenance due to back-to-back charter agreements, and the use of less-experienced skippers create heightened concerns for yacht insurance underwriters.

Bareboat charters, in particular, can be especially problematic. In some markets, insurance companies either completely refuse coverage or offer very limited policies for such arrangements. This stance is widely understood, not only by underwriters but by anyone involved with yachts and interacting with insurers.

However, in some regions, there are emerging risks that go beyond the well-known concerns. Occasionally, yachts are used not only for private or charter purposes but are also employed in illegal activities such as human trafficking.

One of the primary hubs for illegal migration by sea is the Aegean coast, particularly from Turkey to the Greek islands. Fishing boats, traditional wooden vessels and even luxury motor yachts are being used for these perilous journeys. Overcrowded vessels, often carrying 80-100 people, make these trips extremely dangerous and frequently life-threatening.

This issue isn't confined to the Turkey-Greece corridor. In the first half of this year, approximately 15,400 migrants attempted to reach the UK by sea. In July alone, 2,000 people arrived in the UK aboard 34 yachts, averaging 59 people per boat. Tragically, in the first seven months of the year, 22 lives were lost.

While some boats involved in these activities are stolen or operated by organised smuggling rings, many of the vessels used in illegal human trafficking are bareboat charters. This raises a critical question: Can these incidents be prevented? Is it possible to detect when a yacht is being rented for purposes other than what was agreed?

There are certain red flags that may indicate illicit intentions:

• Offering or accepting unusually high charter rates without further inquiry.
• Providing vague or inconsistent explanations for planned routes.
• Bringing insufficient personal belongings for the intended voyage.
• Stocking less food and beverages than would typically be expected for the trip.

Observing such warning signs can lead to further questioning of the charters true purpose, and in some cases, escalation to authorities. Such actions may result in the sudden termination of the charter agreement by the client.

Collaboration is essential to prevent yachts from being used for illegal human trafficking. This requires coordinated efforts between brokers, yacht charter companies, agents, marina management and local authorities.

While yachts can be repaired or replaced, lost lives can never be restored.