A recreational policy covers you, your family and guests who do not pay. Once anyone pays, you need a commercial policy that names the use, the captain and the certified capacity, and Panama's ATP and AMP require civil liability cover before they license a charter. Using a pleasure policy for paid trips is the quickest way to end up uninsured.
Where the line falls
Insurers decide by use, not by who you think the guests are. Panamanian wordings make the distinction clear. ASSA's hull application offers two non-commercial uses:
- Placer: personal and family pleasure.
- Turismo: pleasure plus carrying executives, employees, guests and goods.
Both exclude paid or instructional operations. That covers more than a formal charter:
- guests who pay you directly, by card, transfer or Yappy
- trips sold through a booking platform
- a bareboat lease, where someone else operates your boat for a fee
- paid lessons or captain training aboard
- friends who "share costs", if the money goes beyond a real split of fuel. Ask the insurer in writing how it treats this.
Recreational and charter cover side by side
| Recreational (placer) | Charter (commercial) | |
|---|---|---|
| Who is aboard | Owner, family, non-paying guests | Paying passengers, up to the certified capacity |
| Registration | Pleasure patente | Commercial domestic service, with AMP inspection |
| Who operates | Owner or named operators with an AMP licence | Named captains with the right AMP licence for commercial service |
| Liability | Your choice of limit | Required by the ATP and the AMP; AMP amounts are set in your licence resolution |
| Passenger accident | Optional | Strongly advisable; required for some vessel classes |
| Premium | Lower | Higher: more people, more hours, more exposure |
The registration change is explained in pleasure vs commercial registration. Insurers ask which one you hold, and the two must match.
What the agencies require
The detail belongs to the charter side of this site, so this page only points to it. In short, the ATP requires a civil liability policy for marine tourist transport, the AMP requires a performance bond and a liability policy for its operating licence, and yacht leasing under AMP Resolution J.D. 089-2020 needs a policy covering a long list of named risks.
The amounts, the policy list and the questions to ask are in charter liability insurance and waivers. The licence chain they sit in is in charter licences and permits.
Owners who charter some of the time
Many owners use the boat privately and put it into charter for part of the year, often through a management company. Three things go wrong most often:
- Two policies, one gap. The owner's pleasure policy and the operator's commercial policy each assume the other applies. Agree in writing which policy covers which days.
- Named insured. The policy should name the owner, the operating company and any lender, as the broker advises.
- Captains. Every captain who runs a paid trip must be named and hold the right AMP licence.
Put these in the charter management agreement so they are settled before the first booking.
What a commercial policy adds
A charter policy is not just the pleasure policy at a higher price. It should cover the extra risks of carrying the public. Check for each of these:
- Passenger liability with a limit per occurrence high enough for a full boat, not just one guest.
- Passenger personal accident and medical, which pays small injuries quickly whoever was at fault.
- Crew. Employed crew are covered by the CSS, but a policy can add cover for the employer's liability. See crew injuries in Panama.
- Water toys and activities: snorkelling, paddleboards, towed inflatables, jet skis. Many policies exclude them unless named.
- Wreck removal and pollution, which a busy bay or marina will pursue you for.
- Legal defence costs, paid on top of the limit or inside it. Ask which.
Expect the insurer to ask for your safety equipment, the captains' licences, your passenger records and your booking terms.
Foreign-flagged yachts
A foreign yacht cannot charter on a visitor's cruising permit. Decreto Ejecutivo 4 of 2025 provides a separate charter permit tied to a licensed local operator, covered in chartering a foreign-flagged boat. A home-country yacht policy written for private use will almost certainly exclude it. Get commercial cover that names Panama, the operator and the charter use before the first guest boards.
Questions to put to your broker
- Does the policy cover paid passengers, and up to how many?
- Which captains are named, and which AMP licences does it accept?
- Does it meet the ATP and AMP liability requirements, and will the insurer issue the certificate they ask for?
- Are booking-platform trips covered?
- Are swimming, snorkelling, towed toys and jet skis covered?
- Does it apply on days the boat is used privately, or do I need a second policy?
Get the answers in writing. The cost side is in boat ownership costs and charter costs and pricing.
Your practical starting checklist
- Decide honestly whether anyone will pay for a trip this year, through any channel.
- If yes, move the boat to commercial registration and get AMP inspection.
- Ask a broker for a commercial policy naming the use, captains and certified capacity.
- Confirm the policy meets ATP and AMP liability requirements before you apply.
- If you also use the boat privately, agree in writing which policy covers which days.
- Keep the certificate aboard and send copies to the operator and the marina.
Frequently asked questions
Can I take paying guests on a recreational policy?
No. Panamanian pleasure and tourism uses exclude paid operations. A claim from a paid trip can be refused.
Do friends who chip in for fuel make it a charter?
It depends on the insurer and how the money is handled. Ask in writing; if it looks like a fare, treat it as one.
Does a booking platform's insurance replace my policy?
Usually not. Platform cover, where it exists, applies only to its own bookings and does not satisfy the ATP or AMP.
Does a charter policy cover jet skis and towed toys?
Only if they are named. Many marine policies exclude them by default, so list every toy you carry when you ask for a quote.
Is charter insurance much more expensive?
It is higher, because more people are aboard more often. Get quotes on the same boat for both uses and compare.
¿Puedo cobrar a mis invitados con una póliza de placer?
No. Los usos de placer y turismo excluyen las operaciones remuneradas. Para pasajeros que pagan necesita una póliza comercial y la responsabilidad civil que piden la ATP y la AMP.
The next question to answer
The full costs and insurance collection. Read Boat ownership costs and insurance in Panama.
What the ATP and AMP require. Read Charter liability insurance and waivers in Panama.
Who sells it and what it covers. Read Boat insurance in Panama.
Same topic in Florida: coming from the US? Compare Recreational vs Charter Insurance.
Official resources
Use the relevant Panamanian authority for current requirements and fees. These resources are the next place to check; a practical recommendation is not an agency determination.
- ASSA Compañía de Seguros: solicitud de seguro de casco marítimo (insurer form) ↗
- AMP: Resolución J.D. 089-2020, arrendamiento de yates ↗
- Gaceta Oficial: Decreto Ejecutivo 4 de 11 de febrero de 2025, turismo náutico ↗