Did you know that there are over 12 million recreational boats registered in the United States? With so many boats on the water, commercial boat owners must ensure that they have sufficient insurance to protect their investments.
Recreational boating industry in the United States has an annual potential cost of $170 billion.
Everything is handled, from boat sales and rentals to maintenance and repairs if you buy commercial marine insurance. Commercial boat owners must consider their insurance requirements seriously because there is so much money at stake.
This blog will give essential information to help you make sensible insurance selections, if you are a commercial fisherman, charter boat operator, or yacht owner.
Today we will discuss commercial boat insurance cost, its types and how to choose the best policy for your vessel.
What is Commercial Boat Insurance?
Commercial marine insurance protects commercial vessels and their owners from financial loss or liability resulting from accidental damages that may occur while the boat is in water.
It also protects against a wide variety of risks connected with commercial boat activities, such as collision, theft, fire, sinking, and storm or other natural catastrophe damage.
Commercial boat insurance policies meet the particular needs of each vessel and its owner, and may cover equipment, cargo, and people.
Commercial marine insurance protects against third-party liability claims, such as those made by other vessels or individuals who are wounded or suffer property damage as a result of a commercial boat accident.
Why Do You Need Commercial Boat Insurance?
Assume you own and operate a commercial fishing vessel. You’re on the ocean when a storm forms and the water becomes choppy. You decide to go in, but the storm comes down hard. You hit a charter boat while mooring.
Your business marine insurance will covers the other boat’s damage and yours.
Most people do not expect the worst things that can happen to them. However, whether you own fishing boats or rent out charter boats to tourists, you must protect your company and your customers.
What Vessel are covered by Commercial Boat Insurance Policy
- Vessels for inshore and offshore fishing
- Boats for sightseeing and tours
- Charter boat
- Waterskiing and wakeboarding schools
- Rental services
- Boats used for entertainment
- Commercial fishing boats
- Barges transporting oil
- Cruise ships
Commercial marine insurance should be obtained for any other commercial watercraft that transports paying passengers or commercial freight.
Submersibles Covered by commercial marine insurance
Underwater vessels can also be covered by commercial marine insurance if they are used for commercial purposes. Submersibles of this type include:
- Submarines for tourists
- Submarine research stations
- Expedition and sport diving companies
- Underwater autonomous vehicles (AUVs)
- Marine and subsea energy companies
What does commercial boat Insurance Covers:
Commercial marine insurance coverage is designed to protect businesses that operate on or near the water. There are several different types of coverage options available, including:
Hull Boat Insurance coverage:
Commercial marine insurance protects a vessel’s hull, machinery, and equipment. Commercial boat insurance coverage for damages caused by collisions, storms, and other perils.
You can safeguard your boat’s hull and machinery with hull and machinery coverage. Commercial marine insurance includes the following coverages in addition to the specified machinery and hull:
- Personal belongings
- Personal belongings
- Equipment that is permanently attached
- Unattached equipment
Protection and Indemnity (P&I) coverage:
P&I insurance covers third-party claims including bodily injury, property damage and pollution. Commercial maritime insurance also covers litigation legal defense fee as well.
A protection and indemnity policy is an essential component of commercial boat insurance. With commercial marine insurance coverage, you can get coverage for bodily injury claims from passengers, crew members, and anyone else on your vessel.
Cargo Insurance coverage:
Cargo insurance coverage provides coverage for goods that are transported by sea, air, or land. Commercial boat insurance protects against loss, damage, or theft of cargo during transit.
Cargo that is damaged, lost, or stolen can be costly and damaging to your company’s reputation. Obtaining ocean cargo insurance can assist you in covering any costs associated with missing or damaged cargo as a result of incidents such as
- Incorrect loading
- Rough handling
- Bad weather
- Bad atmospheric conditions
Marine General Liability Insurance coverage:
Commercial marine insurance coverage provides liability protection for businesses that operate on or near the water, such as marinas, boat dealers, and yacht clubs.
Builder’s Risk Insurance:
Builder’s risk insurance covers damages to a vessel while it is on repair. Commercial boat insurance covers materials, equipment, and labor.
Loss of Hire Insurance:
Loss of hire insurance provides coverage for lost income when a vessel is out of service due to a covered loss, such as a collision or storm damage.
Marine Professional Liability Insurance:
Commercial marine insurance coverage is designed for businesses that provide professional services in the marine industry, such as marine surveyors, naval architects, and marine engineers.
Commercial boat insurance protect against claims of negligence, errors, and omissions.Every maritime company should purchase marine liability insurance. A marine general liability policy provides coverage for the following claims:
- Injuries to the body
- Damage to property
- Advertising harm
- Reputational damage
These are just a few of the many types of commercial marine insurance coverage options available. It’s important to carefully assess the risks and to buy policies which are appropriate for your business needs.
Uninsured Watercraft Coverage:
If one of your insured vessels collides with an uninsured boat, having uninsured watercraft coverage will assist you in covering any costs or losses incurred as a result of the collision.
Workers compensation coverage:
Because maritime workers work in a high-risk environment, a workers’ compensation policy is critical for protecting your employees and ensuring their care in the event of injury or illness.
Removal of wreckage:
Wreckage removal insurance can help you cover the costs of disposal if your vessel is badly damaged or sunken. Wreckage removal insurance can also help maritime business owners cover clean-up and containment costs related to pollution or contamination caused by their boat’s wreckage.
Marine Workers Coverage
Commercial marine insurance can also cover marine laborers who do not necessarily work on boats or water vessels. Some examples of marine laborers are:
Pollution Liability Coverage
You’ll be responsible for rescuing your boat’s debris if it sinks in a storm.
You will be held financially liable for any cleanup and decontamination costs if you transported hazardous materials. If you have pollution insurance, it may cover clean-up costs up to the policy limitations.
Boat Insurance Coverage for Marinas:
Marina owners frequently face a variety of property hazards that can cause damage to their docks, piers, bulkheads, and buildings. Marina commercial marine insurance frequently includes coverages such as
- Commercial property
- General liability coverage
- Commercial auto insurance and indemnity
- Liability for longshore and harborworkers
- Pollution coverage
Marinas may also require coverage for boat sales and construction.
Boat Insurance Coverage for BOATYARDS:
Boatyards provide safe harboring for watercraft owners, and as such, they should have adequate commercial marine insurance to protect stored property and their premises.
Boatyards requires Marine general liability insurance and but additional coverage options may include:
- Property liability
- Building and property protection
- Insurance for tools and equipment
- Coverage of docks and pies
- Indemnity and protection
What Is the Cost of Commercial Boat Insurance?
Boat insurance costs $200 to $500 per year for small boats and up to 5% for larger boat’s. A $100,000 boat, for example, might cost around $2,500 per year to insure.
Here are some average premium costs of several boat insurance.
- Large motor boats’ premiums cost around £260 on average.
- Dutch barges average premium cost more than £700.
- RIB insurance typically costs around £330.
- Catamarans typically cost around £480.
Here are the factors that effect policy premium
- The worth of the vessel. Is it brand new? Is it in use? This will result in a change in the insured value.
- What is the boat’s length? What is your age?
- What are the boat’s specifications? What materials are used to make it? Is it a gull, a catamaran, a sailing yacht, or a fishing boat?
- What are the engine specifications?
- Where does the boat usually berth?
- On the boat, where do you go? How far is it? What is the navigator’s goal?
- The claims history of the owner, captain, or navigator.
- The planned usage of the watercraft.
- The insurance company you choose.
- If you want to save money and get a cheaper premium, one thing you can do is show that you have safety features in place to protect your boat and passengers, such as automated fire extinguishing systems.
Contact a business boat insurance agent who understands marine policies to get a quote.
Is a Boat Covered by my Homeowners Insurance?
It’s wise to insure your boat or yacht. Contrary to popular misconception, your boat is not automatically covered by your homeowners insurance.
If you cause an accident or are involved in one with an uninsured vessel, you may be held liable for the costs of repairs, property damage, medical bills, and other charges. Your financial well-being may be compromised if you do not have adequate coverage.
Partnering with an insurance expert to develop a marine insurance coverage that helps match your unique needs and budget will help protect you, your loved ones and your valuables in the case there is a boating disaster.
Does boat insurance policy cover passengers?
In the event of an accident, boat insurance covers passengers and owners. Liability portion of the boater’s policy covers People on the boat.
But, depending on the policy, this may or may not apply to water skiers you are towing behind the boat. Work with a competent specialist who can assist you in assessing your needs and dangers.
Does where I park my boat affect my insurance premium?
Yes, your boat insurance prices depend on where you keep and dock it. Boat insurance also depends on the “navigation territory” where you operate your boat. As an example:
If you keep or moor your boat in an area prone to hurricanes, your policy premium may be higher.
If you use your boat on inland lakes and rivers, your policy premium will be lower than if you use it on the ocean.
Boat insurance Frequently Asked Question
Is my boat insurance going to cover me if I strike a rock?
Your boat insurance will cover collisions with rocks, logs, and other marine obstructions if you have comprehensive insurance or property damage coverage.
Is engine damage covered by yacht insurance?
boat insurance covers Engine damage occasionally. This varies depending on the firm and the policy. Some insurance companies exclude mechanical damage, while others do not; this frequently relies on the age of the vehicle. Reimbursement includes Replacement cost or depreciation.
Is a blown engine covered by boat insurance?
Under certain conditions, boat insurance will cover a blown engine. Many insurance policies will cover a blown engine if the cause is a manufacturer’s defect, but not if the cause is normal wear and tear.
Is hurricane coverage available in boat insurance?
The insurance company and policy may cover hurricane damage to your boat. Ask your agent about storm damage coverage for your boat if tropical storms, hurricanes, tornadoes, or windstorms are a concern where you live or travel with your boat.