Do ship flags do anything when attacking ships?

[Teacher]

I've got a bunch of different faction colors and was wondering...

 

Does it matter which flag I use when attacking ships? Do flags have any impact on reputation with the attacked faction (like losing reputation attacking Vailian Trading Co ships with Watcher colors)?

 

I know that a flag can be used early on for a quest and there may be more of those. What I'm curious about is the open world naval combat impact.

[LostHero]

Looks like they affect which ships/factions attack you on the sea map, but not 100% sure.

[Zeitzbach]

Flag allows you to sail on certain area without getting attacked because you are part of their faction. You don't really lose anything for attacking bounty ships. I just name my ship SS Furfest with Purple Fox as my flag because it's hilarious.

[Teacher]

So it's there as a disguise then? Good to know!

 

I guess I was overthinking it with the reputation thing :D