The security bond serves as a form of protection for the boat owner in case of any damages, loss, or breaches of the hire agreement during the charter period. It's essentially a deposit that is refundable after the charter, provided that the boat is returned in the same condition it was in at the start of the hire and that all terms of the agreement have been adhered to. If there are any damages or issues, the cost to repair or rectify them may be deducted from the security bond before it is returned to the customer.